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Changes in Household Net Financial Assets After the Great Recession: Did Financial Planners Make a Difference?

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  • Joseph W. Goetz
  • Lance Palmer
  • Lini Zhang
  • Swarn Chatterjee

Abstract

This study utilized the 2007-2009 Survey of Consumer Finances (SCF) panel dataset to examine the impact of financial planner use on household net financial asset level during the Great recession. Data included 3,862 respondents who completed the SCF survey and a follow up interview. The results indicated that starting to use a financial planner during the Great Recession had a positive impact on preserving and increasing the value of households' net financial assets, while curtailing the use of a financial planner during this time had a negative impact on preserving the value of households' financial assets. Thus, study findings indicated that the benefit of using a financial planner maybe particularly high during a major financial downturn.

Suggested Citation

  • Joseph W. Goetz & Lance Palmer & Lini Zhang & Swarn Chatterjee, 2020. "Changes in Household Net Financial Assets After the Great Recession: Did Financial Planners Make a Difference?," Papers 2006.00949, arXiv.org.
    • Handle: RePEc:arx:papers:2006.00949
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    1. Michal Grinstein-Weiss & Clinton Key & Shannon Carrillo, 2015. "Homeownership, the Great Recession, and Wealth: Evidence From the Survey of Consumer Finances," Housing Policy Debate, Taylor & Francis Journals, vol. 25(3), pages 419-445, July.
    2. Hackethal, Andreas & Haliassos, Michael & Jappelli, Tullio, 2012. "Financial advisors: A case of babysitters?," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 509-524.
    3. Daniel G. Goldstein & Eric J. Johnson & William F. Sharpe, 2008. "Choosing Outcomes versus Choosing Products: Consumer-Focused Retirement Investment Advice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(3), pages 440-456, August.
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