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The benefits of engaging a financial planner are well-documented in the literature. That is why it is so surprising that very few financial planners had their own planners despite spending their days purporting the importance of having a planner to potential clients. This article introduces an exercise, designed for financial planning courses, which encourages students to meet with a financial planner and write about their experience. The essays were examined using the qualitative methodology of thematic analysis. Several themes emerged: (a) insights into what it would be like to be a financial planner, (b) decreased anxiety after seeing the planner, (c) better empathy regarding the client's experience, (d) increased respect for the interpersonal skills required to do financial planning, and (e) receiving personal and professional benefits to seeing a financial planner. Implications for both Certified Financial Planner Board Registered Programs and existing financial planners are provided based on these results. [ABSTRACT FROM AUTHOR]

Recent developments in cognitive psychology and behavioral economics may explain the lower-than-predicted asset decumulation behavior posited by traditional life-cycle models during retirement, dubbed the retirement consumption puzzle. This study examines if mental accounting could be used to explain the retirement consumption puzzle. Utilizing panel data collected from the 1992–2018 Health and Retirement Studies, retiree age and age squared are examined using fractional polynomials and fixed effects regressions for their associations with varying categorical retiree asset decumulation patterns, including retiree wealth, nonhousing wealth, stocks, retirement accounts, bonds, liquid assets, vehicles, primary residence, and home equity. The results suggest that varying asset decumulation behaviors exist among retirees, which could be explained by retirees' discretionary spending propensities. The discussion highlights the importance of understanding retiree behavioral spending constraints to allow for smooth consumption paths. [ABSTRACT FROM AUTHOR]

This study explored the associations among personal financial planning, self-control, and financial satisfaction using a sample of 293 employees of universities in Ghana. Based on the partial least squares structural equation modeling analyses, the results showed that financial planning and self-control had positive relationships with financial satisfaction and that self-control partially mediated the relationship between financial planning and financial satisfaction. [ABSTRACT FROM AUTHOR]

In 1990, the Journal of Financial Counseling and Planning (JFCP) was established. The journal publishes academic research on consumer financial decision-making, financial education, counseling, and planning. This article reviews the journal's contents published during the period 1990–2022. It analyzes JFCP's publication trends, citation statistics, significant themes, authors' collaborations, keywords, and contributions to the literature of consumer finance. Most studies employed Life Cycle Hypothesis and Expected Utility Theory. JFCP publishes mostly US-based quantitative empirical studies. JFCP's eight knowledge themes are credit card behavior; financial literacy and financial behavior; financial risk tolerance; financial education, and financial behavior; financial distress and financial self-efficacy; financial well-being; workplace financial education and financial help-seeking behavior, and JFCP's retrospection. Among JFCP's articles, the most used keywords selected by authors are "survey of consumer finances" and "financial literacy." This study also describes the author, country, and concept networks. [ABSTRACT FROM AUTHOR]

The purpose of this study was to examine the likelihood of consumers hiring a financial planner based on race and gender utilizing an experimental design. Using a sample of Black and White MTurk respondents, cumulative logistic regression was employed to determine the effects of race and gender on the likelihood to hire a financial planner. Findings suggested that, overall, consumers did not have racially biased preferences when hiring a financial planner. However, they did express a preference for hiring female planners over male planners. Financial planning firms can use these findings to strengthen their support for and recruitment of women financial planners, as well as address concerns of racial bias amongst consumers. [ABSTRACT FROM AUTHOR]

The purpose of this study is to examine migration during retirement and its association with retirement satisfaction. Utilizing longitudinal data collected from the Health and Retirement Study, this study estimates a fixed-effects logit model to examine how changing U.S. Census divisions during retirement is related to retirement satisfaction. The findings suggest that a change in residential location during retirement is associated with an increase in retirement satisfaction. In planning for retirement, individuals should examine what will provide them with the highest level of satisfaction during their retirement and whether their current location can facilitate an enjoyable retirement. Financial planners and counselors should also consider, as a part of their systemic retirement planning process, increasing the attention that is given to the residential location in which their clients will reside during retirement. [ABSTRACT FROM AUTHOR]

