Financial Planners Research Articles

Does investor’s attitude matter? – A study of investment management by working women investors

Behavioural aspects play a critical role in imparting investment decisions. The investors, particularly women investors, generally get influenced by behavioural aspects that can affect process of their investment decisions. This study examines the role of behavioural aspect in investment management by working women.Following a review of the literature and discussions with financial planners, it was determined that the attitude of women investors is the likelybehavioural factor influencing how working women manage their investments. Thus, the research focuses on attitude of women investor in the planning, execution, review and revision stage of investments. A well-structured and well-designed questionnaire was used to gather the data. The respondents’ opinions about the investment management process were solicited. Excel and SPSS were used to tabulate the data that was gathered through the use of questionnaires.The hypothesis was tested with the help of statistical technique one-way ANOVA. The ANOVA result has shown that there is a significant impact of attitude on investment management by women investors. Interpretations indicated and limitations have been acknowledged.

Financial Planning: What the Social and Brain Sciences Have to Offer

This paper addresses the potential linkage of the disciplines of financial planning and the social and brain sciences from the combined perspectives of a financial planning expert and a business psychologist. It seeks to offer practical guidance on how to utilize insights from recent research and practice in the social and brain sciences to address the issue of effective financial planning in a time of multiple widespread international crises. The article will review the traditional approach to financial planning, indicate where the profession appears to stand now, describe advances in social and brain science, and provide some practical tools for use by practicing financial planners. The paper will conclude with a summary of its key points.

A systematic and bibliometric review of the financial well-being: advancements in the current status and future research agenda

PurposeAchieving financial well-being is essential for individuals, families and countries as it leads to life satisfaction and happiness. This study synthesizes and identifies financial well-being’s key areas and dimensions using a blended systematic literature review and bibliometric analysis approach.Design/methodology/approachThe authors systematically study a sample of 467 articles from the Scopus database to identify the research trend regarding financial well-being during the last 25 years (1997–2021). Various graphs and networks are presented to understand the publication trends, influential papers, conceptual and intellectual structures and research collaboration status.FindingsFour clusters in the field of financial well-being were found: conceptualization and antecedents of financial well-being, financial well-being of young adults, the relationship between financial literacy and financial well-being and consequences of financial well-being. Further, emerging themes in financial well-being were identified with a content analysis of the papers published during the last five years.Practical implicationsThis study will help financial planners, regulatory bodies and academic researchers in getting a better understanding of financial well-being and in identifying potential areas for future research.Originality/valuePrior to this study, no such comprehensive bibliometric analysis on financial well-being has been carried out to the best of the authors' knowledge. This gap motivated the authors to combine quantitative and qualitative methods to review the published research and do a content analysis, to identify prominent authors and publications.

Sufficient Income and Sustainable Withdrawal Rates for Retirement

Since the passage of the Employee Retirement Income Security Act of 1974 (ERISA), numerous companies from throughout the United States have chosen to change from providing “Defined Benefit” pension plans to providing “Defined Contribution” pension plans. Successful retirement planning is an iterative process that requires the management of many variables. Some are random and unpredictable in scope and magnitude and others are choices we make as our retirement objectives change. It’s essential that changes be incorporated expeditiously to minimize adverse outcomes. One can begin the process by estimating the annual income required to support one’s “retirement lifestyle” if retirement occurred today. Then extrapolate that income to the planned retirement date based upon the expected rate of inflation. A “modified four percent rule” can then be used to estimate the portfolio value required to support 30 or more years in retirement. The financial planner and client should go through this process at least every two years or when major events suggest a change is required. To assist the planner, this paper extends the Four Percent Rule in the following ways: Time in retirement is 16 – 40 years in 2-year increments with an asset allocation range is 0% to 100% stocks in 15 equal steps.

Jouska: a lesson on financial (il)literacy of Indonesian millennials?

