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Does financial well-being affect portfolio construction? Evidence from an online survey

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  • Brent J. Davis

    (Independent Researcher)

Abstract

Portfolio construction has emerged as an important topic as retirement programs are increasingly composed of defined contribution plans. Little research has investigated how an individual´s current financial well-being affects portfolio construction. Using two measures of financial well-being, I examine how individuals create hypothetical retirement portfolios using responses from an online survey. Individuals who are better able to cope with a financial emergency allocate a higher percentage to equities and less to money market funds when controlling for risk preferences and demographics.

Suggested Citation

  • Brent J. Davis, 2018. "Does financial well-being affect portfolio construction? Evidence from an online survey," Economics Bulletin, AccessEcon, vol. 38(1), pages 362-366.
    • Handle: RePEc:ebl:ecbull:eb-18-00109
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Portfolio Choice; Financial Well-Being; Behavioral Finance; Personal Finance;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • D1 - Microeconomics - - Household Behavior

    Statistics

    Access and download statistics

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