Is there an association between a household financial decision maker's risk tolerance and the performance of the stock market? Some researchers argue that financial market events have little association with the financial risk tolerance (FRT) of household financial decision makers, while others argue that FRT among individuals can vary in relation to significant market fluctuations. The applicability of either argument may depend on the length of the period before and after a major market event. The purpose of this study was to evaluate aggregate changes in FRT around a major stock market event for different anchor time periods and to test the recency bias hypothesis. The analyses were designed to explore the FRT of Americans during a volatile multimonth period of stock market performance in 2018–2019. Several univariate, bivariate, and multivariate tests were used to compare FRT assessment scores pre- and post-October 3rd, 2018 (i.e., the market high in 2018). A decrease in FRT from the market high was noted across the sample; however, the decrease was exhibited most acutely by younger, nonmarried respondents with few investable assets. A noteworthy finding from this study is that financial counselors and financial planners likely serve a "buffering" role when household financial decision makers experience stock market shocks. [ABSTRACT FROM AUTHOR]

This study aims to determine the status of existing research on financial planning for retirement. We used bibliometric analysis and content analysis to examine a sample of 1,116 studies conducted over a span of more than five decades. Bibliographic coupling network was developed to determine the intellectual themes in the field. Our findings suggest that the structural, economic, and cultural disparities worldwide lead to distinct pressures for savings on individuals. Further studies should be conducted considering emerging economies and the aforementioned disparities to gain deeper insights. While a few studies have examined the influence of social biases, behavioral biases, personality traits, and psychological constructs on financial literacy and the impact of this interaction on financial planning for retirement. We conclude by suggesting potential future research directions. [ABSTRACT FROM AUTHOR]

Using a nationwide online survey capturing detailed information on the backgrounds and practices of 654 financial planners, this study examines the associations between the use of technologies by financial planners and self-reported time spent within various stages of the six-step financial planning process. Surprisingly, in many cases, use of technology is associated with an increase rather than a decrease in time spent within various stages of the financial planning process. These results suggest that although technologies may provide efficiencies in completing certain tasks, these efficiencies do not necessarily result in net reductions in time spent within the financial planning process. [ABSTRACT FROM AUTHOR]

This study examined the use of data visualization to improve financial literacy in adults. Using financial knowledge questions as test items this study used an experimental approach. Poisson regression was conducted on responses from 1,797 participants to an online survey via SurveyMonkey. Approximately one-third of respondents were assigned to a text-only group explaining a financial concept, one-third to a group that received a visualization plus text explanation of the concept, and one-third to a control group with no intervention. The findings suggest visualization of data assist in assimilation of financial knowledge compared to no intervention and to text interventions. The study has implications for financial education programs attempting to implement interventions in order to improve financial knowledge. [ABSTRACT FROM AUTHOR]

As defined contribution (DC) plans become more popular than defined benefit (DB) plans, American workers are increasingly responsible for their retirement savings. Because retirement plan participants' portfolio allocation is constrained by the available funds in the plan, the construction of a plan's investment menu has become extremely important. No research has evaluated fund selection in retirement plans or compared plans involving an advisor with self-directed plans. To fill this research gap, this study employs cross-sectional, nationwide data that include 5,570 retirement plans with 100 or more participants in 2013, 2014 and 2015. Results show that in most cases, using advisors is not related to plan performance. Plan sponsors should require advisors to periodically evaluate the performance of plans under their management using objective measures. [ABSTRACT FROM AUTHOR]

We used survey data from a cross-sectional New Zealand sample of adults to examine whether financial socialization and financial literacy are associated with their financial behavior. The results show different financial socialization experiences of adult males compared to adult females are associated with higher financial literacy and higher financial confidence. Adults with education in finance and economics had higher financial literacy and financial confidence in managing their personal finances. Furthermore, those with high self-assessed confidence in managing personal finance but low financial literacy, have a higher propensity to engage in undesirable financial behaviors. [ABSTRACT FROM AUTHOR]

This article examined the relationship of household financial behaviors and accesses. Using the 2015 National Financial Capability Study, the current study conducted latent class analysis of financial behaviors to identify latent classes (N = 27,564). The distribution of access was investigated among latent classes, which were regressed on the financial behaviors of financial planning and financial spending factors and other covariates using multinomial logistic regression. After controlling for other variables, the odds of being in Thinly Banked, Limited Access, and Working Families classes instead of being in Investors class decreased by 90%, 88%, and 66% for every point higher in financial planning behavior, respectively. Results suggest that desirable financial behaviors such as planning are important for consumers with the least financial access. [ABSTRACT FROM AUTHOR]