Learning outcomes The learning outcomes are as follows: Students/participants can understand the type of financial fraud pertaining to the case; Students/participants can analyse the case using the fraud triangle perspective; students/participants can describe detection/anticipation strategies to prevent such acts from taking place in the future; students/participants can evaluate the case using the ethical decision-making framework; and students/participants can comprehend the importance of financial literacy when investing, especially in this digital era. Case overview/synopsis This case discusses the investment funds mismanagement accusations addressed to PT Jouska Finansial Indonesia (Jouska). Jouska is a financial planner business that was immensely popular among Indonesian young investors. It actively posted interesting content on its social media accounts, gaining attention from the millennial and Gen Z generations. However, in 2020, many of its clients reported and filed complaints that their portfolio values decreased significantly because of Jouska’s decision to invest their funds in low-quality stocks. Jouska was also alleged to violate its role as a financial planner by being able to perform several activities that fell under the authority of investment managers. This case attracted the attention of authorities so that the Investment Alert Task Force (SWI) stopped Jouska’s operational activities and initiated an investigation into the case. SWI also blocked Jouska’s websites, applications and social media accounts, in cooperation with the Ministry of Communication and Information. Despite settlement agreements that Jouska claimed had been offered to several clients, at the end of 2020 some of its clients and former clients filed a formal lawsuit. As of January 2021, several alleged criminal actions attributed to Jouska were still under investigation, comprised of money laundering, clients’ funds embezzlement, fraud, and insider trading. In October 2021, Aakar’s status was a suspect in the allegations. This case is another example of investment misconduct or fraud; to put it another way, it is the effect. It is expected that the participants can deliberate other perspectives during the discussion that could be the cause of such a case, hence viewing it holistically. Complexity academic level Undergraduate level. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

The role of cognitive heuristic-driven biases in investment management activities and market efficiency: a research synthesis

PurposeThis article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.Design/methodology/approachFor doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.FindingsThis review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.Practical implicationsThe skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.Originality/valueCurrently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.

Factors Influencing the Awareness of Financial Planning Among Working Adults in Penang

Financial planning is defined as a planning process between an individual and a financial planner that integrates relevant situation of the individual's financial circumstance, in order to assist the individual achieve financial goals and objectives (Bogan, et al., 2020). Additionally, Grozdanovska et al. (2017) stated that financial planning is a planning process of determine the financial goals, procedures and budget that refer to financial activities. According to Malaysian Financial Planning Council (2021), there are six steps in financial planning process. The six steps of financial process included: a) setting goals, objectives and priorities; b) gathering relevant data and information; c) analyzing information and assessing financial status; d) developing and presenting a financial plan for implementation; and e) executing the financial plan Keywords: Financial Planning, Awareness, Financial Literacy, Education Level, Income Level

Financial Toxicity Intervention Improves Outcomes in Patients With Hematologic Malignancy.

Patients with hematologic malignancies are extremely vulnerable to financial toxicity (FT) because of the high costs of treatment and health care utilization. This pilot study identified patients at high risk because of FT and attempted to improve clinical outcomes with comprehensive intervention. All patients who presented to the Levine Cancer Institute's Leukemia Clinic between May 26, 2019, and March 10, 2020, were screened for inclusion by standardized two question previsit survey. Patients screening positive were enrolled in the comprehensive intervention that used nurse navigators, clinical pharmacists, and community pro bono financial planners. Primary outcomes were defined as improvement in mental and physical quality of life in all patients and improvement in overall survival in the high-risk disease group. One hundred seven patients completed comprehensive intervention. Patients experiencing FT had increased rates of noncompliance including to prescription (16.8%) and over-the-counter medications (15.9%). The intervention resulted in statistically significantly higher quality of life when measured by using Patient-Reported Outcomes Measurement Information System physical (12.5 ± 2.2 v 13.7 ± 1.8) and mental health scores (11.4 ± 2.2 v 12.4 ± 2.2; all P < .001). In patients with high-risk disease (as determined by using disease-specific scoring systems), risk of death in those receiving the intervention was 0.44 times the risk of death in those without the intervention after adjusting for race, and treatment with stem-cell transplant, oral chemotherapy, or immunotherapy (95% CI, 0.21 to 0.94; P = .034). Screening and intervention on FT for patients with hematologic malignancies is associated with increased quality of life and survival.

