Risk Preference, Asset Allocation, and Seniors’ Satisfaction

Maintaining clients' financial satisfaction is a primary goal of financial planners. Previous research has found that net worth, income, and demographic characteristics are relevant to an individuals' financial satisfaction. However, no existing research identifies whether the alignment between risk preferences and portfolio-risk level affects financial satisfaction. This research will investigate whether or not an individual feels more satisfied if his or her equity allocation aligns with his or her risk preferences. The finding of this study could potentially help financial planners better understand their clients, maintain good relationship with clients, improve overall client well-being, and provide advice that best fits clients' needs