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Financial Risk Attitude and Behavior: Do Planners Help Increase Consistency?

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  • Eric Park
  • Rui Yao

    (University of Missouri)

Abstract

This study is the first to evaluate the effect of sources of information on households’ consistency between their risk attitude when making savings and investment decisions and risk behavior displayed when they do save and invest. As the responsibility is being shifted to individuals to save for their own financial future, it is important that individuals and households save and invest in a manner that is consistent with their financial risk tolerance. Financial planners were found to provide significant value to households on the consistency of their financial risk attitude and behavior. The implications of this work are far-reaching in the financial planning arena.

Suggested Citation

  • Eric Park & Rui Yao, 2016. "Financial Risk Attitude and Behavior: Do Planners Help Increase Consistency?," Journal of Family and Economic Issues, Springer, vol. 37(4), pages 624-638, December.
    • Handle: RePEc:kap:jfamec:v:37:y:2016:i:4:d:10.1007_s10834-015-9469-9
    DOI: 10.1007/s10834-015-9469-9
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    References listed on IDEAS

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    5. Sunder, Aman & Palmer, Lance & Chatterjee, Swarn & Goetz, Joseph, 2024. "Benefits of consistent and comprehensive financial advice during the Great Recession," Journal of Behavioral and Experimental Finance, Elsevier, vol. 41(C).

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