scholarly journals Use of Financial Planners and Portfolio Performance

2016 ◽  
Vol 27 (1) ◽  
pp. 92-108 ◽  
Author(s):  
Shan Lei ◽  
Rui Yao
Keyword(s):  
Financial Planning ◽  
Empirical Support ◽  
Potential Effect ◽  
Wealth Accumulation ◽  
Portfolio Performance ◽  
Survey Of Consumer Finances ◽  
Consumer Finances ◽  
Financial Planners ◽  
Household Portfolio ◽  
Using Data

Using data from the 2013 Survey of Consumer Finances, this study evaluates the potential effect of using financial planners on household portfolio performance, which was measured by Sharpe Ratio. Results revealed that households that reported using financial planners demonstrated better portfolio performance than those that did not. This lends empirical support to claims that professional financial planning services provide value to clients. Implications for investors, financial planning professionals, and researchers are discussed. Considering the direct relation between wealth accumulation and portfolio performance, financial planners should explore ways in which to work with those with limited resources to help them realize the benefits of using financial planners and improve their portfolio performance as a result.

scholarly journals Financial planning and household portfolio performance: evidence from the 1998-2013 survey of consumer finances

2015 ◽  
Author(s):  
◽  
Shan Lei
Keyword(s):  
Financial Planning ◽  
Empirical Support ◽  
Professional Services ◽  
Future Research ◽  
Individual Investors ◽  
Portfolio Performance ◽  
Survey Of Consumer Finances ◽  
Planning Service ◽  
Consumer Finances ◽  
Household Portfolio

This dissertation used datasets from the 1998, 2001, 2004, 2007, 2010 and 2013 Survey of Consumer Finances (SCF) to evaluate the effect of using financial planning services on households' portfolio performance. In this dissertation, portfolio performance was measured by portfolio Sharpe Ratio. Financial planning services were considered to be the professional services provided by lawyers, accountant and financial planners in this dissertation. After controlling other factors, the findings lend empirical support to the belief that financial planning service delivered by professionals benefit households in higher possibility of reaching better portfolio performance. This lends empirical support to claims that professional financial planning services provide value to clients. Implications for individual investors, financial planning professionals, and future research are discussed.

Homeownership and Financial Strain Following the Collapse of the Housing Market: A Comparative Study on Loan Delinquencies Between Black and White Households

2015 ◽  
Vol 26 (1) ◽  
pp. 79-93 ◽  
Author(s):  
Richard F. Bieker ◽  
Yoonkyung Yuh
Keyword(s):  
Housing Market ◽  
Housing Prices ◽  
Potential Effect ◽  
Financial Strain ◽  
Residential Housing ◽  
Black And White ◽  
Consumer Finances ◽  
Time Period ◽  
Using Data ◽  
The Impact

The objectives of this study were to evaluate the extent to which homeownership contributed to household financial strain as measured by loan delinquency after the onset of the recent housing market crash, and to examine if the impact of homeownership on household financial strain differed for Black and White households. Using data from the 2010 Survey of Consumer Finances, we found that, after controlling for other factors, a household's housing preferences had a potential effect on the likelihood of experiencing financial strain following the collapse of residential housing prices. In addition, Black homeowners were more likely to have experienced financial strain following the housing collapse than were White homeowners, regardless of the time period in which the home was purchased. The implications of the findings for public policy, personal financial planning and education, and further research are presented.

scholarly journals Inequality and market concentration, when shareholding is more skewed than consumption

2019 ◽  
Vol 35 (3) ◽  
pp. 550-563 ◽  
Author(s):  
Joshua Gans ◽  
Andrew Leigh ◽  
Martin Schmalz ◽  
Adam Triggs
Keyword(s):  
The United States ◽  
Relative Distribution ◽  
Consumer Expenditure ◽  
Survey Of Consumer Finances ◽  
Consumer Expenditure Survey ◽  
Consumer Finances ◽  
Equity Ownership ◽  
Using Data ◽  
The Impact ◽  
Over Time

AbstractEconomic theory suggests that monopoly prices hurt consumers but benefit shareholders. But in a world where individuals or households can be both consumers and shareholders, the impact of market power on inequality depends in part on the relative distribution of consumption and corporate equity ownership across individuals or households. The paper calculates this distribution for the United States, using data from the Survey of Consumer Finances and the Consumer Expenditure Survey, spanning nearly three decades from 1989 to 2016. In 2016, the top 20 per cent consumed approximately as much as the bottom 60 per cent, but had 15 times as much corporate equity. Because ownership is more skewed than consumption, increased mark-ups increase inequality. Moreover, over time, corporate equity has become even more skewed relative to consumption.