The relationship between parents' personality traits and leaving unequal bequests to children

AbstractThis study investigated the relationship between the five‐factor model personality traits and parents' intentions to leave unequal bequests to their children. A sample of 1229 was drawn from the 2016 wave of the health and retirement study. As predicted by the study's hypotheses, the results found that conscientiousness was negatively related to unequal bequests, while extraversion was positively related to unequal bequests. Opposite of the study's prediction, however, was a positive relationship between agreeableness and unequal bequests. Although the effect sizes were small, financial planners can easily use these findings to better understand how their clients' personality traits may play a role in their wealth transfer intentions.

Priorities and challenges: Wealth management and financial planning among affluent Black families

AbstractThis article highlights common financial issues and concerns of affluent Black American households as they attempt to build and maintain long‐term financial stability. In so doing, we shed light on the nexus of Black families seeking professional wealth management services and Black financial planners working to meet their needs while also attempting to carve out a successful business in a profession and industry within which they are woefully underrepresented. A collaboration of a wealth inequality scholar and financial planning professionals from a wealth management company, this article outlines common planning priorities and challenges raised by African‐American families with their planning advisors. While many of these are universal, they also represent topics that are overwhelmingly prioritized by Black clients. When possible, we use information from the 2019 Survey of Consumer Finances on households located in the top quintile of the Black wealth distribution, the “affluent,” to complement the information provided by the analysts of their targeted clientele.

Customer engagement with service providers: an empirical investigation of customer engagement dispositions

PurposeWhile businesses seek to engage customers, their efforts are often met with varied results, as some customers are more predisposed to engage than others. Understanding customers’ dispositions to engage is central to understanding customer engagement, yet research examining customer engagement dispositions remains sparse and predominantly focused on personality traits. This paper aims to consider the general nature of a disposition and draws on qualitative findings to depict a framework for customer engagement dispositions.Design/methodology/approachTo investigate customer engagement dispositions comprehensively and in-depth, an exploratory qualitative approach was adopted. In total, 20 semi-structured in-depth interviews were conducted with customers in ongoing relationships with financial planners residing in Australia.FindingsNine attributes reflecting customer engagement dispositions emerge from the data. These include the customer’s internal tendency to engage (confidence, desire for control, extroversion and enthusiasm); a tendency to engage determined in the interaction with the service provider (sense of similarity, sense of social connection and trust in the service provider); and the capacity to engage (expertise and knowledge and time availability).Research limitations/implicationsThis study provides a conceptual foundation for future empirical measurement of customer engagement dispositions and their nomological network.Practical implicationsThis study establishes a foundation for managers to build distinct engagement disposition profiles and segments and target initiatives to maximize engagement activity.Originality/valueThis research challenges the view of customer engagement dispositions as largely personality factors, or exclusively cognitive and emotional dimensions of engagement, and offers a comprehensive framework reflecting a customer’s disposition to engage with a service provider.

보험설계사의 코칭역량과 일터환경특성이 조직성과에 미치는 영향: 대인관계의 매개효과

The purpose of this study is to examine the effects of financial planner coaching competency and workplace environment characteristics on organizational performance, and to empirically investigate whether interpersonal relationships play a mediating role. In this study, a total of 521 Google questionnaires were collected from financial planners, and the results of analysis using SPSS and AMOS are as follows. First, looking at the correlation between financial planner coaching competency and organizational performance, there is a statistically significant positive correlation, which means that if financial planner coaching competency is high, the organizational performance will also increase. Second, looking at the correlations between interpersonal and organizational performance of the financial planner, coaching competency and interpersonal relationship, and workplace environment characteristics and interpersonal relationship, it was found that there were statistically significant positive correlations among most of the measurement variables. Third, coaching competency and workplace environment characteristics of the financial planner directly and positively affect organizational performance and are predicted to affect organizational performance through interpersonal relationships. Fourth, the relationship between characteristics and organizational performance was partially mediated. Through this study, it is suggested that more studies should be conducted to clarify that the counseling skills used by a financial planner in counseling are very similar to the coaching skills used in coaching.