This study examined potential impacts of financial resources and values on emerging adults' choice in committed relationships (N = 424, 26–35 years). Guided by Deacon and Firebaugh's (1988) Family Resource Management theory, financial self-sufficiency and forming a committed relationship were conceptualized as two salient goals of emerging adulthood. Multinomial logistic regression was used to determine the effects of financial self-sufficiency, values, and personal background factors on choice of committed relationship status. Findings indicated that emerging adults with fewer financial resources chose to live apart; however, the effects of career values were a stronger predictor of their relationship status. In contrast, neither financial resources nor career values differentiated between cohabiting and married emerging adults. [ABSTRACT FROM AUTHOR]

This article describes the current status and trends in the past three decades (1990–2019) of the Journal of Financial Counseling and Planning (JFCP). Since its first issue published in 1990, JFCP has become a major research outlet in consumer finance. The journal publishes cutting-edge, peer-reviewed, original research papers on consumer financial counseling, planning, and education that have broad impacts on both academic research and business practices in the field of consumer finance. It is included in many major indexes such as Scopus, Emerging Source Citation Index, EconLit, among others. It has published influential papers on consumer financial well-being, financial capability, financial education, financial counseling, financial planning, retirement planning, risk tolerance, and financial behavior change. [ABSTRACT FROM AUTHOR]

This study examines the roles of internal and external search characteristics and attitudinal factors in investors' decisions to utilize robo-advisor-based platforms. Using the 2015 state-by-state National Financial Capability Study and Investor Survey, this study finds that the need to free up time, higher risk tolerance, higher subjective financial knowledge, and higher amounts of investable assets were positively associated with individual investors' adoption of robo-advisors. Additionally, the results from the interaction model indicates that individuals under 65 with a higher risk tolerance and greater perceived investment knowledge were more likely to use robo-advisors. Implications of the key findings for scholars, practitioners, and industry leaders are included. [ABSTRACT FROM AUTHOR]

This study utilized qualitative methods to explore perceptions of graduates from Certified Financial Planning Board of Standards, Inc. Registered Programs regarding experiences that impact Certified Financial Planner (CFP) certification completion. Participants (N = 16) were classified into four different groups: Certified, In Progress, With Intentions, and No Intentions. In general, the themes that emerged from within case analyses and across cases related to four areas, including preservice experience, intrinsic motivation, employment, and respect for the CFP marks. The results of this study suggest that financial service firms have a number of opportunities to strengthen the interest in a financial planning career and assist recent graduates in their pursuit of CFP certification with time and financial support of the examination process. [ABSTRACT FROM AUTHOR]

An increasing number of individuals will be unable to retire comfortably amidst an international retirement savings crisis. Research suggests that behavioral factors contribute to inadequate retirement savings. We present a procedure that reframes the retirement savings decision, aimed at alleviating some of the negative effects of the behavioral factors. This procedure shifts the focus from the required wealth at retirement (the future) to the lifestyle an individual can afford to maintain now (the present). A sustainable lifestyle level (SLL) approach is expressed mathematically and illustrated with practical examples. The SLL approach offers a practical tool for retirement planning professionals to present recommendations that are simple and easy to understand for individuals faced with complex retirement planning decisions. [ABSTRACT FROM AUTHOR]

The purpose of this study was to explore the potential influence of childhood financial socialization on financial well-being in adulthood. Using a sample (N = 2,213) from De Nederlandsche Bank Household Survey (DHS) we modeled the likelihood of household debt/asset ratio less than or equal to 40%, and the likelihood of a household reporting a current ratio (liquid asset /short-term debt ratio) greater than or equal to 100%. Consistent with predictions of social learning theory, being encouraged to save during childhood had a positive association with meeting the financial planning industry benchmarks for these financial ratios in adulthood. The key implication is that the path to financial well-being does not begin with financial knowledge attained in adulthood, but instead begins with experiential learning and socialization during childhood. [ABSTRACT FROM AUTHOR]