Federal Wealth Policy and the Perpetuation of White Supremacy

2021 ◽  
pp. 003464462110008
Author(s):  
Robert B. Williams
Keyword(s):  
White Supremacy ◽  
Household Wealth ◽  
Wealth Accumulation ◽  
Survey Of Consumer Finances ◽  
The Past ◽  
Consumer Finances ◽  
Tax Exemptions ◽  
Tax Deductions ◽  
Tax Benefits ◽  
The U.S

Since its inception, the U.S. government has strongly promoted the expansion of White wealth. These past policies have created the current wealth gaps in which White households typically hold >10 times the wealth held by Black or Latinx households. The tradition continues today. Using nine tax deductions, the federal government currently supports household wealth accumulation by nearly $640 billion annually. Although they make no overt mention of race, these tax exemptions are designed specifically to help wealthier households. Using evidence from the Survey of Consumer Finances, this article estimates the racial shares of these tax benefits and shows a clear pattern of racial favoritism. In addition, repeated efforts to eliminate the estate and gift taxes mean more intergenerational wealth is tax-exempted. As in the past, our current federal wealth policies are promoting White supremacy.

scholarly journals Invest As I Say, Not As I Do? Gender Dif-ferences In Financial Risk Preferences

2011 ◽  
Vol 1 (1) ◽  
Author(s):  
Nancy Ammon Jianakoplos
Keyword(s):  
Gender Differences ◽  
Asset Allocation ◽  
Financial Risk ◽  
Risk Preferences ◽  
Financial Risks ◽  
Financial Assets ◽  
Survey Of Consumer Finances ◽  
Risky Assets ◽  
Consumer Finances ◽  
Using Data

This paper examines gender differences in stated versus observed financial risk preferences. The responses of women versus men to a question regarding financial risk preferences are compared to the proportion of risky assets held in their portfolios using data from the 1995 Survey of Consumer Finances. The data show that women are more likely to express an unwillingness to take financial risks. Stated financial risk preferences are found to be consistent with observed risk preferences at the ordinal, but not the quantitative, level. Contradicting their stated risk preferences, risky assets constitute, on average, one-third of the financial assets of households that indicate they are unwilling to take any financial risks. Financial planners and advisers frequently use a clients expressed willingness to take on risk as an important determinant in asset allocation recommendations. Consistent gender differences in these responses, in addition to inconsistencies between the clients stated risk preferences and observed portfolio allocation, may lead advisers to make inappropriate recommendations.

scholarly journals Impact of Economic Shocks on Cumulative Advantage Processes: Recession, Recovery, and Trajectories of Inequality

2021 ◽  
Vol 5 (Supplement_1) ◽  
pp. 508-508
Author(s):  
Stephen Crystal
Keyword(s):  
Potential Role ◽  
Population Level ◽  
Survey Of Consumer Finances ◽  
Subsequent Recovery ◽  
The Great Recession ◽  
Consumer Finances ◽  
Age Cohort ◽  
Using Data ◽  
The Life Course

Abstract This study compares the effect of the 2008 recession and subsequent recovery across generational cohorts by evaluating age-cohort trajectories of income inequality. Using data from the 2007 to 2016 waves of the Survey of Consumer Finances, we examine the trajectory of inequality for the overall population and by cohort in years spanning the Great Recession and subsequent recovery. We find that increases in per-capita income and wealth observed at the population-level during the recovery were not reflected among households below the median, leading to increasing inequality. Within cohorts, we observe growing inequality within cohorts in their primary working years. Findings are consistent with a model of integrative cumulative dis/ advantage, which predicts increasing within-cohort inequality over the life course influenced both by persistent micro- and macro-level processes of increasing heterogeneity. Our analyses highlight the potential role of extreme business cycle fluctuations, booms and busts, to exacerbate this underlying process.

scholarly journals Financial Profiles of Workers Most Vulnerable to Coronavirus-Related Earnings Loss in the Spring of 2020

2020 ◽  
Vol 2020 (093) ◽  
pp. 1-27
Author(s):  
Brooke Helppie-McFall ◽  
◽  
Joanne W. Hsu ◽  
Keyword(s):  
People Of Color ◽  
Income Shocks ◽  
Survey Of Consumer Finances ◽  
Consumer Finances ◽  
Earnings Losses ◽  
Policy Measures ◽  
Using Data ◽  
Wage Earners

