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.
James Pruskowski is the CIO and co-founder of 16Rock, a full-service asset management firm specializing in Municipal Bonds. He leads the firm's flagship 16Rock Municipal Opportunities Fund LP, a long-short hedge fund, as well as the firm's long-only Separately Managed Account (SMA) client business.
Mr. Pruskowski spent nearly three decades at BlackRock starting in 1994 shortly after the firm was founded, when it had only 50 employees and $25 billion in assets under management. He was a Managing Director, Portfolio Manager, and Head of Municipal Bonds, Institutional & Wealth Management. Mr. Pruskowski was a member of the management committee and led a team of 58 investment professionals, driving strategic growth initiatives and innovation. He has a proven track record over multiple investment cycles and award-winning performance.
Before focusing on municipal bonds, Mr. Pruskowski was a multi-sector taxable fixed income portfolio manager. He was instrumental in launching BlackRock's Financial Institutions Group, which has grown into the world's leading insurance asset management business. He provided a wide array of services in balance sheet management, analytics, capital markets, and portfolio construction to banks, insurance companies, and official institutions worldwide. Mr. Pruskowski began his career in Risk & Quantitative Analytics as a risk analyst and programmer, playing a key role in the development of what is now known as BlackRock Solutions.
Mr. Pruskowski is a thought leader and content expert, known for his diverse skills, experience, and energetic, detail-oriented, and structured approach. His hands-on, can-do attitude drives results. As an industry advocate with strong brand awareness, he frequently speaks publicly, engages with the media, and collaborates with clients. He possesses a unique talent for understanding, designing, and clearly explaining markets and complex concepts in an accessible manner.
Paul Wnek is founder, CEO and principal solutions architect at ExpandAP, a 14x certified Salesforce B2B solutions architect, founder and CEO of Coalescence Cloud (Salesforce Consulting Partner) and Salesforce certified AI associate.
Hagit Levy-Shalev is an associate professor in the Stan Ross Department of Accountancy in the Zicklin School of Business at CUNY's Baruch College.
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.