This study examines the relationship between sound financial management behaviors and happiness using a national sample of adults collected in 2009 (N = 1,014). We used Maslow's hierarchy of needs (1943) as a theoretical framework to examine associations between sound financial management behavior, economic pressure, relationship satisfaction, and happiness. Findings suggested that economic pressure and relationship satisfaction both mediated the association between sound financial management and happiness, but the mediator effects were only partial. That is, even after accounting for participants' actual financial context, feelings of economic pressure, and relationship satisfaction, a positive association between sound financial management behavior and happiness remained. [ABSTRACT FROM AUTHOR]

This study investigated Millennials' source selection while searching for financial information to improve financial well-being. Results from an online survey of 488 business students at a Western U.S. university showed that Millennials used multiple sources when looking for financial information, but only sources whose perceived attributes fit the seekers' preferences were considered; respondents favored family, employer/university, and government sources. Associations between personal characteristics (personal financial well-being, financial issue involvement, financial health self-efficacy, gender, and perception of source attributes) and financial information source selection were examined. Findings suggest financial practitioners, universities, and employers can improve their "fit" as financial information sources for Millennials by cocreating financial information with them, tailoring the communication channels, and enhancing the accessibility of information. [ABSTRACT FROM AUTHOR]

This study investigates the relationship between financial self-efficacy (FSE) and saving behavior within a sample of 847 U.S. pre-retirees aged 50 to 70 from the Health and Retirement Study. In accordance with the social cognitive theory of self-regulation, results revealed that FSE is positively related to saving behavior after controlling for sociodemographic attributes, financial characteristics, and saving motives. Understanding how FSE contributes to saving behavior is critical as older workers attempt to bridge the retirement saving gap. Financial counselors and planners can help this population save by cultivating and supporting clients' FSE throughout the financial planning and counseling process. [ABSTRACT FROM AUTHOR]

This study investigated the relationship between retirement saving needs estimation and the amount of self-reported private retirement savings amassed by working-age adults in Hong Kong, China, by focusing on the mediating role of retirement saving needs estimation between retirement goal clarity and the amount of private retirement savings. Based on the data collected from a phone survey of 958 Hong Kong workers aged 25–64 years, we found that the retirement saving needs estimation was associated with the savings of individuals over 44 years old; furthermore, it mediated the association between retirement goal clarity and self-reported private retirement savings. The findings offer theoretical contributions for financial planning conceptual frameworks and provide policy implications. [ABSTRACT FROM AUTHOR]

Concerns regarding the adequacy of retirement savings have contributed to the move to encourage better savings behavior. One area of research focuses on understanding the profile of individuals who believe they are preparing adequately for retirement. The current study uses data from a national survey of South Africans to determine how confident workers are about their future retirement income adequacy, and whether behavioral characteristics play a role in their perception of retirement readiness. This study highlights the role that behavioral factors play in perceptions of retirement income adequacy in an African developing market context. In particular, financial risk tolerance, future time perspective, good financial behavior, and self-assessed financial knowledge are all found to be positively related to respondents' retirement confidence. [ABSTRACT FROM AUTHOR]

We obtained 180 pre- and post-test surveys to investigate how an established financial literacy program may have increased financial knowledge of residents in a work release program in Augusta, Georgia. Paired t tests analyzed changes in subjective and objective financial knowledge, understanding of banking and credit, and financial attitudes. OLS regressions of pre- and post-test financial knowledge were guided by human capital theory to learn which program participant characteristics were associated with greater increase in knowledge and infer why. Education, age, and use of financial tools were significant predictors in the pretest. Controlling for pretest knowledge, there were significant, positive differences from pre- to post-test, regardless of race. Implications for further research and specific suggestions for financial education content for the incarcerated are provided. [ABSTRACT FROM AUTHOR]

Families that have a child with Down syndrome (DS) are facing financial challenges due to the increased life expectancy and daily life dependencies that he or she experiences. This article uses pediatric findings to supplement child mortality impairment assumptions and proposes a combination annuity pricing model to explore an annuity solution for families that have a child with DS. A Markov chain Monte Carlo simulation model is constructed with features such as a fixed death benefit, return of premium, different premium payment patterns, and the widowhood effect factor. The results indicate that such a product is generally affordable for families that have a child with DS to cover their child’s longevity risk and increased dependency needs. [ABSTRACT FROM AUTHOR]