Psychological Indicator(s) in Stock Activities considering SDGs: The Wealth Maximization Criteria of Investors and Growth of Economy

Objective-Psychological Indicator specifies impetus and drift way, in addition to overbought and overvalued worth echelons and its conforming conceivable mean setbacks. These indicators play an essential role in sustainable development goals via stock market activities. The central objectives of the study are to identify the key psychological cognitive indicators behind the abnormal movements of the market. Methodology -For this purpose, a Semi-structured scale - developed on a self-basis - (with the help of literature and connoisseur’s meetings) was used after the context and the content validity to get an extensive array of differentiated information. Results-According to the experts of the market: investors do not always behave rationally, most investors either fall in the category of overconfident investors or status quo investors, usually the Rookies or beginners in the stock markets only have elementary knowledge and basic experience in the investment domain, based on little or no knowledge of rookies it is actually so hard for them to recognize the future prospects of the securities, and not only investors but stock market’s financial analysts can also be subjected to the behavioral biases but on the other hand in order to understand and recognize one’s own behavioral biases and proneness towards those biases investors can rely on financial planners. Conclusion-The traditional economic theory states that the investor is rational: which is not true in every case and is hard to generalize. Investors must overcome the general predispositions that lead to poor decision-making if they are to become successful in the stock market in the long run. And the investor must learn all about the investment accounts available in the stock market

KONTEN MARKETING INSTAGRAM DAN BRAND IMAGE PADA MINAT PENGGUNAAN JASA PERENCANA KEUANGAN

In marketing and developing a product, companies must have a strategy on how brands can be recognized, communicated and get product positioning in the market through digital promotions using electronic media, one of which is Instagram social media, which in turn will affect interest in using products or services. . This study aims to determine the effect of marketing content and brand image as a mediation on interest in using financial planning services Finansialku.com. The test tool used is SMART PLS 3.0. The results showed that the marketing content variable had a significant effect on brand image and interest in using, and the brand image variable had a significant influence on interest in using services, as evidenced by the partial test or t-test showing the P Values below 0.05. Likewise, the path analysis test shows the results that brand image mediates between marketing content variables and interest in using the services of financial planners at Financialku.com as evidenced by P Values below 0.05.

Do as i tell you, not as i do

We describe the financial behavior of financial advisors and whether they follow the advice they give clients. We focus on the following areas of comprehensive financial planning as they relate to advisor behavior: (1) cash flow, (2) debt, (3) retirement planning, (4) investments, and (5) estate planning. The primary goal is to investigate whether financial planners practice what they preach. A secondary goal is to identify the characteristics associated with the advisors that best plan their own financial lives. We find that financial advisors generally follow their own advice; as a group they are more likely to be prepared for retirement, have less debt, higher liquidity, covered insurance needs, and have an estate plan in place.

Influence of bull and bear market phase on financial risk tolerance of urban individual investors in an emerging economy

