Finance
Lily Nguyen (MSFS’26) bridges climate policy, finance and global diplomacy | School of Foreign Service | Georgetown
Before arriving on the Hilltop, Lily Nguyen (MSFS’26) spent two years living and working in rural Japan through the Japan Exchange and Teaching (JET) Program. Based in a small community in Kumamoto, she taught English in local schools and liaised with national officials to advocate for improved labor standards for fellow participants—an experience that ultimately inspired her to come to Georgetown, accompanied by a broad interest in climate change and international affairs.
“I’ve always wanted to live in Washington, DC, and when I decided to pursue graduate school in international affairs, I knew I wanted to be at the best of the best,” she says.
As she prepares to walk across the stage this May to receive her Master of Science in Foreign Service degree with a concentration in Science, Technology and International Affairs, those once-broad interests will have sharpened into a more defined path. Through coursework, research and hands-on policy experience, Nguyen has developed a focused commitment to climate finance and carbon markets.
Refining global interests through community and coursework
As the daughter of Vietnamese refugees, Nguyen grew up in a diverse immigrant community in Wichita, Kansas, surrounded by people who were constantly bridging cultures, languages and shared values.
That environment made global issues feel personal from a young age and sparked her interest in international affairs, she shares. While she initially chose the MSFS program for its rigor and leadership in international affairs, it was that same instinct for connection that ultimately confirmed her decision.
“I wanted to be surrounded by ambitious classmates and faculty who take global challenges seriously, and MSFS absolutely delivers that,” she says. “At the same time, it’s a surprisingly close-knit community.”
Early in the program, Nguyen participated in the Gettysburg Leadership Staff Ride, an interactive seminar sponsored by Georgetown’s Department of Government held at Gettysburg National Military Park designed to highlight applicable lessons of leadership, tactics and strategy, communications, use of terrain and the psychology of persons in battle. This experience, she says, set the tone for “that balance of history, strategy and reflection” throughout her time in the MSFS program. At the same time, she continued developing her Japanese proficiency, progressing from intermediate coursework to Business Japanese and strengthening both her policy vocabulary and professional communication skills.
“One of my favorite weekly traditions has been the Japanese language table, where students of all proficiency levels grab a free drink from the MUG and practice speaking together in a relaxed setting,” she says. She credits her instructors—Professors Yoshiko Mori, Motoko Omori Lavallee and Kumi Sato—with supporting her growth inside and outside the classroom.
Her favorite class, however, was Introduction to GIS and Spatial Analysis, taught by Professor Julia Marrs. Covering the fundamentals of Geographic Information Systems, the course introduced tools increasingly used in climate science, urban planning and security analysis. Nguyen says Marrs’ kindness and clarity “made what initially felt like an intimidating technical subject both accessible and exciting,” while the class itself transformed how she approaches global challenges by equipping her with spatial tools to visualize patterns in climate vulnerability, infrastructure and security risk.
“Being able to map data and see how geography shapes policy made issues like climate security and humanitarian resilience feel tangible and measurable in a new way,” she says.
Her final project for Marrs’ class, “Weathering the Ring of Fire: Mapping Climate Hazards on Military Installations in the Indo-Pacific,” applied those lessons to examine how climate risks intersect with defense strategy. The project sharpened her interest in using geospatial analysis to visualize complex climate security dynamics and demonstrated how technical tools can inform strategic decision-making.
Nguyen also credits Professor Theresa Sabonis-Helf, her STIA concentration chair, with profoundly impacting her time at Georgetown. Generous with her time, Sabonis-Helf spent hours in conversation with Nguyen discussing everything from favorite classes to larger questions about energy security and how to remain hopeful about the future.
“She consistently encouraged me to pursue experiential learning beyond the classroom,” she says, crediting Sabonis-Helf with her STIA-sponsored visits to the Calvert Cliffs Nuclear Power Plant and NearStar Fusion to learn more about advancements in nuclear energy and fusion technology. “Those experiences made the policy discussions we had in class feel tangible and immediate, and they deepened my interest in the role of advanced energy technologies in global security.”
Growing through leadership, service and global dialogue
Throughout her MSFS journey, Nguyen has come across multiple opportunities that make her experience feel full circle, like volunteering with the Kakehashi Program, which connected back to her time living in Japan.