This study sought to investigate household sociodemographic characteristics as predictors of patterns of health insurance premiums and medical expenses of consumers using the 2014 Consumer Expenditures Survey. This study found that age, being married, educational attainment, and log of family salary income were associated with higher family spending on both health insurance premiums and medical expenses. Government employment status was associated with lower spending on health insurance premiums and medical expenses. Findings from this research are informative for both households in determining health insurance premiums and medical expenses throughout the life course as well as financial advisors in personal financial planning and counseling focused on health care. [ABSTRACT FROM AUTHOR]

Retirement income planning has emerged as a distinct field within financial planning with the realization that risks change dramatically in retirement. The combination of longevity risk, increasing market risk triggered by taking distributions from assets, and spending shocks create new challenges. Wealth management has traditionally focused on accumulating assets without applying further thought to these differences happening after retirement. Retirees experience reduced capacity to bear financial market risk once they have retired. This calls for different thought processes from those typically included in traditional investment management. Risk pooling becomes an important retirement income tool combined with a traditional investment portfolio. Retirement income challenges and a framework for helping individuals develop more efficient and successful retirement income plans are discussed. [ABSTRACT FROM AUTHOR]

Field experiments, which are a powerful research technique, are common in some fields, but they have not been widely used in studying the effect of financial and counseling planning interventions. Financial services can benefit from the expanded use of field experiments to explore potential causal mechanisms for the effects of financial planning and counseling interventions. This article describes the value of field experiments as well as the potential problems with the approach, in this context. Researchers and practitioners in financial planning and counseling should explore opportunities to conduct field experiments, especially in situations where studies can be carefully designed and implemented in a standardized way with a sufficient number of people and where valid measures are available. [ABSTRACT FROM AUTHOR]

The purpose of this study is to investigate whether a professional designation affects consumer choice behavior within the area of investment decision making. Forty-six participants were endowed with real money and received hypothetical investment advice from a certified financial planner (CFP) Professional and a stockbroker. Among low-income households, advice from a CFP altered investor choice behavior within hypothetical education and retirement savings accounts. When participants made investment decisions using education funds and received advice from a CFP, the mean expected value of their investment choices was $43,913, compared to $25,870 given advice from a stockbroker. When investment decisions were made using retirement funds, the average expected value given advice from a CFP and a stockbroker was $53,424 and $33,207, respectively. If an investor was risk-neutral or risk-seeking, investment choices were improved when advice was rendered by a CFP relative to a stockbroker. [ABSTRACT FROM AUTHOR]

We conducted an annual survey of undergraduate students taking finance courses over the past 5 years (2009–2014). Our results showed that although more than 70% of students considered the financial planning profession to some extent, the percentage of students who had seriously considered it declined over time, despite the increasing number of new hires in the area. Our regression models showed that students with a higher level of related experience were more likely to show increased interest over time and that male students were less likely to change their minds regarding their decisions to become a financial planner. These results suggest that academic programs need to form stronger partnerships with the industry and to facilitate better communications with female students regarding the profession. [ABSTRACT FROM AUTHOR]

Financial planners face a consistent challenge to help clients understand the trade-off between risk and return. Most clients relate to the idea of a targeted level of expected return to achieve specific wealth goals but with limited understanding of the required risk. Extended investment horizons require client discipline when market volatility appears to be enhancing the possibility of loss of wealth. The purpose of this article is to illustrate that bearing the risk associated with market volatility can reward clients with the achievement of targeted portfolio returns, even during times of great financial and economic uncertainty. Data from 1994 to 2013 is used to create hypothetical portfolios consisting of stock and bond allocations designed to target specific client return objectives. Graphical charts illustrate the resulting annual volatility associated with multiyear investment horizons. Financial planners can use these examples to better communicate the historical volatility associated with portfolios constructed to deliver target levels of return to clients. [ABSTRACT FROM AUTHOR]

