Determinants of Asset Allocation Strategies for Retirement Saving

Morrin, M., Broniarczyk, S. & Inman, J. J. (2008), Saving for Retirement: The Effects of Fund Assortment Size and Investor Knowledge on Asset Allocation Strategies, The Journal of Consumer Affairs, 42(2), 206-222.

Brief Description: We conducted a decision simulation among 211 adults whose task was to invest in a hypothetical 401(k) retirement plan. We varied the number of mutual funds (3 or 21) offered for investment and assessed investor knowledge with a self-report measure. The results indicate that less …

A Framework for Promoting Retirement Savings

Wiener, J. & Doescher, T. (2008). A Framework for Promoting Retirement Savings, The Journal of Consumer Affairs, 42 (2), 137-164.

Brief description: This paper identifies the constructs that influence an individual’s intention to save for retirement. It discusses how and when these factors can be changed by an agent trying to induce an individual to enroll in a retirement plan, increase his or her contribution to a plan, or purchase a particular retirement product. A broad array of psychological theories …

Impact of Health on Financial Security of Older Americans

Kim, H. & Lyons, A. C. (2008). No Pain, No Strain: Impact of Health on the Financial Security of Older Americans. The Journal of Consumer Affairs; Spring 2008, 42(1), 9-36.

Brief Description: This study investigated the impact that new and existing health problems have on the financial strain of older Americans. Health problems significantly increased the likelihood of financial strain for older individuals, but the effects varied by the measure of financial strain used and how health status is …

Social and Financial Capital Resources Can Lessen Hardships

Parks-Yancy, R., DiTomaso, N. & Post, C. (2007). The mitigating effects of social and financial capital resources on hardships. Journal of Family and Economic Issues, 28(3), 429-448.

Brief Description: Social and financial capital resources include knowing people who can help one obtain a job, offer cash or help defray expenses when layoffs or other hardships occur. These resources differ by gender and class (income/occupational status). This study found that middle class individuals had ample access to social and financial …

Banking Experience and Individual Development Accounts

Grinstein-Weiss, M., Yeo, Y. H., Despard, M. R., Casalotti, A. M., and Zhan, M. (2010). Does prior banking experience matter? Differences of the banked and unbanked in Individual Development Accounts. Journal of Family and Economic Issues 31, 212-227.

Brief Description: This study compares the saving performance and program participation of participants who owned bank accounts and those who did not prior to program enrollment in 14 Individual Development Account programs. Banked participants were shown to have higher average monthly net …

Risk tolerance and investments of business owners

 

Wong, C. & Hanna, S.D. (2007). The risk tolerance and stock ownership of business owning households. Financial Counseling and Planning, 18(2), 3-18.

Brief Description: This study examined the risk tolerance and stock ownership of three types of households: non-business owners, those that own and manage a business, and those that own but do not manage a business. Non-manager business owners were more likely than others to take risks and hold stocks, and manager owners were significantly less likely to …

Effect of Expressing a Quantitative Goal on Savings Behavior

Loibl, C. & Scharff, R. L. (2010). Examining the effect of expressing a quantitative goal on consumer savings. Journal of Consumer Affairs, 44, (1): 127-154. http://dx.doi.org/10.1111/j.1745-6606.2010.01160.x.

Brief Description: The study extended the psychological concept of implementation intentions to the analysis of savings behavior. A field experiment was conducted with current participants of an America Saves campaign in a large city in a U.S. Midwestern state. The intervention required the treatment group participants to write down specific plans about the …

Couples’ money management behavior and relationship satisfaction

 

Britt, S., Grable, J.E., Nelson, B.S., & White, M. (2008). The influence of perceived spending behaviors on relationship satisfaction. Financial Counseling and Planning, 19(1), 31-43.

Brief Description: This study explored relationships between couples’ personal and joint spending habits and relationship satisfaction. Results indicated that partner spending behaviors, but not one’s own or joint spending behaviors, influence relationship satisfaction. Other factors associated with relationship satisfaction were high self-esteem (positive relationship) and financial stressors such as medical bills (negative relationship).

Implications:

Managing a Retirement Portfolio: Do Annuities Provide More Safety?

Spitzer, J.J. (2009). Managing a retirement portfolio: Do annuities provide more safety? Journal of Financial Counseling and Planning Education, 20(1), 58-69.

Brief Description:  One of the biggest concerns of retirees is the risk of outliving their assets. This study used a technique called “bootstrap simulations” to estimate the probability of someone outliving a retirement portfolio as increasing proportions of a tax-deferred account are annuitized. It also examined the sizes of the portfolio balance as the annuity amount increased. Required …

Changes in Debt and Change in Marital Satisfaction

 

Dew, J. (2007). The relationship between debt change and marital satisfaction change in recently married couples. Family Relations, 57 (1), 60-71.

Brief Description: Recently married couples report debt as one of their top concerns. This study assesses how changes in consumer debt (e.g., credit card debt) relate to changes in marital satisfaction. Consumer debt assumption is associated with recently married couples’ cutting back on spending time together and arguing about money more frequently. These changes predict declines in marital satisfaction. …