At Georgetown, she served as communications and media head for the SFS Energy Club, a graduate teaching assistant for a course on Energy Transitions and a graduate student fellow with the Initiative on Catholic Social Thought and Public Life. In the latter role, Nguyen helped organize public dialogues and programs on major political and social issues. She was also elected as an MSFS student representative and helped facilitate communication between students and MSFS program leadership. One of her favorite responsibilities was organizing the annual MSFS Winter Ball at the Mexican Cultural Institute—a formal winter celebration where students, faculty and alumni come together to connect, celebrate and network, all in their finest attire.
Beyond the Hilltop, Nguyen gained professional experience with USAID, the National Cherry Blossom Festival and the Holy See Permanent Observer Mission to the United Nations, which she described as feeling like a family. Working at the intersection of climate change, migration, technology governance and humanity, she supported preparations for the Fourth International Conference on Financing for Development and the High-Level Political Forum while with the mission in New York City—gaining firsthand exposure to multilateral negotiations and development finance discussions.
“In true UN fashion, we even had our own ‘side events,’ from Mets baseball games and movie nights to one memorable afternoon when we were invited to a private rooftop overlooking Times Square and surprised with a projection of Pope Leo XIV’s face on a massive Times Square screen,” she recalls. “The incredible home-cooked lunches didn’t hurt either.”
These experiences have deepened her interest in how climate vulnerability intersects with fragile and crisis-affected settings. But beyond the professional opportunities, it’s the everyday moments, like running into program leadership in the halls, where “ambition and kindness coexist so naturally,”that made the program feel accessible and supportive in a way she hadn’t expected.
Where global policy meets friendship and community
With graduation approaching, Nguyen hopes to pursue a career at the intersection of climate security and development finance, helping design and deploy financial mechanisms that strengthen resilience in vulnerable and fragile contexts. Building on her experiences, she also hopes to remain active in spaces where policy, finance and ethical leadership converge, while continuing to build bridges between the United States and Japan and explore the moral and diplomatic dimensions of global governance.
“Together, they helped me see how finance, security, and diplomacy can reinforce one another in global policymaking,” she says. “MSFS put me at the center of global policy conversations while grounding me in a close, supportive community. It’s rigorous, fast-paced and full of opportunity.”
“I’ll miss the energy of being in a place where global policy feels immediate and alive,” she says.
Looking back on her time at Georgetown, Nguyen recalls highlights such as meeting inspiring public figures, like the Irish Taoiseach and the Mongolian Apostolic Prefect of Ulaanbaatar; competing in Model NATO; and winning first place in the Global Social Innovation Lab Pitch Competition with her teammates. But some of her favorite memories are the smaller, lighter moments—getting overly competitive during classroom negotiations and war games, hosting mini potlucks in her ethics class or organizing a zoo trip with her cohort to practice a little “panda diplomacy.”
“There’s something special about walking from class to an embassy event or leaving a seminar discussion and heading to a book talk with a policymaker whose work you just studied. Georgetown, and SFS in particular, makes the world feel both big and accessible at the same time.”
Finance
The Impact of Financial Advisors Since the Uptick in Policy Risk – Center for Retirement Research
The brief’s key findings are:
- Our recent survey research found that older investors are more concerned about their financial future due to greater uncertainty over federal policy.
- This new analysis explores whether financial advisors can help them cope.
- Advisors are broadly more optimistic than investors on the economy and on how policy actions might impact financial security.
- But on the specifics, advisors express concern over Social Security, Medicare, federal debt, and inflation, with many urging precautionary actions.
- This ambivalence may help explain why advisors have no significant impact on their clients’ views on the future or investment strategy.
Introduction
Planning for retirement has always been hard, because people face numerous risks – including outliving their money (longevity risk), investment losses (market risk), unexpected health expenses (health risk), and the erosive impact of rapidly rising prices (inflation risk). Further complicating such planning are possible shifts in the public policy environment: changes to social insurance programs can undermine the foundations of a retirement plan; changes to the tax system can scramble a household’s finances; and a ballooning government debt can increase interest rates and slow the economy. The level of policy risk seems to have increased dramatically since the start of 2025, so the question is how the recent uptick may be affecting the decisions and behavior of near-retirees and retirees.
