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Misinformed and informed asset allocation decisions of self-directed retirement plan members

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  • Bhandari, Gokul
  • Deaves, Richard
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    Abstract

    Most defined contribution pension plan members misunderstand asset allocation, but those with higher levels of wealth managing their own money are less likely to be confused. Younger, more-educated, higher-earning advice-receiving males with a planner mindset hold more equity. Notably, an understanding of asset allocation accentuates the impact of the key factors age, income and a planner mindset.

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    File URL: http://www.sciencedirect.com/science/article/B6V8H-4RFSCRG-1/2/224a51eca79fea033d050c00ce0ae53e
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 29 (2008)
    Issue (Month): 4 (August)
    Pages: 473-490

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    Handle: RePEc:eee:joepsy:v:29:y:2008:i:4:p:473-490

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    Web page: http://www.elsevier.com/locate/joep

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    8. Ackert, Lucy F. & Church, Bryan K. & Englis, Basil, 2002. "The asset allocation decision and investor heterogeneity: a puzzle?," Journal of Economic Behavior & Organization, Elsevier, vol. 47(4), pages 423-433, April.
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    Cited by:
    1. Veld-Merkoulova, Yulia V., 2011. "Investment horizon and portfolio choice of private investors," International Review of Financial Analysis, Elsevier, vol. 20(2), pages 68-75, April.
    2. Croy, Gerry & Gerrans, Paul & Speelman, Craig, 2010. "The role and relevance of domain knowledge, perceptions of planning importance, and risk tolerance in predicting savings intentions," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 860-871, December.

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