Tag Archives: Surveys

More work required on Estate Planning

New Survey: Same sad stats on Estate Planning & Wills

Different year: Same sad stats on Estate Planning & Wills 

PWC’s Employee Financial Wellness Survey tracks the financial & retirement well being of working adults across the US. For 2014, the survey included 2,100 full-time employees between the ages of 21-32(Gen Y), 33-53(Gen X) and 54-71(Baby Boomers)

With reference to Estate Planning, the survey showed that there is very little progress being made:

Overall, only 40% of employees have a will. This compares to 41% in 2013 & 37% in 2012. The % of those who have a will increases with age, only 51% of those age 55 to 64, have a will.

Here’s the breakdown:

  • Baby Boomers (59%),
  • Gen X (31%)
  • Gen Y (20%)

Of those employees who have a will,:

  • 66% say they have reviewed it and made any necessary updates within the last 5 years.
  • 34% of employees have a living will.
  • 29% have a durable power of attorney for financial matters and 30% for healthcare matters.
  • 75% indicate that their beneficiary forms are up-to-date

Read more of the survey results from PWC’s survey here 

LegacyTracker provides a simple, secure way for individuals & families to safeguard all of their important documents & information. Built in alerts & reminders …can include reminders that estate planning items are missing. LegacyTracker is a white label product perfect for Financial Service Organizations & Providers who will recognize the WIN/WIN benefit of offering a branded personal financial/estate organizing solution to their clients and account holders. LegacyTracker is also a solution that Employers or Membership based organizations can offer to their employees and members.

Connect with us for more information

2013 Extreme Weather events added up to Extreme Insurance Claims

2013 was certainly a year for Extreme weather events

The Insurance Bureau of Canada released their findings in January of this year on the impact severe weather in Canada in 2013 had on insurance claims. The weather was EXTREME and so were the CLAIMS as summarized in this Infographic 

Companies paid out $ 3.2 BILLION  to policyholders. That’s almost a $ 1.2 billion increase from the previous high. That makes for 5 years in a row of natural disaster losses for the insurance industry that hit the $1 billion mark.

“In 2013, the terrible effects of the new weather extremes hit Canadians hard. From the Alberta floods last summer to the ice storms in Ontario and Atlantic Canada over the holidays, frankly, bad weather hit insurers hard, too,” says Don Forgeron, President and CEO, IBC.

The largest insured disaster – and Canada’s costliest natural disaster ever – was the June 2013 torrential rainfall that flooded towns in southern Alberta.  Insured damage for that storm was more than $1.74 billion. The flash flooding that hit Toronto in July resulted in $940M in damages; the most expensive insured natural disaster in Ontario’s history

And then of course, there were the December ice storms that hit southern Ontario and eastern Canada. Some $200 million in claims were made for homes damaged by trees that fell as a result of ice buildup. Ontario-based insurers also paid more than $25 million in claims for vehicles damaged in that storm

As Mr. Forgeron also points out “Canadian communities are seeing more severe weather, especially more intense rainfall. This overburdens our sewer and storm water infrastructure, resulting in more sewer backups in homes and businesses, Property and casualty insurers are collaborating with all three levels of government to help Canadians adapt to these new weather realities,” 

All of us should also adapt to these new weather realities by enhancing our level of emergency preparedness..

That’s a core mission behind LegacyTracker 

 

The Boom for Financial Tech around the World

 Global Fin Tech Investments hit $3 Billion in 2013

Accenture’s newly released 16 page report  ‘The Boom in Global Fin Tech Investment’ highlights that:

  • Global fin tech financing has tripled over the past five years
  • Silicon Valley based companies account for 1 of every 5 Fin Tech deals and 1/3 of funding allocated to Fin Tech
  • Europe accounts for 13% of all Fin Tech funding globally/15% of all global deals
  • However, London is now outpacing Silicon Valley on the basis of 5 year growth
  • The UK (specifically London) and Ireland-based companies taking the lion’s share of Europe’s Fin Tech deals.
  • The UK and Ireland represented 53% of Europe’s Fin Tech deals and more than 2/3 of Europe’s Fin Tech funding at 69%

Accenture on fintech

To get Accenture’s 16 page report go here 

 

Financial Tech Habits of Baby Boomers

Behold yet another interesting infographic…this one on the Financial Technology Habits and the Finances of Baby Boomers compliments of emoneyadvisor.com.

No surprise, this is a US survey but luckily Canadians have much in common with our friends to the South…so we think this information is likely similar to Canadian habits and estimates.

First things first. We all know that Baby Boomers (those born between 1946 and 1964) are an important demographic. How important?  While Baby Boomers make up approximately 26% of the US population (82M people in the US), they represent 70% of disposable income and earn an average income of $50K or so a year. Their average net worth is approximately $727K. Further 46% of boomers have savings or investments exceeding $50K  & 20% having savings or investments exceeding $250K.

So yes. An important market  and yet:

  • Only 54% of Baby Boomers have a personal financial plan
  • Only 34% of Baby Boomers have a comprehensive financial plan and
  • Approximately 48% don’t have a financial advisor

As for emoneyadvisor’s surveyed facts on how Baby Boomers are using Technology…It turns out that this age demographic is keeping up (quite nicely) to younger generations after all.    (I know I’m trying hard). Baby Boomers actually spend more money on technology  than any other age group (an average of $650/month) AND Boomers have a high adoption rate for online financial management tools. 57% bank online. 35% pay bills online. 41% research financial information online. It should be of no surprise to also find that approximately 70% of this same age group buy online.

