Data & Research August 31, 2011

Politics More to Blame than Markets for Drop in Confidence

Spectrem Group reports that its Spectrem Affluent Investor Confidence Index fell nine points in August to -18, its lowest level in a year.  
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Spectrem also keeps track of millionaires with the Spectrem Millionaire Investor Confidence Index, which fell four points to -9, considered to be a neutral level.   

The decline brings the affluent index, which measures the investment confidence and outlook of households with $500,000 or more in investable assets, to its lowest level since August 2010, when it stood at -20. Spectrem sees this as being in mildly bearish territory, down from neutral in July.

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“This truly tumultuous month for the stock market has clearly unnerved America’s affluent investors, who have focused their attention on the political environment and market conditions,” said George H. Walper, Jr., President of Spectrem Group.

In response to an open-ended question about the news story most affecting their economic outlook, affluent investors in August cited: the political environment (28%); stock market conditions (12%); unemployment (10%); the economy (9%); the deficit (8%); international problems (7%), and gas and oil prices (1%).   Those citing the political environment rose from 17% in May 2011 (the last time this question was asked), and those citing stock market conditions rose from 3%.

Millionaires were more focused on the political environment (32%) than the affluent and were equally focused on unemployment (10%).

The Spectrem Affluent Investor Confidence Index is based on 250 monthly email interviews with the financial decision-makers in households with $500,000 or more in investable assets. The Spectrem Millionaire Investor Confidence Index is based on a subset of the overall survey group.

Products August 31, 2011

New Mobile Technology Helps Participants with Retirement Planning

Developed by Left Coast Solutions and iGate Patni, iJoin is a mobile software program for 401(k) plan participants that leads them through the retirement planning process.   
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iJoin has been in pilot phase since December 2010 and 200 workers have been participating from eight companies across the country, in industries ranging from professional firms to farming equipment and manufacturing, the companies said.

The program provides a personalized analysis of a worker’s retirement situation, according to Left Coast Solutions. Participants can use their own smartphone or a supplied mobile device, and are led through an interactive decision-making process. Using applied behavioral finance techniques, iJoin helps participants answer questions such as:

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  • How much must they save for retirement to replace their monthly income?
  • If they are not on track to achieve their monthly income goal, what they can do to achieve the desired goal?
  • Based on their individual preferences, what are some suitable investments?

Left Coast Solutions recommends that iJoin is used in conjunction with a financial adviser, to help analyze the situation and provide solutions.  At the end of a session, a retirement planning report is emailed to each participant.

The company says that the pilot phase has had successful results, including:

  • 97% chose to participate in their company retirement plan compared to industry average of 78.8%
  • 68% selected a higher contribution percentage than what they were currently deferring
  • Workers increased their savings or deferral rate resulting in a 10.6% average deferral rate compared to industry average of 7.5%

"The mission of iJoin is to improve the retirement security of millions of American workers who are depending on 401(k) plans to generate needed income once they stop working. Mobile technology is a game changer. By partnering with financial advisers, iJoin offers a turnkey technology solution and consistent guidance process that dramatically improves individual retirement outcomes," said Fred Greenstein, CEO, Left Coast Solutions, Inc.

For more information, go to: http://www.ijoinplan.com/

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