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...

Changes in average FinaMetrica monthly risk tolerance scores were evaluated during the January 2007 to May 2012 time period that spanned the global financial crisis. The research objective was to test whether fluctuations in equity returns influence average risk tolerance scores over time. A...

We investigate whether myopic behavior influences respondents' risk perception of future stock market returns. Using the 2012 wave of the Health and Retirement Study, we find that investors who are myopic (follow the stock market “very closely” or “somewhat closely”) are more likely to...

The literature on risk tolerance overwhelmingly justifies the use of questionnaires based on validity and reliability or psychometric testing, but there has been little research examining the relation between questions and actual investor portfolio behavior. This study examines risk tolerance...

This article focuses on the effect of race and ethnicity on financial risk tolerance. Blacks and Hispanics are less likely to be willing to take some financial risk but more likely to be willing to take substantial financial risk than Whites, after controlling for the effects of other variables....