Indeed, this Infographic seems to sum it up all up and tie these survey results together quite nicely for us.   …Baby Boomers are in need of financial advise and they are ready for technology driven financial applications to help simplify their lives. It makes sense to us that A financial advisor that offers a technology driven financial application will provide Advisors/Clients (or Potential Clients) a win/win scenario. But that’s only the beginning of the Win/Win.
Fin Tech Habits of Boomers

The Financial & Emotional Benefits of Fully Engaged Bank Customers

Gallup (the research, polling and advice organization) has been writing a lot about the shifting landscape for financial institutions and their insights into channel optimization, emerging customer behaviors/ preferences, product penetration and relationship growth, & generally…engagement.

There are tangible benefits to be gained when clients are fully engaged (or loyal and emotionally attached) with their financial Institution and I’m betting that the same should apply to financial Advisors.  I will let you decide. The tangible benefits relate to Increased Revenue/Wallet Share and Product Penetration

Based on their November 2013 survey on Retail Banking, they reported that fully engaged customers bring in $402 additional revenue per year compared to those who are ‘disengaged’  For those clients who could be identified as Affluent ($100K to $1M in investable assets), the value is closer to $869 additional revenue.

Now you just have to multiply that by the number of your banking customers who could be “engaged”

Fully “Engaged” customers behave differently:

  1. 10% greater wallet share in deposit balances
  2. 14% greater wallet share in investments
  3. Twice the number of discretionary category add-ons investment, insurance, or advisory products with their primary bank)
  4. Greater Purchase Intent that is, a stronger intent to purchase from their primary institution over the next year
  5. 71% believe that they will be with that financial institution for life

Gallup on Fully Engage Customers 2

Fully engaged customers and clients are more likely to say they will open new accounts, switch an account from another financial provider, increase their balances, add ancillary products and services, or obtain financial planning advice than are those customers who are just satisfied.

Engagement Matters. Customer Satisfaction is good but Customer Engagement is much better. Engagement results in a tangible financial difference. How engaged are your clients ? How can you help them become more engaged ?  LegacyTracker

Read more here

Millennials would rather go to the dentist than listen to what banks are saying

 

It’s true according to a 3 year study by Scratch  (an in-house media unit of Viacom) on industry disruption called the  “the millennial disruption index” (MDI) . The study surveyed more than 10,000 Millennials (those born between 1981-2000) about 73 companies spanning 15 industries in order to identify the industries most likely to be transformed by millennials…and the answer they found was banking.

“I don’t see the difference between my bank and all the others”

Specifically:

  • 53% don’t think their bank offers anything different from other banks
  • 1 in 3 are open to switching banks in the next 90 days
  • 33% believe they won’t need a bank at all in the future
  • Nearly half are counting on tech start-ups to overhaul banking
  • 73% would be more excited about a new offering from Google, Amazon, Apple, Paypal or Square than from their own nationwide bank

And yes,  71% would rather go to the dentist than listen to what their banks are saying

The surveyed millennials believe innovation will come from outside the industry

Millennial Disruption Index by Scratch

 

 

 

What are your digital assets worth?

McAfee the online security organization has commissioned a few surveys over the years that show the growing value of digital assets. Their research in 2011 (provided by MSI International) surveyed more than 3,000 consumers across 10 countries and shows varying values of digital assets.

mcafee-unprotected-digital-assets

Digital Assets? They include music and video downloads, software programs, photos, career info, personal records, email etc.

Canadians estimated their digital assets on average to be worth $47,074 which is slightly behind Americans ($54,722) and ahead of the UK ($38,360). McAfee’s study also suggested that it would take an average of some 82 hours for most of us to restore our digital assets if lost. That would be the estimate if we were alive. If we are not alive…it’s anyone’s guess if they could be restored at all. Digital assets/Digital passwords need to be backed up and shared somewhere safe

In 2013, they released a new survey specific to Canadian consumers’ attitudes towards online surfing, web security and data protection.  This survey showed Canadians placing a value of $32,000 on the digital assets stored on their devices (not sure why the decrease from the earlier study) This study showed that most of us are not taking appropriate precautions to back up and safeguard our digital assets.

Protecting online assets needs to be made more of a priority for our families and that will come from education and having a good handle on secure technology.

mcafee-digital-assets-canadMcAfee Cares is an Online Safety for Kids program which hopes to train school aged children and adults on ways to stay safe, secure and maintain good ethics in online behaviour.  You can learn more about their program here http://mcafee.com/onlinesafety.

LegacyTracker has made provisions for safeguarding your digital assets

BMO study finds many Canadians unaware what investments they hold

A BMO study released in April 2012 made note of these results:

Approximately 80 % of Canadians were confident in their investment portfolio, but …..nearly 50% were unaware what investments they actually had..

Many not aware of their investments

BMO made these suggestions when they released the report:

  • The key is to monitor and add to your investments all year round.
  • Consistently examine your portfolio to make sure that diversification exists between stocks, bonds, cash and real-estate
  • Look to the long-term instead of the short-term as often times, Investors are scared by volatile markets and focus on the potential for short term-loss
  • The best fix includes consolidating your assets to keep track of where your money is being held.

As an accountant, I know first hand that many of my clients when I was in public practice were (and most likely are still) part of these stats. I know because I opened up a lot of their mail each April in order to prepare their tax returns (!) It’s one of the many reasons that I felt the need to develop LegacyTracker.

LegacyTracker can help you with these suggestions. Legacy Tracker offers individuals and families a simple, comprehensive and common sense online solution for monitoring, tracking, sharing and safeguarding important financial, legal and estate information.