Choosing Outcomes versus Choosing Products: Consumer-Focused Retirement Investment Advice
Abstract
Investing for retirement is one of the most consequential yet daunting decisions consumers face. We present a way to both aid and understand consumers as they construct preferences for retirement income. The method enables consumers to build desired probability distributions of wealth constrained by market forces and the amount invested. We collect desired wealth distributions from a sample of working adults, provide evidence of the technique's reliability and predictive validity, characterize individual- and cluster-level differences, and estimate parameters of risk aversion and loss aversion. We discuss how such an interactive method might help people construct more informed preferences. (c) 2008 by JOURNAL OF CONSUMER RESEARCH, Inc..Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by University of Chicago Press in its journal Journal of Consumer Research.
Volume (Year): 35 (2008)
Issue (Month): 3 (08)
Pages: 440-456
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JCR/
Related research
Keywords:References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Stefan Zeisberger & Dennis Vrecko & Thomas Langer, 2012. "Measuring the time stability of Prospect Theory preferences," Theory and Decision, Springer, vol. 72(3), pages 359-386, March.
- Dimitris Georgarakos & Roman Inderst, 2011.
"Financial Advice and Stock Market Participation,"
BCL working papers
51, Central Bank of Luxembourg.
- Dimitris Georgarakos & Roman Inderst, 2011. "Financial advice and stock market participation," Working Paper Series 1296, European Central Bank.
- Phillip Monin, 2013. "On a dynamic adaptation of the Distribution Builder approach to investment decisions," Papers 1301.0907, arXiv.org.
- Gopi Shah Goda & Colleen Flaherty Manchester, 2010.
"Incorporating Employee Heterogeneity into Default Rules for Retirement Plan Selection,"
NBER Working Papers
16099, National Bureau of Economic Research, Inc.
- Gopi Shah Goda & Colleen Flaherty Manchester, 2013. "Incorporating Employee Heterogeneity into Default Rules for Retirement Plan Selection," Journal of Human Resources, University of Wisconsin Press, vol. 48(1), pages 198-235.
- Gopi Shah Goda & Colleen Flaherty Manchester, 2010. "Incorporating Employee Heterogeneity Into Default Rules for Retirement Plan Selection," Working Papers, Center for Retirement Research at Boston College wp2010-5, Center for Retirement Research.
- Carole Bernard & Jit Seng Chen & Steven Vanduffel, 2013. "All investors are risk averse expected utility maximizers," Papers 1302.4679, arXiv.org.
- Katerina Straznicka, 2012. "Temporal stability of risk preference measures," Working Papers halshs-00768437, HAL.
- Hazel Bateman & Christine Eckert & John Geweke & Jordan Louviere & Stephen Satchell & Susan Thorp, 2011. "Financial Competence, Risk Presentation and Retirement Portfolio Preferences," Working Papers 201120, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
- Katerina Straznicka, 2012. "Temporal stability of risk preference measures," Working Papers 1236, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:ucp:jconrs:v:35:y:2008:i:3:p:440-456For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

