There was an increase in financial satisfaction for most Americans in the last three months of 2017
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There was an increase in financial satisfaction for most Americans in the last three months of 2017.
The Association of International Certified Accountants (AIPCA) has published its Personal Finances Satisfaction Index for the fourth quarter of 2017, which shows gains in finances and low unemployment pushed the index to the highest level in its 28-year history.
Real estate gains were part of the improvement for finances but home equity, while up 6.8% year-over-year and 1.7% quarter-over-quarter (based on data issued in July 2017), was still more than 15% below the 2006 peak.
The level for delinquencies on loans is 17.6% down from Q4 2016 and down 1.9% below the level in Q3 2017. All the improvements quarterly and most of those from a year ago are due to delinquencies on mortgages.
Though the current reading of delinquencies on mortgages (3.62%) is well below the peak delinquency rate for mortgages (11.26%) set in the spring of 2010, it is still above what was typical between 1994 through 2003 (2.1%).
AIPCA says that personal taxes remained the main contributor to its Personal Financial Pain Index, up 1.5% from the previous year but down 0.9% from the third quarter of 2017.
“The impact of the new tax law on individuals remains to be seen. Americans should monitor their tax situation closely this year as the withholding tables are changing and could result in under withholding of taxes,” said Lisa Featherngill, CPA/PFS, member of the AICPA Personal Financial Planning Executive Committee. “I suggest meeting with your CPA financial planner in the 2nd quarter and 4th quarter of 2018 to ensure your financial plan is maximizing the opportunities under the new law.”
The Association of International Certified Accountants (AIPCA) has published its Personal Finances Satisfaction Index for the fourth quarter of 2017, which shows gains in finances and low unemployment pushed the index to the highest level in its 28-year history.
Real estate gains were part of the improvement for finances but home equity, while up 6.8% year-over-year and 1.7% quarter-over-quarter (based on data issued in July 2017), was still more than 15% below the 2006 peak.
The level for delinquencies on loans is 17.6% down from Q4 2016 and down 1.9% below the level in Q3 2017. All the improvements quarterly and most of those from a year ago are due to delinquencies on mortgages.
Though the current reading of delinquencies on mortgages (3.62%) is well below the peak delinquency rate for mortgages (11.26%) set in the spring of 2010, it is still above what was typical between 1994 through 2003 (2.1%).
AIPCA says that personal taxes remained the main contributor to its Personal Financial Pain Index, up 1.5% from the previous year but down 0.9% from the third quarter of 2017.
“The impact of the new tax law on individuals remains to be seen. Americans should monitor their tax situation closely this year as the withholding tables are changing and could result in under withholding of taxes,” said Lisa Featherngill, CPA/PFS, member of the AICPA Personal Financial Planning Executive Committee. “I suggest meeting with your CPA financial planner in the 2nd quarter and 4th quarter of 2018 to ensure your financial plan is maximizing the opportunities under the new law.”
