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Financial Finesse Releases Report Illuminating the New American Workforce’s Shifting Priorities and Expectations and How Employers Must Adapt

Financial Finesse Releases Report Illuminating the New American Workforce’s Shifting Priorities and Expectations and How Employers Must Adapt
PR Newswire
EL SEGUNDO, Calif., June 21, 2022

“Hustle culture” is over: The New American Workforce, led by…

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Financial Finesse Releases Report Illuminating the New American Workforce's Shifting Priorities and Expectations and How Employers Must Adapt

PR Newswire

"Hustle culture" is over: The New American Workforce, led by Millennials and Gen Z, is demanding balance, meaning, and a life well-lived right now (vs. waiting for retirement).

EL SEGUNDO, Calif., June 21, 2022 /PRNewswire/ -- Financial Finesse, the leading independent provider of omnichannel workplace financial wellness coaching benefits, today released its 2021 Financial Wellness Year in Review which digs into changing views about financial wellness and traditional retirement planning set off by the pandemic, WFH, higher prices, rising interest rates, and other factors.

We're experiencing a workplace revolution. Emboldened employees are demanding more from employers.

"We're experiencing a workplace revolution. Emboldened employees are demanding more from employers. They want flexible, wellness-conscious workplaces that support them as whole people, including their mental, physical, and financial health, and they are willing to change jobs for the right culture and benefits," said Financial Finesse Founder and CEO, Liz Davidson. "A recent study found that more than half of jobseekers now consider health and wellness benefits a "must-have" before accepting a new role – up 100% since the start of the pandemic.1 Another found that 86% of employees said financial well-being benefits impact their desire to stay with their employer.2"

"Over the last ten years, much of the focus in the financial wellness space has been on retirement preparedness but employee views are changing. A recent survey found that 84% of employees are more focused on becoming financially independent than on achieving a traditional retirement3," says Greg Ward, CFP® and Director of the Financial Finesse Financial Wellness Think Tank™. "These incongruous macro trends led us to investigate changes in employee behaviors and concerns over the last three years [2019-2021]."

A bellwether for what's to come, the analysis revealed incremental but telling shifts in financial wellness priorities and actions: away from retirement and toward more immediate financial concerns:

  • Younger employees are stressed: Among Millennial and Gen Z employees, 81% are experiencing some level of financial stress and 40% are uncomfortable with their debt.
  • Employees prioritized financial resilience: The percentage of financially resilient workers (defined as having a handle on cash flow, being comfortable with debt, paying credit card balances in full, and maintaining an emergency fund) improved from 34% in 2019 to 40% in 2021.
  • Improved resilience came at a price: While overall Financial Wellness Scores held steady at 5.3 (on a 10.0-point scale), improvements in Cash Flow and Debt Management (immediate concerns) were offset by declines in Retirement, Insurance, and Estate Planning (future concerns).
  • Focus on retirement cooled: Among employees who completed a financial wellness assessment for the first time, a proxy for Americans overall, the percentage contributing to their workplace retirement plan dropped by 8%. The percentage "concerned about retirement planning" dropped by 6%.

"For employers looking to attract and retain talent, through The Great Resignation and beyond, offering in-demand financial wellness coaching benefits is often the solution hiding in plain sight," continued Davidson. "Once a nice-to-have, a quality benefit that provides every single employee with unlimited access to digital and human-based financial coaching and that has been proven to reduce financial stress and increase financial resiliency is now a must for competitive employers. Financial wellness coaching benefits are a strong differentiator and, for many employees, a life-changer."

"For employers already offering our digital and human-based financial coaching, the results have been extraordinary," adds Ward. "As expected, the more channels employees engage with, the better the outcomes. Among employees who have engaged online, participated in group learning, and worked with a Financial Coach, we've seen a 36% increase in workers who are financially resilient – a huge win for both employers and employees." In addition to program results like this one, the report offers employers an analysis of emerging trends and actionable recommendations to better support employees.

For more information: 
Download the full "2021 Financial Wellness Year in Review" here.
Download a Q&A on the Year in Review with Financial Finesse founder and CEO, Liz Davidson, here.
View a short Financial Finesse brand video here.

