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.
Steph Tulley is the founder and CEO of Actuology. Tulley propels sustainability and success through: innovative economic strategy, dynamic consumer knowledge, and deep industry insight. Actuology's high-paced leader builds technology to augment human interaction, and future-proof the success of her industry.A New Yorker by birth and a quasi-Nomad by nature. When she is not working, Tulley has an adventurous streak. She has been known to spend countless hours playing in the field of natural history, and extreme wildlife photography.
Dror Pockard is Chief Strategy Officer at Earnix. He has over 30 years of experience building and leading start-ups, and in senior executive roles in large global companies. His expertise lies in strategy, business development, and M&A.
Prior to joining Earnix, Dror was CEO of Colibri Spindles Ltd., a company focused on connecting Industry 4.0 manufacturing devices with the emerging Internet of Things (IoT) market. Prior to that, he was CEO of eGlue Business Technologies, a start-up in the real-time interaction/next-best-offer space. And prior to that, he was CEO of Telrad Ltd. a telecom products and services company.
Earlier in his career, Dror held several leadership roles at Amdocs Inc., including: head of their Consulting and Systems Integration Organization, and president of the CRM division. Dror also established the Israeli office of Ernst Young Management Consulting and managed it for 3 years.
Dror holds an MBA in Information Systems and a BA in Management and Economics from Tel Aviv University, Israel. He is a mentor in the Israeli Microsoft Accelerator, and is a board member of the Branco Weiss Institute and Yuvalim, two charities in the education space.
Ifty Kerzner is President and Co-Founder of Kissterra, the world's first insurance marketing operating system. A skilled tech entrepreneur in the financial service and data management sectors, Ifty's passion for business, innovation, and people led him to found several companies. Prior to his career in tech and business, Ifty was part of the Israeli entertainment industry, as both a popular singer/songwriter and host of a TV show. He holds an LLB with distinction, an M.A. in Political Science, and is also a graduate of the Lyndon B. Johnson School of Public Affairs' Leadership Program.
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.