In spring 2020, the COVID-19 pandemic and related shutdowns had huge effects on unemployment. Using data from the Survey of Consumer Finances, we describe the financial profiles of US families whose workers were most vulnerable to coronavirus-related earnings losses in the spring of 2020, based on whether a particular worker was deemed "essential" and whether a worker's job could be conducted remotely. We use descriptive analytic techniques to examine how families' baseline financial situations would allow them to weather COVID-shutdown-related earnings losses. We find that families with non-teleworkable workers who were most vulnerable to layoff also had both demographic and financial profiles that are associated with greater vulnerability to income shocks: non-teleworkable families were more likely to be people of color and single wage-earners, and also to have less savings. The median non-teleworkable family, whether in non-essential or essential occupations, held only three weeks of income in savings, underscoring the importance of policy measures to blunt the financial effect of the COVID crisis.

Understanding the Unequal Post-Great Recession Wealth Recovery for American Families

2017 ◽  
Vol 17 (4) ◽  
Author(s):  
Sisi Zhang ◽  
Shuaizhang Feng
Keyword(s):  
Great Recession ◽  
Wealth Distribution ◽  
Wealth Accumulation ◽  
Survey Of Consumer Finances ◽  
The Great Recession ◽  
Consumer Finances ◽  
Level Data ◽  
Family Level ◽  
The Mean ◽  
Race Ethnicity

AbstractThe wealth of US families had not returned to its prerecession level by 2013, six years after the onset of the Great Recession. This article provides a comprehensive analysis of this slow and uneven episode of wealth recovery, using family-level data from the Survey of Consumer Finances 1989–2013. Both descriptive results and regressions controlling for life cycle wealth accumulation show that families of color and less-educated families are falling behind in wealth recovery because their wealth portfolios are concentrated in housing, which has recovered very slowly. The decomposition results suggest that homeownership plays a significant role in explaining wealth disparity by race, ethnicity, and education at the mean and bottom of the wealth distribution. Understanding the uneven wealth recovery has important implications for redesigning asset-related policies and narrowing wealth gaps.

scholarly journals Wealth, Health, and Disability Gaps at Midlife: Implications for Disparate Retirement Outcome

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 586-586
Author(s):  
Stephen Crystal
Keyword(s):  
Health Inequality ◽  
Generation X ◽  
Late Life ◽  
Wealth Accumulation ◽  
Survey Of Consumer Finances ◽  
Policy Choices ◽  
Consumer Finances ◽  
Increasing Risk ◽  
Deaths Of Despair ◽  
The Impact

Abstract Late-life economic outcomes in coming years will be strongly shaped by the impact of economic and health experience for cohorts now at midlife. These cohorts have experienced lagging and increasingly disparate wealth accumulation, along with challenges to health and earning potential that augur highly disparate retirement futures. For example, analyses of Survey of Consumer Finances data indicate that in 2016, members of Generation X had mean assets that were only 39% those of the boomers in that year. Increasing risk of “deaths of despair” among individuals in midlife have been accompanied by increases in disability that threaten the ability of those members of these cohorts who are not in the educationally advantaged minority to achieve secure retirement futures, particularly in the context of increasing employment precarity. This presentation will review recent findings on midlife wealth and health inequality, implications for retirement futures, and policy choices facing a new Presidential administration.

scholarly journals Employer-Provided Health Insurance and Retirement Behavior

ILR Review ◽  
1994 ◽  
Vol 48 (1) ◽  
pp. 124-140 ◽  
Author(s):  
Alan L. Gustman ◽  
Thomas L. Steinmeier
Keyword(s):  
Health Insurance ◽  
Private Health Insurance ◽  
Health Benefits ◽  
Retirement Age ◽  
Survey Of Consumer Finances ◽  
Consumer Finances ◽  
National Medical ◽  
Retirement Behavior ◽  
Using Data ◽  
The Cost

Using data from the 1969–79 Retirement History Study, the 1977 National Medical Care Expenditure Survey, the 1983–86 Survey of Consumer Finances, and the 1988 Current Population Survey, the authors analyze, with a structural retirement model, the effect on retirement of employer-provided health benefits. Such benefits, they find, tend to delay retirement until the age of eligibility and afterward to accelerate it. The net effect is small: employer-provided health benefits lowered male retirement age by only about 1.3 months. Valuing health benefits at the price of private health insurance to unaffiliated men, rather than at the cost to employers, increases the effect. Ignoring retiree health benefits in retirement models creates only a small bias.

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