About Financial Finesse:

Financial Finesse is the country's leading independent provider of unbiased workplace financial wellness coaching benefits. Since 1999, the firm has helped over 10,000 organizations improve their bottom lines and become more competitive by empowering their employees to achieve financial security. The company's award-winning digital and human-based financial coaching is made available to employees at no cost as an employer-sponsored benefit. With highly personalized and ongoing one-on-one coaching from CFP® professionals via phone and live chat, AI-powered virtual coaching, live workshops, webcasts, educational tools, and content, Financial Finesse reaches over 2.4 million individuals every year. www.financialfinesse.com

1Metlife. 2022. "The Rise of The Whole Employee". 2SoFi. 2022. "The Future of Workplace Financial Well-Being". 3Franklintempelton.com. 2021. "Voice of The American Worker Survey".

Contact: Maggie Weinberg, Financial Finesse
Email: maggie.weinberg@financialfinesse.com
Cell: 917.370.2220

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Economics

Housing Affordability Index Drops To Lowest Rate Since 1989, Still Way Too High

Housing Affordability Index Drops To Lowest Rate Since 1989, Still Way Too High

Authored by Mike Shedlock via MishTalk.com,

The National…

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Housing Affordability Index Drops To Lowest Rate Since 1989, Still Way Too High

Authored by Mike Shedlock via MishTalk.com,

The National Association of Realtors says "affordability" dropped to 98.5 in June, the lowest since 1989.

Housing Affordability Index and mortgage rates via St. Louis Fed.

Affordability in June Was the Worst Since 1989

The Wall Street Journal reports Affordability in June Was the Worst Since 1989

It was more expensive to buy a U.S. home in June than it has been for any month in more than three decades, as record-high home prices collided with a surge in mortgage rates.

The National Association of Realtors’ housing-affordability index, which factors in family incomes, mortgage rates and the sales price for existing single-family homes, fell to 98.5 in June, the association said Friday. That marked the lowest level since June 1989, when the index stood at 98.3.

Housing Affordability Index

The NAR's Housing Affordability Index is based on median income data current  through 2017, projected forward. 

Only 13 months of data is available on Fred, the St. Louis Fed repository.

Affordability is based on whether the median family earns enough income to qualify for a 30-year fixed mortgage loan on the median single-family home without spending more than 25% of the income on payment for principal and interest.

An index value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 means a median family has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment. 

Inquiring minds may wish to look at the NAR's Housing Affordability Index Calculations.

Curiously, the NAR concludes the median household can nearly always afford the median home price.

Do you believe that? More importantly, even if accurate, so what? 

The median person who can afford a home and wants a home probably already has a home. 

First Time Buyer Index

In terms of new and existing home sales, what matters is what a buyer who does not have a home, but wants a home, is willing to pay and can pay. 

The First-Time Buyer Index for 2022 Q2 fell to 68 assuming a starter home price of $351,500. 

Can 68 percent of would-be buyers afford (and find) a $351,500 home in a neighborhood in which they want to live? 

68 percent is a much more reasonable number than the overall 98.5 percent calculation, but that still strikes me as too high. 

Case-Shiller National Home Price Index

I have not updated my full set of Case-Shiller home price charts for a while but that chart is current (May data). 

Case-Shiller lags by a few months so it's even worse than shown. 

The pre-pandemic index was 212 and it's now 306. That's a 44 percent jump with real median wages declining, property taxes soaring, food soaring, and energy soaring.

Yet, the NAR says that median overall affordability has declined only to the 98.5 percent level. Yeah, right.

Meanwhile, rent and food keep rising and the price of rent will be sticky. Gasoline is more dependent on recession and global supply chains.

Food Prices Rise Most Since February 1979

For more on the price of food, please see Food at Home is Up 13.1 Percent From a Year Ago, Most Since February 1979

For more on rent, please note Tennant's Unions Demand Biden Declare a National Emergency to Stop Rent Gouging

For more on producer prices please see Producer Prices Decline For the First Time Since the Pandemic Due to Energy

Spotlight on Fed Silliness

The Fed has blown three consecutive bubbles trying to produce two percent consumer inflation while openly promoting raging bubbles in assets especially housing.

*  *  *

Please Subscribe to MishTalk Email Alerts.