This brief is the second of two drawn from a recent study on the potential impact of policy risk on planning for retirement.1 The first addressed that question by combining a summary of the academic literature on the nature and effects of policy risk with a new survey of the changes in the views and actions of near-retiree and retiree investors since the start of 2025. This second brief adds the results of a companion survey of financial advisors, which provides information about what advisors are thinking regarding the uptick of policy risk in 2025 and what advice they are providing their older clients.
The discussion proceeds as follows. For background, the first section provides the major findings from the first brief. The literature review establishes that increased policy risk both harms the economy and burdens individuals. And the survey of near retirees and retirees indicates that older Americans are keenly aware of the increase in policy uncertainty and are taking defensive responses. The second section describes the 2025 Survey of Financial Advisors and presents the results. The final section concludes that, while older investors are worried and taking steps, financial advisors are ambivalent. This group retains a generally positive view of the economy despite recent developments, yet harbors some specific concerns. This ambivalence may explain why advisors have no impact on their clients’ views on the financial future or on investment decisions.
Policy Uncertainty and Response of Households
To be clear, “policy risk” is not about policy change, per se, but rather about the unpredictability of future policy. Even without any change to current policy, for example, a tight and polarized election forces households to consider a wider range of policies than if the election outcome were certain or the policy positions of the candidates were similar.
Major Findings from the Literature
Researchers have used an array of techniques to measure the level of policy risk and its impact. The most common approach is textual analysis of media coverage for terms associated with policy risk.2 But other approaches include looking at the impact of actual variability in policy parameters, estimating the impact of tight elections, and using surveys to gauge household perceptions of policy uncertainty and their likely responses.
The effects of policy uncertainty on the economy are broadly negative. In terms of the macroeconomy, uncertainty depresses economic activity, increases stock-market volatility, and reduces returns.3 Similarly, unemployment is found to rise in the face of greater uncertainty, while consumption and investment tend to fall.4
For those approaching retirement and retirees, the most salient risks are related to Social Security, Medicare, and fiscal policy (e.g., the federal debt and tariffs). In terms of Social Security, the big question is how policymakers will address the projected exhaustion of assets in the retirement trust fund in 2033 – raise payroll taxes by 4 percent, cut benefits by 23 percent, or some combination of the two. With regard to Medicare, while its finances are generally structurally sound, the issue is whether policymakers will continue to tolerate the program’s growing costs, which create an ever-increasing drain on federal revenues, or cut the program by raising either premiums or copayments. In terms of the ballooning federal debt, the risks are rapidly rising interest rates on Treasury securities, which cascade through to other forms of borrowing, and/or a major increase in taxes or a decline in spending.
As individuals take precautionary steps to protect themselves against policy risks, studies have shown that scaring people to take actions that they would not have taken in a stable environment has real costs. In the context of fixing Social Security, for example, researchers have found that individuals would be willing to forgo as much as 6 percent of expected benefits or 2.5 months of earnings to resolve the uncertainty.5
Results from the 2025 Retirement Investor Survey
The survey of near-retirees and retirees was conducted by Greenwald Research between July 7 and July 31, 2025. The sample consisted of 1,443 individuals ages 45-79 with over $100,000 in investable assets.
Throughout 2025, policy changed in drastic ways, and long-term trends in Medicare and Social Security financing have become more concerning. New deficits added to the already huge federal debt, and tariffs became a major source of anxiety. Not surprisingly, survey respondents have dramatically increased their consumption of media on these issues (see Figure 1).
It should therefore come as no surprise that near-retirees and retirees in the 2025 survey expressed concern about the direction and unpredictability of federal policy. Investors’ concerns for their financial future mounted (39 percent say concern increased versus 15 percent who say it decreased), while their confidence that federal policy will benefit Americans declined (61 percent decreased versus 26 percent increased, see Figure 2).
These older investors have already reacted to this unpredictability in several ways (see Figure 3). For example, 21 percent of the unretired respondents in the sample have decided to postpone their retirements. And, on the financial side, 28 percent of the entire group have increased the amount in their emergency fund, and 33 percent have shifted to more conservative investments.
