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Welcome to the 2018 AFS Annual Meeting, being held this year, in conjunction with FPA in Chicago!

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Oral Session [clear filter]
Tuesday, October 2
 

2:30pm CDT

E1a - Risky Retirement: The Impact of Retirement on Physical Health [CFP End-of-Life Issues]
Research into the impact of poor health on retirement is popular but only recently have researchers began to flip the question to estiamte the effects of retirement on physical health. This study takes a closer look at the implications of early retirement to determine the long-term repercussions of early retirement.

Author(s): Christopher Crouch, Charlene Kalenkoski

Presenters
CE

Christopher Edwin Crouch

Texas Tech University


Tuesday October 2, 2018 2:30pm - 3:20pm CDT
Michigan 1A

2:30pm CDT

E1b - The Importance of Planning Horizon in End-of-Life Financial and Health Planning [CFP End-of-Life Issues]
This study uses the 2014 Health and Retirement Study (HRS) to examine the predictors of End of Life (EOL) planning among adults age 50 and over and the integration between end of life (EOL) financial and EOL health planning, and the association of financial planning time horizon with EOL financial and EOL health planning documents. The results indicate that both financial and health end-of-life documents were more common among those with greater wealth and more educated individuals. The financial planning time horizon affected the EOL financial planning, but not EOL health planning. This suggests that the financial planning horizon measurement may be limited to financial behaviors, rather than broadly predictive of long-term planning behaviors in other domains.

Author(s): Reem Hussein, Russell James, III

Presenters
RH

Reem Hussein

PhD Candidate, Texas Tech University


Tuesday October 2, 2018 2:30pm - 3:20pm CDT
Michigan 1A

2:30pm CDT

E2a - Testing a Pecking Order Model of Household Capital Structure
This study tests an adaptation of the Pecking Order theory of captial structure to the household. The sample data used for this study are extracted from the Health and Retirement Study (HRS). Following the general methods common in the corporate finance literature, the household funding deficit is constructed and a fixed effects model of the change in debt is tested. Implications for future research and practice are discussed.

Author(s): David Allen Ammerman

Presenters
avatar for David Allen Ammerman

David Allen Ammerman

Assistant Professor of Finance, West Texas A&M University


Tuesday October 2, 2018 2:30pm - 3:20pm CDT
Michigan 1B

2:30pm CDT

E2b - Two-Factor Risk Preference and Credit Card Risk
This paper extends on previous research into the effects of financial self-efficacy (FSE) and risk tolerance on the financial satisfaction of credit-card users by integrating both of these measures of risk preferences.  We find that FSE and risk tolerance are similar in that they both predict risk preferences, however they differ in how they operate.  This suggests that planners using both a risk tolerance assessment and an FSE can better anticipate thir clients risk preferences and reactions than those who use a risk tolerance assessment alone.

Author(s): Patrick Payne, Sarah Asebedo

Presenters
PP

Patrick Payne

Assistant Professor of Finance, Western Carolina University


Tuesday October 2, 2018 2:30pm - 3:20pm CDT
Michigan 1B

2:30pm CDT

E3a - Can Behavioral Nudges Help Overcome Thinking Blind-Spots on Investment Goals?: Results from Two Studies
There are two key components when it comes to effective financial planning: (a) identifying the investment goals that are important to investors; and (b) prioritizing those investment goals. However, when it comes to the first component – identifying investment goals that matter – many people, when left up to their own devices, fail to identify half of the objectives that they later recognize to be important. It’s as if people don’t know what is most important to themselves. For the second component, prioritizing investing goals, the inability to do so effectively may lead to misallocations (e.g., overweighing short-term goals over long term ones) which may adversely impact an investor’s financial well-being. However, there is no consensus in the literature on how to help investors prioritize multiple goals effectively. In two studies, we apply and test the effectiveness of behavioral techniques to improve these two components of financial planning.

Author(s): Ray Sin, Ryan O. Murphy, Samantha Lamas, Susan Sullivan

Presenters
RS

Ray Sin

Behavioral Scientist, Morningstar, Inc


Tuesday October 2, 2018 2:30pm - 3:20pm CDT
Michigan 1C

2:30pm CDT

E3b - Variance in Client’s EEG Responses When Using Different Communication Methods: Ways to Ask Questions to Obtain More Accurate Answers
This study utilizes neuro-technology to measure the clients’ psychophysiological status by comparing two types of communication methods, written communication and verbal communication. Specifically, the electroencephalography (EEG) measures clients’ responses to each communication method. In other words, this study will investigate how clients react to two types of communications by employing quantitative EEG signal analysis. The results of this study will have implications for the methods used to obtain sensitive information from clients. The results of this study have important implications for financial planners and advisors, suggesting that professionals should be more careful when asking clients sensitive questions. The written communication contained more questions, and the questions were more sensitive and complicated than those given in the oral communication. Further analysis with brain waves (alpha, beta, theta, and gamma) will come if the study is accepted to AFS conference.

Author(s): Wookjae Heo, Ann-Marie Junker, Youngdeok Lee

Presenters
avatar for Wookjae Heo

Wookjae Heo

Assistant Professor, South Dakota State University


Tuesday October 2, 2018 2:30pm - 3:20pm CDT
Michigan 1C