1)

Investors (75%) and advisors (94%) self-identify as being somewhat or very knowledgeable about the national debt; 90% of investors believe their advisor is knowledgeable.

2)

Survey findings Do Not Support this Knowledge with virtually none able to correctly answer three basic questions: 1) how much is the debt?, 2) what is the debt to GDP ratio? and, 3) who is the largest holder of the debt? For example, when asked unaided, “Who do you believe to be the largest holder of U.S. National Debt,” 98% of investors and 91% of advisors answered incorrectly. When aided, they performed only slightly better.

3)

Investors (82%) are concerned about the size and trajectory of the debt having a negative impact on them and/or their children. Advisors (72%) recognize their clients’ concerns. The investor survey did not find any appreciable differences between gender, age, marital status, amount of investable assets, or whether they work with an advisor. 

4)

Investors (82%) and advisors (95%) desire a better understanding of the debt and its possible risks.

5)

Few Advisors (28%) report that their firm provides research/training material; most (81%) are interested in their firm providing it.

6)

Few Investors (23%) report discussing the debt with their advisor. Some advisors (57%) report discussing the debt with clients. Then with, on average, only 35% of their client base.  Both investors and advisors acknowledge that the investor typically takes the lead in raising the topic.

7)

Advisors (60%) express concern that greater investor understanding of the debt could have an adverse impact on consumer confidence and the stock and bond markets.

8)

Advisors (64%) report their firm earns fees/revenue from selling, trading or advising on U.S. Treasury securities – i.e., the national debt.

9)

Investors (89%) and advisors (99%) believe government officials should be held accountable for the debt – virtually all use strong negative words to describe the debt.

10)

Investors (53%) and advisors (68%) are aware Congress heard testimony from government organizations about the economic or national security threat of the debt.

11)

Advisors (56%) are more likely to believe there will be a cure for cancer in their lifetime (56%) than believe they will receive 100% of social security when eligible and for the rest of their life (43%).