In short, the evidence shows that older Americans are keenly aware of the increase in policy uncertainty and are taking defensive responses.
How Do Financial Advisors Differ from Investors and What Role Can They Play?
One group that could help older Americans cope with the heightened level of policy uncertainty is their financial advisors. To find out what advisors are thinking and what advice they are offering, the second survey interviewed 400 financial professionals. Each professional was required to have at least 75 clients, at least three years of experience at their current firm, and to manage over $30 million in assets. Furthermore, at least 40 percent of their clients must be 50 or older, and at least half their income must be derived from financial products or planning. These advisors represented a cross section of firms, including broker-dealers, registered investment advisors, insurance companies, banks, and full-service financial services firms.
The advisor survey reveals a different view of the retirement landscape and its susceptibility to policy risk than the investor survey, but also a nuanced one. On the one hand, advisors have a much rosier view of the economy in general. In particular, while 53 percent of near-retirees and retirees say the economy deteriorated between 2024 and early 2025 and only 26 percent say it improved, the numbers for advisors are nearly flipped, with 47 percent saying the state of the economy improved and only 25 percent saying it weakened (see Figure 4).
And while investors say the government’s future actions will weaken their financial security by a nearly two-to-one margin (47 percent versus 24 percent, see Figure 5), the views of advisors are again very different. Only 31 percent of advisors believe the government will weaken their clients’ finances, while 36 percent believe government actions will be positive.
On the other hand, even advisors seem to be recommending greater caution in response to the turbulent environment in 2025. In particular, 22 percent have recommended that their clients increase emergency savings since the beginning of 2025, as opposed to 3 percent recommending a decrease (75 percent recommend no change, see Figure 6). And the amount of attention advisors pay to political and policy issues has also increased since 2024 – 54 percent say they pay more attention to these topics than last year, as compared with 5 percent saying the opposite. Advisors’ level of concern about their own clients’ financial future also reveals their general unease: 28 percent say they are more concerned about their clients’ financial future in 2025 versus 2024, while only 9 percent say they are less concerned.
The advisors’ positive outlook for retirement is also somewhat contradicted by their concern regarding specific policy risks. Figure 7 shows that advisors are worried or very worried about a variety of risks. In fact, 63 percent report being worried about a major decline in the stock market, 65 percent are worried about a cut in Social Security benefits, and 79 percent about high inflation. Figure 7 also shows investor responses where the questions were similar to those for advisors. Notably, clients rank these risks quite similarly, but are almost uniformly more worried in absolute levels. Interestingly, both investors and advisors consider the federal debt to be the most concerning of the different topics.
The underlying pessimism of advisors beneath their overall positive sheen has some specific implications. While the vast majority of advisors either do not recommend a retirement age to their clients or did not change their recommendations between 2024 and 2025, 11 percent advised a later retirement age. Only 1 percent shifted in favor of earlier retirement (see Figure 8).
Moreover, the vast majority of advisors have recommended that their clients take precautionary actions in light of anticipated policy changes (see Figure 9). In particular, 21 percent have suggested cutting back spending; 49 percent have suggested changes to investments; 43 percent have suggested acquiring financial products to hedge investment losses; and 42 percent have suggested reallocation of resources, such as Roth conversions, based on the projection of higher future taxes. Only 21 percent have not recommended any of the above actions.
Of those advisors who recommended changes in investment strategies in 2025 relative to 2024, most suggested a more conservative allocation. Twenty-five percent chose that option, relative to 18 percent who recommended a more aggressive strategy (with 21 percent suggesting a mix and 36 percent suggesting no change; see Figure 10).
When asked about their personal investments, 29 percent of advisors say that the importance of protecting their assets has increased since 2024, while only 4 percent say that the need to protect assets has become less important, with 66 percent saying their views have not changed (see Figure 11).
Overall, the pattern of responses from advisors paints a picture of frothy optimism at a high level, coupled with fundamental concern about the implications of policy on financial security. When asked in any great detail about specific policies or about the appropriate posture to strike between conservative and aggressive investment behavior, the advisors generally display an increased preference for safety as opposed to chasing returns. Putting on a brave face despite underlying concerns may be a response to clients’ need for reassurance.
