Data & Research July 7, 2015

Lower and Middle-Income Mothers Most Financially Stressed

Overall, nearly one-quarter of employees feel “high” or “overwhelming” financial stress.
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Nearly one-quarter, 23%, of employees feel “high” or “overwhelming” financial stress, up from only 18% in 2012 and 19% in 2011, according to a survey by Financial Finesse, a provider of financial education to workers.

Across all age groups, women experience significantly higher levels of financial stress than men, with the most frazzled group being women between the ages of 30 and 55 with minor children and annual incomes below $60,000. More than half, 55%, of this group feels elevated levels of financial stress. The least financially stressed group is men younger than 30 or older than 55 with no minor children and annual incomes above $100,000, with only 6% of these groups experiencing financial stress.

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“While it’s no surprise to any working mother that juggling competing financial needs is stressful, small steps over time can create financial balance for families at any income level,” says Liz Davidson, chief executive officer of Financial Finesse. Three steps people can take to alleviate financial anxiety is to build an emergency fund, pay down high-interest debt and take advantage of employer-sponsored benefits at work, namely save for retirement.

Employers have a role in helping people with financial stress as well, Davidson says. They can offer financial wellness programs to teach their workers practical money skills, she says. “Employers can offer workshops, webcasts, an online financial wellness center and one-on-one financial coaching to help simplify financial complexities and help busy employees get the most out of their benefits,” Davidson says. “A workplace-based financial wellness program saves busy parents time, and has been proven to reduce financial stress as well as create a sense of loyalty between employee and employer.”

Underscoring the need for financial wellness programs is the fact that among all employees, 85% report at least some level of financial stress, Financial Finesse says. Among those who feel overwhelming financial stress, 84% say they feel like their financial situation is not under control, 56% are not confident they will be able to meet future financial goals, 26% do not know who to trust with investing their money, and 29% worry about the U.S. economy and/or stock market and how that will affect their financial future.

Not surprisingly, those who feel overwhelming financial stress have poor money management behaviors, with only 8% of this group having an emergency fund, a mere 14% comfortable with the amount of debt they are carrying, 18% having a handle on their cash flow, 53% paying their bills on time and 34% carrying a loan or hardship withdrawal from their 401(k) plan.

The good news is that more employers are offering financial wellness programs to help their employees reduce their financial stress. The Financial Finesse survey can be uploaded here.

Deals & People July 7, 2015

LPL to Provide RPA Clients with Fee-Based Advice Services

LPL Financial has been selected to provide clients of Retirement Planning Analytics with fee-based investment advisory services.
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Retirement Planning Analytics (RPA) has chosen LPL Financial for support in providing clients with fee-based investment advisory services.

RPA, a newly formed retirement plan advisory and consulting firm based in Charlotte, North Carolina, serves nonprofits, such as ministries and faith-based organizations; professional groups, including organizations for doctors, lawyers and dentists; and businesses in a range of industries.

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RPA’s founder, Todd Timmerman, has entered into an agreement with Ronald Blue & Co. to transition client retirement plan assets to LPL’s platform while allowing Ronald Blue & Co. advisers to continue to act as the relationship managers for those clients. Ronald Blue & Co. reported that, as of Feb. 28, its advisers reported servicing in excess of $1 billion of client retirement plan assets.

Timmerman has more than 27 years of experience assisting with the retirement plans of major companies. He is joined by a relationship manager and plans to bring on two additional analysts.

RPA’s goal is to help organizations and their employees with the processes and solutions for working toward better retirement outcomes, Timmerman said in a statement. “I chose LPL because they stand out in the industry for the resources and industry leadership they bring to the retirement planning business,” he said. “Our clients will benefit from the wealth of resources now available to us.”

“At a time when the importance of retirement planning is gaining greater attention across the United States, and there is also increased complexity and regulation, we are able to support Todd and RPA as they help their clients work to achieve better outcomes for plan participants,” David Reich, executive vice president and head of Retirement Partners at LPL, said in a statement.

RPA is solely focused on retirement plan consulting, providing fee-based services to a wide range of organizations across the United States. RPA works with retirement plan committees to help mitigate their risks and improve decision-making as they carry out fiduciary duties. The firm also assists human resources and finance departments in implementing their organizations’ retirement plans, and helps employees and other plan participants engage in the retirement planning process in an effort to optimize their retirement outcomes.

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