PurposeThis study aims to analyze how risk tolerance is influenced by bull and bear market phases, age and professional work experience (PWE) of investors in emerging economies. The authors also analyze how different market phases (bull and bear) influence risk tolerance of investors in emerging economies for different age groups and with varying PWE.Design/methodology/approachThe study uses two quantitative methods, one-way ANOVA and hierarchical regression model (HLM) to analyze individual investors' financial risk tolerance (FRT) in India.FindingsThe authors find that age and PWE have positive relationship with FRT behavior. However, interactions of these variables with market phase variable indicate that risk tolerance has nonlinear increasing relationship with investor's age and PWE. The risk tolerance of older investors is consistently high in both bull and bear market conditions, while young investors display a nonlinear risk behavior in different market conditions.Practical implicationsThe study suggests that financial planners should include a longitudinal risk profiling of investors based on age groups, PWE and the current market phase to better understand investors' FRT and also to prefer more context-specific advice to investors in emerging economies, which, consequently, result in increasing the retail investors' interest in otherwise sparsely participated equity market.Originality/valueInteraction effect of bull and bear market phases on relationship between age and PWE and FRT has been scantly studied.

Aging and loneliness: Why financial advisors should help clients and how

AbstractThe primary goal of this study is to examine loneliness in retirement and explore steps that a financial planner can take to mitigate client loneliness. Using data from the Participant Lifestyle Questionnaire, and Leave‐Behind Module from the Health and Retirement Study database, we show that even after controlling for relationship status and having a purpose in life, leisure activities can help reduce loneliness. When compared to increasing household wealth, the authors find that engaging in social activities has a greater impact on decreasing loneliness, signaling a possible duty of care owed to clients as it relates to well‐being. We conclude with implications and practical strategies financial advisors can implement to help clients as they plan for and navigate retirement.

A Pendampingan Peningkatan Pemberdayaan Masyarakat Kelurahan Prambangan Kabupaten Gresik Melalui Pelatihan Literasi Keuangan Di Masa Pandemi Covid-19

The Corona (Covid-19) outbreak that emerged in 2020 in Indonesia. The world economy has been is shambles due to the weakening of world economic growth, including Indonesia. This has resulted in many households experiencing economic diffuculties as a result of declining incomes due to the declining purchasing power of the people. This decline in family makes housewives as a Financial Planner to be wise in managing household finances during this pandemic. For this reason, in the communty service, it is necessary to provide education regarding good financial planning for business continuity and family finances. After trainning and mentoring, there was an increase from 36 npercent to 80 percent in the form of the financial recording process using available applications, how to get a loan and what are the conditions. Assitance related to the use of e-commerce platforms that can reach a wider range of consumers. This assistance also explains how our products can be accepted by consumers, especially processed food, for that it is necessary to create an SPP-IRT that gives a sense of trust because it already has a distribution permit that already meets foot safety standards.

Investment Risk Tolerance amongst South African University Students in the Vaal Triangle Area

Analysing students risk tolerance during the investor life cycle is imperative to students and financial planners alike, to facilitate the implementation of suitable investments and investment strategies. Students in universities do not have the required knowledge to invest and this is why an investment framework was created to assist, guide and inform students of what stage of the individual investor life cycle that they are in and suggest suitable investment strategies. The article implemented a quantitative approach, using secondary data analysis. The data used for the analysis is from a self-administered questionnaire in 2017 that was distributed to a sample of 396 students from two higher education institutions in the Vaal Triangle region. Two validated risk tolerance scales were used to analyse students risk tolerance levels. The objective of this paper was to determine the risk tolerance levels of students in the Vaal Triangle region. The two results from the 13-item scale and the single-item scale for measuring risk tolerance indicated that the students have a medium risk tolerance level.

The Intersectionality of Race and Gender in Financial Planner Use

Using the 2019 Survey of Consumer Finances, this study examined the role of race and gender regarding the use of financial planners through the lens of intersectionality. More specifically, this study investigated whether there was an association between race and gender, notably for Black women, and financial planner use compared to White women, Black men, and White men. Results of the interaction analyses in the probit model show that Black women were more likely to use financial planners than other groups. A follow-up analysis indicated that results were significant when comparing Black women to White men but there was no significant difference when comparing Black women to Black men and White women. This study adds to the literature by taking into consideration the implications of dual minority status on Black women’s financial well-being and decision-making. Implications are provided for financial therapists and professionals, policymakers, and funders.