The ambivalence in advisors’ views may help explain why they do not appear to have much impact on their clients. Regression results show that the correlations between having a financial advisor, on the one hand, and the change in investors’ concern for either their investments or their financial future, on the other, are statistically insignificant in both cases (see Figure 12).
Conclusion
While policy uncertainty has been much studied, big questions remain about the impact of the apparent dramatic uptick in policy risk. Our first brief on this topic showed that near-retiree and retiree investors have grown significantly more concerned about their financial well-being since the start of 2025. Even for this sample of relatively wealthy households, the potential for substantial cuts in Social Security was the major concern. In response to these risks, a meaningful share of these groups have taken steps to protect themselves, such as increasing their emergency fund and moving to more conservative investments, and those still working have delayed their retirement date.
One resource that could help older Americans cope with the heightened level of policy uncertainty is their financial advisors. Advisors, however, seem conflicted. They are generally optimistic about the economy overall, with 47 percent saying they think that the economy is stronger since the start of 2025, and only 25 percent reporting they think it is weaker. On the other hand, advisors express concern about a broad array of developments, and most of those recommending changes for their clients suggest cautious actions, such as delaying retirement or moving to more conservative investments. The ambivalence in advisors’ views may help explain why they do not appear to have much impact on their clients’ confidence. The correlations between having a financial advisor, on the one hand, and the change in investors’ concern for either their investments or their financial future, on the other, are statistically insignificant in both cases.
References
Alexopolous, Michelle and Jon Cohen. 2015. “The Power of Print: Uncertainty Shocks, Markets, and the Economy.” International Review of Economics & Finance 40: 8-28.
Baker, Scott R., Nichola Bloom, and Steven J. Davis. 2016. “Measuring Economic Policy Uncertainty.” The Quarterly Journal of Economics 131(4): 1593-1636.
Boudoukh, Jacob, Ronen Feldman, Shimon Kogan, and Matthew Richardson. 2013. “Which News Moves Stock Prices? A Textual Analysis.” Working Paper 18725. Cambridge, MA: National Bureau of Economic Research.
Fernandez-Villaverde, Jesus, Pablo Guerron-Quintana, Keith Kuester, and Juan Rubio-Ramirez. 2015. “Fiscal Volatility Shocks and Economic Activity.” American Economic Review 105(11): 3352-3384.
Leduc, Sylvain and Zheng Liu. 2016. “Uncertainty Shocks are Aggregate Demand Shocks.” Journal of Monetary Economics 82: 20-35.
Luttmer, Erzo F.P. and Andrew A. Samwick. 2018. “The Welfare Cost of Perceived Policy Uncertainty: Evidence from Social Security.” American Economic Review 108(2): 275-307.
Munnell, Alicia H. and Gal Wettstein. 2026. “How Policy Risks Affect Retirement Planning.” Special Report. Chestnut Hill, MA: Center for Retirement Research at Boston College.
Shoven, John B., Sita Slavov, and John G. Watson. 2021. “How Does Social Security Reform Indecision Affect Younger Cohorts?” Working Paper 28850. Cambridge, MA: National Bureau of Economic Research.
Endnotes
MONTGOMERY, Ala. (WSFA) – April is Financial Literacy Month to raise public awareness of the importance of smart money management habits. The goal of this month is make sure everyone has the knowledge and skills needed to make informed financial decisions.
Whether you’re just beginning your financial journey or already managing your budget, savings, and investments, this month is designed to strengthen your financial foundation, and help you understand how small changes today can lead to long-term financial success.
Studies show that financial literacy is directly linked to higher savings rates, lower levels of high-interest debt, and better financial decision-making.
But financial education remains inconsistent across the country. Personal finance is a leading cause of stress in relationships, and many young adults graduate without the financial skills they need to manage credit, debt, and savings. So, improving financial literacy can lead to greater financial stability and long-term success.
Creating greater financial wellness is a key component of Regions Bank’s community engagement strategy.
Regions provides easily accessible, no-cost financial education courses to anyone, whether they’re a Regions customer or not, with customized tools, online resources, webinars, podcasts and in-person sessions covering topics ranging from budgeting, to saving and understanding credit, to insights for small-business owners, college students and people planning for retirement — and every life event and milestone in between. Find more about Regions Next Step on the bank’s website.
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