Tyler Durden Sun, 08/14/2022 - 12:30

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Economics

Summer Teen Employment

Here is a look at the change in teen employment over time.The graph below shows the employment-population ratio for teens (6 to 19 years old) since 1948.The graph is Not Seasonally Adjusted (NSA), to show the seasonal hiring of teenagers during the sum…

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Here is a look at the change in teen employment over time.

The graph below shows the employment-population ratio for teens (6 to 19 years old) since 1948.

The graph is Not Seasonally Adjusted (NSA), to show the seasonal hiring of teenagers during the summer.

A few observations:
1) Although teen employment has recovered some since the great recession, overall teen employment had been trending down. This is probably because more people are staying in school (a long term positive for the economy).

2) Teen employment was significantly impacted in 2020 by the pandemic.

Click on graph for larger image.

3) A smaller percentage of teenagers are obtaining summer employment. The seasonal spikes are smaller than in previous decades. 

The teen employment-population ratio was 38.4% in July 2022, down from 38.9% in July 2021. The teen participation rate was 43.6% in July 2022, down from 43.8% the previous July. 

So, a smaller percentage of teenagers are joining the labor force during the summer as compared to previous years. This could be because of fewer employment opportunities, or because teenagers are pursuing other activities during the summer.

3) The decline in teenager participation is one of the reasons the overall participation rate has declined (of course, the retiring baby boomers is the main reason the overall participation rate has declined over the last 20+ years).

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Economics

Braxia and KetaMD, CEOs McIntyre and Gumpel Speak on Acquisition

Last week, the Canadian company Braxia Scientific acquired 100% of the issued and outstanding stock of KetaMD, Inc. This is an exciting acquisition, and…

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Last week, the Canadian company Braxia Scientific acquired 100% of the issued and outstanding stock of KetaMD, Inc. This is an exciting acquisition, and in today’s interview, The Dales Report’s Nicole Hodges talks with CEOs Dr. Roger McIntyre and Warren Gumpel of Braxia Scientific and KetaMD respectively.

For some background information, KetaMD is a U.S. based, privately-held, innovative telemedicine company, with a mission to address mental health challenges via access to technology-facilitated ketamine-based treatments. Braxia Scientific is Canada’s first clinic specializing in ketamine treatments for mood disorders. They recorded revenue of $1.49m for 2022 fiscal year, ended March 31. On a year-over-year basis, revenue increased 47.5%.

Here’s some highlights from the interview.

KetaMD gives Braxia a presence in the US

Dr. McIntyre says that KetaMD gives Braxia what they’ve had as their vision from the beginning: a US presence. KetaMD is a living program. It’s already running, has infrastructure, and patients. McIntyre believes that a program like KetaMD is something Braxia’s needed to scale and obtain commercial success.

With telemedicine, Braxia has a potential to serve a gap in access. The zeitgeist of “patient going to medicine” has flipped, McIntyre says. “Now it’s medicine goes to the patient, and that is long overdue.”

COVID speeding a trend that was already happening

In 2020, 80% of physicians indicated they had virtual visits. That’s a number up from 22% the year before. But this is something that many doctors, McIntyre included, believe always should have happened. The pandemic only was the catalyst for innovation and making the option viable.

While some treatments will always need a clinic or a hospital, McIntyre believes some treatments can be done safely at home. And they are, for many chronic diseases. He feels implementing ketamine and psychedelics would be among these treatments where service could be expanded into the home. It would require careful SOPs in place, best practices, and surveillance. But he believes Braxia Scientific could deliver this with KetaMD.

Gumpel to stay as CEO of KetaMD

Gumpel says that KetaMD benefits in this acquisition from being part of the world’s most prominent researchers in depression, psychedelics, and ketamine. In the acquisition, he’ll stay on as CEO. He admits that Dr. McIntyre has been a huge part of collecting the data on the safety of ketamine treatment, and has a strong motivation to “see this thing through until most of society can access that – or at least the people that need it and want it.”

Gumpel admits he has a personal connection to ketamine treatment. As a person who has experienced bouts of depression for years, it saved his life, he says. He is grateful he was living within walking distance of ketamine treatment in Manhattan. It made him extremely aware of the accessibility gap, which in part inspired KetaMD.

Be sure to tune in for the full interview regarding Braxia and KetaMD, right here on The Dales Report!

The post Braxia and KetaMD, CEOs McIntyre and Gumpel Speak on Acquisition appeared first on The Dales Report.

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