ERIC Number: EJ1185311
Record Type: Journal
Publication Date: 2017
Pages: 11
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-1052-3073
EISSN: N/A
The Impact of Financial Advice Certification on Investment Choices
Guillemette, Michael A.; Jurgenson, Jesse B.
Journal of Financial Counseling and Planning, v28 n1 p129-139 2017
The purpose of this study is to investigate whether a professional designation affects consumer choice behavior within the area of investment decision making. Forty-six participants were endowed with real money and received hypothetical investment advice from a certified financial planner (CFP) Professional and a stockbroker. Among low-income households, advice from a CFP altered investor choice behavior within hypothetical education and retirement savings accounts. When participants made investment decisions using education funds and received advice from a CFP, the mean expected value of their investment choices was $43,913, compared to $25,870 given advice from a stockbroker. When investment decisions were made using retirement funds, the average expected value given advice from a CFP and a stockbroker was $53,424 and $33,207, respectively. If an investor was risk-neutral or risk-seeking, investment choices were improved when advice was rendered by a CFP relative to a stockbroker.
Descriptors: Financial Services, Money Management, Consumer Economics, Investment, Low Income Groups, Retirement Benefits, Certification, Consultants, Decision Making Skills, Decision Making, Hypothesis Testing, Statistical Analysis, Incidence, Professional Identity, Behavior Change
Association for Financial Counseling and Planning Education. 1500 West Third Avenue Suite 223, Columbus, OH 43212. Tel: 614-485-9650; Fax: 614-485-9621; Web site: http://afcpe.org
Publication Type: Journal Articles; Reports - Research
Education Level: N/A
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Missouri
Grant or Contract Numbers: N/A