Does the source of money determine retirement investment choices?

Authors

  • Andrea Anthony Golden Gate University
  • Kristine Beck California State University Northridge
  • Inga Chira California State University Northridge

DOI:

https://doi.org/10.61190/fsr.v26i3.3321

Keywords:

403(b), Investment choices, Highly educated individuals, Investment risk

Abstract

Using a unique dataset of actual investment choices of Oregon State University employees, we investigate how investment choices differ among (1) the optional retirement plan (ORP) funded by the employer and (2) the investments in 403(b) accounts funded by employees themselves using voluntary salary reduction. We find that the level of risk associated with voluntary, salary reduction investments in 403(b) accounts is lower than the risk these same employees are currently taking in their employer funded 401(a) accounts. We also investigate whether the choice of the provider has a significant impact on the asset allocation chosen by the employees and find that participant investment choices in Fidelity are riskier than the choices made by those in TIAA-CREF.

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Published

2017-09-30

How to Cite

Anthony, A., Beck, K., & Chira, I. (2017). Does the source of money determine retirement investment choices?. Financial Services Review, 26(3), 241–254. https://doi.org/10.61190/fsr.v26i3.3321

Issue

Vol. 26 No. 3 (2017): Fall 2017

Section

New Original Submission

License

Copyright (c) 2014 Academy of Financial Services

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