Roth IRAs were introduced in the late 1990s and provide another option for tax-sheltered retirement savings. Because determining the benefits of a Roth IRA is a complex decision, we hypothesize that cognitive ability and having a financial planner have significant impacts on the timing and...

We study the determinants of the stated probability of purchase for a deferred annuity that pays out at age 80 or 85, which we reframe as “longevity insurance,” using the Survey of Household Financial and Risk Management. Our results indicate that younger cohorts, women, people who do not...

Despite the growing use of financial advisors, relatively little is known about the impact that financial advisors have on actual wealth outcomes among older adults. Using data from the Study of Assets and Health Dynamics Among the Oldest Old (AHEAD), we find that using a financial advisor is...

The Millennial generation in the U.S. faces greater expected retirement needs, yet it has come of age in a period of declining household savings. A combination of reduced defined benefit availability, threats to Social Security and Medicare, increasing public debt, rising taxes, reduced...

An inability to accurately detect quality prior to or even after purchase distinguishes professional advice from other consumer goods or services. A consumer that is unable to assess the difference between an advisor's recommendation and the ideal recommendation is vulnerable to the self-serving...

Like any consumer product, mutual funds are not free, and the associated expenses impact performance. Expense ratios and loads are negatively related to performance (Carhart, 1997; Dellva & Olson, 1998). As such, financial planners ought to educate their clients about the importance of minimizing...

Inter vivos gifts result in lower net-of-tax transfer taxes than transfers at death. However, few individuals make taxable gifts, even if they are very likely to have a taxable estate. Using the 2007 administration of the Survey of Consumer Finances (SCF), we explore the role that financial...

Investment fraud constitutes a major problem in the United States. While several studies have investigated various aspects of fraud, none have analyzed victim characteristics of investment fraud. This study posits five fraud languages that, when used by fraudsters, shut down the perceived need...

Throughout their lifetimes, consumers use financial service professionals (FSPs) to achieve important financial goals and ensure financial wellbeing, often turning to FSPs as their levels of income and investable assets necessitate professional guidance. This study evaluates the impact of...

This paper presents findings from neuroscience, neuro-finance, neuro-economics, behavioral finance, and behavioral economics in the context of a two-system model of human decision-making, labeled as the “rider” and the “elephant”. The rational “rider” system is characterized by...