Financial satisfaction of people in the U.S. rebounded strongly in the third quarter of the year, according to a new survey by the American Institute of CPAs, reversing the lows in the second quarter in the midst of the recession brought on by the novel coronavirus pandemic.
The AICPA’s Q3 2020 Personal Financial Satisfaction Index measured 33.1, representing a whopping 99 percent (16.5 point) increase from the previous quarter. That’s the biggest quarterly increase in the 27-year history of the PFSi, and a complete turnaround from the second quarter, when the index had its largest ever quarterly drop.
Jordan Birnbaum has been with ADP since 2015, as vice president and chief behavioral economist. He directs the application of behavioral economics principles into new product development in the human capital management market. Prior to joining ADP, he was the owner/operator of The Vanguard in Los Angeles, a hybrid media production and live music venue, employing more than 150 people for close to a decade. He was a founding employee and senior vice president of business development of Juno Online Services, playing a key role in a successful IPO and then beating analysts’ estimates for six consecutive quarters. Jordan graduated from Cornell University with a BS, Policy Analysis, and from NYU with an MA in Industrial / Organizational Psychology.
Deb is highly respected throughout the insurance industry for strategic thinking, thought provoking research, and advisory skills. Insurers and solution providers turn to Deb for insight and guidance on business and IT linkage, IT strategy, architecture, and eBusiness. Those seeking an edge in today's highly competitive world turn to Deb to capitalize on her deep industry knowledge and experience and her specialized understanding of distribution and underwriting automation.Deb has held leadership roles in premier insurance companies, professional services firms, and research advisory organizations, where she consistently demonstrated the ability to find new ways to leverage technology to achieve optimal business outcomes. Her skill set includes linking business strategy to IT strategy; development of business and IT road maps; selection, shaping, and delivery of enterprise/core solutions; and implementation of right-sized governance models.Prior to founding SMA, Deb served as Chief Transformation Officer for Insurance Company of the West (CIO) where she was recruited to deliver as much IT functionality to the business operations as possible in the least amount of time. Deb led company-wide change that included developing and integrating the corporate business strategies into 5 Strategic Initiatives. Before joining ICW, Deb launched and served as Managing Director of TowerGroup's Insurance Research & Consulting Practice. As a Partner at KPMG LLP, she launched an IT consulting practice specializing in the assessment and management of IT risks. She began her career at Liberty Mutual, where she directed a variety of large-scale system development projects and rose to leadership of the commercial lines application development group.Deb's expert opinion and counsel is in demand by press, clients, and major industry events. She is a frequent contributor to leading insurance trade journals and has been a keynote speaker at major conferences such as ACORD/LOMA Forum, NAMIC, ISOTECH, and IASA. Deb is a graduate of the University of New Hampshire with a B.S. in Business Administration.
Derek Rine is the benefits practice leader at David Rine Insurance.
The PFSi is built around various factors, including the labor market. The gains can be mainly attributed to improvements in job openings per capita and underemployment. Those had the biggest impact on increasing the overall PFSi. The biggest factor driving the quarter-over-quarter rally was a 35 percent (37 point) decrease in underemployment. A decrease in underemployment improves overall financial satisfaction in the index. While there was an improvement in underemployment in the third quarter from Q2’s record high, it’s still 117 percent above its level a year ago. For the second consecutive quarter, underemployment is still the biggest negative contributor to the average American’s personal financial satisfaction. The Q3 underemployment level reflects data measured through the middle of September.
“As Americans continue to navigate the economic impact of the COVID-19 pandemic, it is important to remember that the fundamentals of financial planning haven’t changed,” said AICPA PFS Credential Committee chair Dave Stolz in a statement Thursday. “Though the stock market’s record performance is encouraging, 2020 has served as a reminder of the volatile nature of markets. As the impact of COVID-19 continues to play out across the country, investors should weigh their risk tolerance and ensure they have ample cash on hand. Further, a tax-efficient financial plan that includes a diversified portfolio can give confidence that long-term financial goals will remain within reach through this period of extreme uncertainty.”
The coronavirus put millions out of work, prompting job openings per capita to show a record plummet earlier this year. In the third quarter, job openings started to recover, climbing 37 percent (20 points) compared to Q2. That factor is now only 10 percent below its measurement a year ago before the pandemic. The Q3 index comes from July data from the U.S. Bureau of Labor Statistics.
