{"title":"From the Executive Editor","authors":"Stephen M. Horan","doi":"10.1002/cfp2.1153","DOIUrl":"10.1002/cfp2.1153","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"5 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-11-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77396721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
John R. J. Thompson, Longlong Feng, R. Mark Reesor, Chuck Grace, Adam Metzler
{"title":"Measuring the gap between elicited and revealed risk for investors: An empirical study","authors":"John R. J. Thompson, Longlong Feng, R. Mark Reesor, Chuck Grace, Adam Metzler","doi":"10.1002/cfp2.1151","DOIUrl":"10.1002/cfp2.1151","url":null,"abstract":"<p>Financial advisors use questionnaires and discussions with clients to determine investment goals, elicit risk preference and tolerance and establish a suitable portfolio allocation for different risk categories. Financial institutions assign risk ratings to their financial products. Advisors use these ratings to categorize products into the same risk categories used for portfolio allocation. Subsequently, clients select a portfolio of assets whose risk profile we call revealed risk. This paper proposes a novel methodology for comparing an individual's elicited and revealed risk. We propose using Value-at-Risk to measure elicited and revealed risk and the discrepancy between them, showing whether clients are over-risked or under-risked. We demonstrate the methodology using a dataset from a Canadian private financial dealer. We find that elicited risk is consistently higher than revealed risk–advisors build a safety buffer into their recommendations–and elicited risk varies with respect to demographic features and trading behaviors in expected ways–investors are receiving sound advice. This risk discrepancy could be used, for example, to gauge the quality of financial advice an individual is receiving, or it could be used to help advisors communicate inconsistencies between client trading actions and client goals. Our methodology falls into the interest realms of advisors, regulators, and dealerships.</p>","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"5 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/cfp2.1151","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79570694","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Save more with less: The impact of employer defaults and match rates on retirement saving","authors":"David Blanchett, Michael Finke, Zhikun Liu","doi":"10.1002/cfp2.1152","DOIUrl":"https://doi.org/10.1002/cfp2.1152","url":null,"abstract":"<p>Employers control two primary levers that can motivate retirement savings among defined contribution plan participants—default savings rates and match rates. Setting a higher default savings rate can increase plan contributions among passive savers who accept the default. A higher match rate incentivizes active savers to increase contributions. This study uses a large sample of defined contribution participants to estimate the interaction between employer match and default rates on savings outcomes among new participants. Selecting a higher default rate has the largest impact on employee savings rates. Plans with low default savings rates that match a high percentage of employee earnings induce higher-income participants to actively move away from the low default savings rate, resulting in a wider savings gap between higher- and lower-income employees. When employees are defaulted in at a higher rate, fewer move away from the default savings rate and the default investment choice (e.g., a target-date fund). A higher default savings rate results in higher and more equal savings rates among employees, and higher acceptance of professionally managed defaults investments.</p>","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"5 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/cfp2.1152","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"137695083","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Priorities and challenges: Wealth management and financial planning among affluent Black families","authors":"Fenaba R. Addo, Keith Beverly","doi":"10.1002/cfp2.1148","DOIUrl":"https://doi.org/10.1002/cfp2.1148","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"18 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80714626","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Banks retail clients' profiles and the gender gap in subjective financial literacy of spouses","authors":"M. Broihanne","doi":"10.1002/cfp2.1149","DOIUrl":"https://doi.org/10.1002/cfp2.1149","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"9 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-09-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75224254","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effects of Consumers' Defined Contribution(DC) Retirement Pension Management Capability and Psychological bias on Management Behavior","authors":"Kyoungyoung Jang, Hyun cha Choe","doi":"10.36029/fpr.2022.08.15.3.79","DOIUrl":"https://doi.org/10.36029/fpr.2022.08.15.3.79","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87709750","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Analysis of Financial Characteristics of Young Employees and Policy Proposals for Personal Finance","authors":"J. Lee, Hyoung-Goo Kang, Suk-hwan Kim","doi":"10.36029/fpr.2022.08.15.3.1","DOIUrl":"https://doi.org/10.36029/fpr.2022.08.15.3.1","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"48 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75784544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Study on the Ownership of Housing Assets and the Sufficiency of the Old-age Income by Income Quintiles of the Elderly Generation","authors":"Hyeyoun Baek","doi":"10.36029/fpr.2022.08.15.3.55","DOIUrl":"https://doi.org/10.36029/fpr.2022.08.15.3.55","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"42 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88236739","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A Study on the Social Capital and Financial Health of Households","authors":"Xingyu Zhao, Minjung Kim","doi":"10.36029/fpr.2022.08.15.3.29","DOIUrl":"https://doi.org/10.36029/fpr.2022.08.15.3.29","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"67 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74325580","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The relationship between parents' personality traits and leaving unequal bequests to children","authors":"M. Sommer, HanNa Lim","doi":"10.1002/cfp2.1147","DOIUrl":"https://doi.org/10.1002/cfp2.1147","url":null,"abstract":"","PeriodicalId":100529,"journal":{"name":"FINANCIAL PLANNING REVIEW","volume":"44 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2022-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84584879","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}