Describing investor profiles

A test of the associations among financial knowledge, confidence, and help and information sources

Authors

  • Abed Rabbani Department of Personal Financial Planning, University of Missouri
  • John E. Grable Department of Financial Planning, Housing and Consumer Economics, University of Georgia
  • Ann Woodyard Department of Financial Planning, Housing and Consumer Economics, University of Georgia
  • Zheying Yao Department of Personal Financial Planning, University of Missouri

DOI:

https://doi.org/10.61190/fsr.v27i3.3395

Keywords:

Financial planning, Decision-making, Investments, Knowledge confidence

Abstract

Faced with multiple asset choices for use when developing a household portfolio, investors often turn to various sources of help and information for help before making an investment decision. This study used a large, nationally drawn dataset of individuals who own financial assets to explore the relationships between and among types of investments owned, knowledge characteristics, investor confidence, and help and information sources. General profiles of investors emerged from the analyses that can be used by financial planners to better understand the unique profiles of those who own certain types of investments. Investors who exhibited over-confidence in their financial knowledge were more likely to hold annuities, cash value life insurance, and commodities. It was also determined that financial planners play an important role in promoting diversification and mitigating portfolio risk.

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Published

2018-09-30

How to Cite

Rabbani, A., Grable, J. E., Woodyard, A., & Yao, Z. (2018). Describing investor profiles: A test of the associations among financial knowledge, confidence, and help and information sources. Financial Services Review, 27(3), 209–230. https://doi.org/10.61190/fsr.v27i3.3395

Issue

Vol. 27 No. 3 (2018): Fall 2018

Section

New Original Submission

License

Copyright (c) 2018 Academy of Financial Services

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