Using data from the 2013 Survey of Consumer Finances, this study evaluates the potential effect of using financial planners on household portfolio performance, which was measured by Sharpe Ratio. Results revealed that households that reported using financial planners demonstrated better portfolio performance than those that did not. This lends empirical support to claims that professional financial planning services provide value to clients. Implications for investors, financial planning professionals, and researchers are discussed. Considering the direct relation between wealth accumulation and portfolio performance, financial planners should explore ways in which to work with those with limited resources to help them realize the benefits of using financial planners and improve their portfolio performance as a result. [ABSTRACT FROM AUTHOR]

The purpose of this study was to examine the relationship between financial literacy and financial behaviors among various age groups. Financial literacy was measured in three ways: objective financial knowledge, subjective financial knowledge or confidence, and subjective financial management ability. The age groups were 18–24, 25–34, 35–44, 45–54, 55–64, and 65 and older. Long-term financial behavior referred to retirement saving and investing behavior, whereas short-term financial behavior referred to spending and emergency saving behavior. In the full sample, both objective and subjective financial literacy variables were positively associated with long- and short-term financial behaviors. In the age subsamples, subjective financial knowledge or confidence was more strongly related to long- and short-term financial behavior than either objective financial knowledge or subjective financial management ability in the younger age groups. In the older age groups, objective financial knowledge was more strongly related to long-term financial behavior than either of the other two measures of financial literacy. [ABSTRACT FROM AUTHOR]

Conflicts of interest (COI) are an ethical issue for financial planners because they impair professional judgment if not addressed. This article describes a quantitative, cross-sectional study of COI recognition in pending engagements and measuring the influence of time in practice and financial planning credentials upon recognition. Participants were 51 graduates of the M.S. degree from the College for Financial Planning. Participants were asked three questions regarding each of the six hypothetical situations of pending financial planning engagements. Each question provided an indicator of COI recognition. Time in practice and financial planning credentials were used as influence factors upon COI recognition. Results indicated high COI recognition involving role conflict and low recognition with family members as clients. Time in practice was related to increased COI recognition involving role conflict. Financial planning credentials were related to increased COI recognition with a business associate as client. [ABSTRACT FROM AUTHOR]

Many researchers have examined the influence of the financial planning horizon variable in the Survey of Consumer Finances and the Health and Retirement Study. The question asks respondents to choose the most important time period for saving and spending decisions. These researchers have assumed that the variable reflects the time preference of respondents. However, it is also possible that the variable reflects respondent situations. To examine whether the variable is situational or is a measure of a persistent preference, we used the 1992-2007 U.S. Survey of Consumer Finances datasets and examined the relationship between household characteristics and the financial planning horizon. After controlling for demographic and economic variables, the estimated planning horizon shows a hump shape along with age that peaks at age 43. The results suggest that the financial planning horizon variable is a situational factor rather than measuring a constant time preference. [ABSTRACT FROM AUTHOR]

This study was designed to determine if a general description of a person's willingness to take risks-- risk portrait as phrased in this study--can be developed for individuals nearing retirement (aged 45-53). Using data from the 2010 wave of the National Longitudinal Survey of Youth (NLSY79), a latent risk-tolerance construct was developed consisting of driving, financial, occupational, health, interpersonal, romantic, and major life change risk tolerance. These seven items were found to be positively associated with each other. Each of the items also loaded highly onto one factor within a principal components analysis. Findings from the study suggest that risk tolerance is most likely a generalized attitude, not a domain-dependent attitude, held by individuals. Results suggest that including the seven risk items used in this study into a client data gathering form can provide useful information in strengthening the client-counselor/planner relationship. Opportunities for further research, based on this study, are presented. [ABSTRACT FROM AUTHOR]

Using the Asset and Health Dynamics among the Oldest Old (AHEAD), this study presents the first longitudinal results analyzing factors associated with getting and dropping a financial advisor. We find that quantitative as well as qualitative factors are significant when evaluating the value of professional financial advice. Getting a financial advisor was positively associated with becoming a widow(er), asking family members for assistance with financial decisions, seeking professional help for emotional problems, and experiencing increases in income and net worth. Among single and widowed respondents, experiencing significant cognitive decline also increases the likelihood of getting a financial advisor. Dropping a financial advisor was negatively associated with becoming a new widow(er), getting married, and experiencing an increase in net worth. No longer involving family members in financial decisions was strongly related to dropping a financial advisor. We discuss implications for practitioners relevant to both client acquisition and client retention. [ABSTRACT FROM AUTHOR]