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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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Poster Session [clear filter]
Tuesday, October 2
 

4:30pm

P101 - Access to Financial Education in High School and Its Effect on an Individual’s Preferences towards Debt at the Time of a Home Purchase.
Data from the 2015 National Financial Capability Study and The Federal Reserve Bank of St. Louis are merged and analyzed to estimate the effect that access to financial education in high school has on the percentage of funds that are borrowed to acquire a home. A multivariate regression equation is estimates the relationship. The results suggest that those with access to financial education in high school borrow less, all else equal, when compared to those without access to financial education.

Author(s): Leobardo Diosdado, Charlene Kalenkoski, Donald Lacombe

Presenters
LD

Leobardo Diosdado

Texas Tech University


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P102 - Do Sources of Financial Education Affect Financial Knowledge and Financial Confidence?
This study uses 2015 National Financial Capability Study to examine the effects of different sources of financial education on individuals’ financial knowledge and financial confidence. The sources examined include parental and family financial influence, financial education learned from high school and college courses, workplace financial education programs, and combinations of these sources. Results showed that financial education can increase financial knowledge and financial confidence. Generally, those who obtained financial education from all three sources were more likely to be highly knowledgeable about financial matters and highly confident toward their financial capability. Four financial knowledge-financial confidence groups were established to further examine the effects of financial education sources and demographic and socioeconomic characteristics. Findings of this study can reinforce the significance of financial education and shed a light on the development and evaluation of financial education programs for policy makers and financial educators.

Author(s): Lu Fan, Lini Zhang

Presenters
LF

Lu Fan

Assistant Professor, University of Missouri


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P103 - The Association between Expectations of Public Transfers and Individual Consumption Decisions: Findings from a Panel Study
This study examines the association between peoples' current period consumption decisions and their expectations of receiving public transfers in the future. Using the 3 most recent waves of a panel data of elderly respondents 50 years or older, this study finds that expectations of receiving public transfers in the future was positively associated with peoples' current consumption decisions after controlling for a number of socioeconomic and demographic related variables. The findings have immediate policy relevance and provides insight into the financial decision making process of households expecting future public transfers.

Author(s): Young Joo Choung, Swarn Chatterjee

Presenters
avatar for Swarn Chatterjee

Swarn Chatterjee

Professor, University of Georgia


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P104 - Professional Judgement or Just Another Opinion?
How do professional advisors make trade-offs between conflicting attributes of a client when determining a suitable or "best interest" profile for them? Risk tolerance, risk capacity, loss aversion, composure, knowledge, experience, time horizon, need, liquidity and more may play a role. Initial research found a startling lack of consistency between professional advisors as to what factors are important and how they behave relative to each other. Only time horizon for investing is universally recognized but even then a wide variance in opinion leads to very different assessments of its impact for clients. This paper utilizes a combination of two methods of inquiry, surveys of advisors using binary decisions to try and determine if any consistency or consensus exists, and secondly, in depth interviews of 8 "recognized experts" in the field. The outcome is to document any common heuristics that advisor should consider as a best practice.

Author(s): Shawn Brayman

Presenters
avatar for Shawn Brayman

Shawn Brayman

CEO, PlanPlus


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P105 - Risk Tolerance Profile of Cash Value Life Insurance Owners
Life insurance, a risk management tool, generally provides ways to protect against the financial loss due to an individual’s death. This study investigates the risk tolerance profile of cash value life insurance owners and attempts to investigate the association between life insurance ownership and subjective attitude toward different domains of risk by comparing with two logistic models. Inconsistencies exist with risk tolerance in different domains; specifically, life insurance owners are risk averse, in general, but they are risk takers in other domains.

Author(s): Zheying Yao, Dalisha D. Herring, Abed G. Rabbani

Presenters
ZA

Zheying (Anthea) Yao

PhD Student, University of Missouri - Columbia


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P106 - Signaling Effect of Socially Conscious Mandate of Mutual Funds
The purpose of this paper is to investigate whether having a socially conscious mandate sacrifices financial performance of a mutual fund, as compared to mutual funds that have a comparable average ESG score even without having a responsibility or sustainability mandate. Previous studies have shown that having an intentional socially conscious mandate can limit the investment choices for the mutual funds. This study uses the data of all mutual funds domiciled in the United State that have been assessed by Morningstar® with ESG scores. We study if the risk-adjusted performance with a socially conscious mandate is statistically different from other ESG-rated funds. The second part of the paper investigates whether the differential flow of mutual funds with a socially conscious mandate is statistically different from funds that do not have a socially conscious mandate.

Author(s): Aman Sunder, Jennifer Coombs, Nandita Das, Bernadette Ruf, Dakota Moran

Presenters
avatar for Aman Sunder

Aman Sunder

Program Chair, College for Financial Planning



Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P107 - The Effects of Tax Incentives on Educational, Religious, and Political Charitable Giving
The academic, tax, and financial planning communities have become more interested in how individual tax deductions, exemptions, and credits—in other words, tax incentives— affect charitable contributions, due to some major changes in tax policies.  People respond differently to these changes based on their personal preferences towards various charitable causes, as well as their budget constraints and levels of financial literacy. To address this, the current study examines tax effects on educational, political, and religious charitable contributions using nationally representative, cross-sectional data (2012-2017) from the Consumer Expenditure Survey (CEX).

Author(s): Dava Dorjsuren

Presenters
DD

Dava Dorjsuren

Instructor/PhD Student, Texas Tech University


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P108 - The Impact of Mortality Salience on Asset Decumulation Decision
Recent research has identified that mortality salience has significant impacts on annuity purchase decisions, including the decision to avoid purchasing annuities and the decision to purchase annuities with a bequest provision.  This study investigates whether mortality salience will also influence the broader issue of an individual’s asset decumulation decision in retirement.  Theoretical models from psychology and economics suggest that it will. Using a randomly assigned experimental test, we find that increasing mortality salience increases the desire to retain assets in retirement, reducing the preferred spending rates in retirement.  Understanding the role of mortality salience on decisions about asset decumulation in retirement can be beneficial to academic researchers and financial planners.

Author(s): Yi Liu, Russell N. James, III

Presenters
avatar for Yi (Bessie) Liu

Yi (Bessie) Liu

Ph.D. Candidate, Texas Tech University
Yi (Bessie) Liu is a Ph.D. student in the Department of Personal Financial Planning at Texas Tech University. She aims to serve diversified groups especially for first and second generation immigrants as well as Asian-Americans to assist them in achieving a better financial futur... Read More →


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2

4:30pm

P109 - Time Will Tell: Determinants and Significance of Financial Planning Horizon Changes
Recent studies have demonstrated that individuals' financial planning horizons significantly impact their economic decisions, such as saving propensities, credit card usage behaviors, investment choices, retirement decisions as well as estate planning engagements. Motivated by the profound implications and impacts of people's financial planning horizon variations, this paper investigates the determinants of individuals' financial planning horizons both cross-sectionally and longitudinally. Using the Health and Retirement Study data, the analyses in this paper reveal that American adults' financial planning horizons are strongly determined by their self-perceived life expectancy. Over time, the changes in self-perceived life expectancy, marital and retirement status, health conditions and wealth level will cause individuals shift their financial planning horizons. The insight gained in this study helps financial planners to better understand the factors driving the changes of their clients' financial planning horizons and how to encourage them to expand their planning horizon.

Author(s): Zhikun Liu, Russell James, III

Presenters
avatar for Zhikun Liu

Zhikun Liu

Research Director, Empower Retirement™


Tuesday October 2, 2018 4:30pm - 6:00pm
Michigan 2