To estimate the monetary value of ideal financial planning advice, we address three types of benefits that planners provide: increasing wealth, preventing loss, and smoothing consumption. We discuss, then reject the possibility of using survey data to obtain valid estimates of the benefit of...

The purpose of this research was to investigate the effects of racial/ethnic status on the ratio of financial obligations payments to income among U.S. renter households. The proportion of homeowner households with a ratio over 40% has decreased since 2007, but the proportion of renter...

Using a sample of 1,215 US retail investors, we provide evidence on the effect of investment literacy and of investment literacy overconfidence on the likelihood of purchasing securities on margin, and also, among those who had purchased securities on margin, the likelihood of experiencing a...

Some textbooks suggest using financial ratios to provide simple indicators of whether households are making appropriate financial decisions. We investigate three investment ratios mentioned in textbooks: investments to net worth, investments to annual income, and investments to total assets. We...

Between 2006 and 2008, 9% of Korean households had an income decrease of 50% or more, a rate almost identical to the U.S., despite the much lower impact of the global financial crisis on Korea. We ran a logistic regression to determine factors related to the likelihood of a substantial income...