The changing assessment of risk for young investors

Authors

  • Kristine L. Beck Department of Finance, Financial Planning and Insurance, California State University
  • Hsin-Hui Chiu Department of Finance, Financial Planning and Insurance, California State University
  • Inga Timmerman Department of Accounting and Finance, University of North Florida

DOI:

https://doi.org/10.61190/fsr.v31i2/3.3528

Keywords:

Risk tolerance, Risk assessment, Investment risk

Abstract

Investment advice is changing to incorporate new products and platforms, and the rate of change is likely to accelerate as millennials and Gen Z increase their involvement in investment markets. Using survey methodology, we examine the changing landscape of risk tolerance for young people, concluding that the typical risk assessment tools advisors use may not be as applicable to the next generation of investors. We find that the components that drive willingness to take risk are interest in investments, self-reported investment risk tolerance, and ownership of investment accounts. Our findings indicate that it is time to start assessing risk differently.1,2,3

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Published

2023-12-15

How to Cite

Beck, K. L., Chiu, H.-H., & Timmerman, I. (2023). The changing assessment of risk for young investors. Financial Services Review, 31(2/3), 97–106. https://doi.org/10.61190/fsr.v31i2/3.3528

Issue

Vol. 31 No. 2/3 (2023): Summer-Fall 2023

Section

New Original Submission

License

Copyright (c) 2023 Kristine L. Beck, Hsin-Hui Chiu, Inga Timmerman

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