FINANCIAL PLANNING REVIEW最新文献

This study investigates the relationships between individual preferences, personality traits, abilities, and multiple indicators of financial well-being (FWB). Employing survey data from the Understanding America Study (UAS), we analyze FWB across its different dimensions, including a composite scale, single-item perceptions of FWB, objective outcomes indicative of FWB, and positive financial behaviors. Logistic and OLS regression results show that time preferences, financial self-efficacy, and financial literacy are significantly related to many different FWB indicators. Analysis of interaction effects reveals that financial literacy has an important amplifying role in relation to the individual discount rate, financial self-efficacy, and income. This study provides insights into how financial planning practitioners can incorporate their clients' time preferences, confidence, and financial literacy into individualized strategies to help them reach their financial goals.

The mean–variance optimization (MVO) model of Harry M. Markowitz is the foundation of quantitative portfolio construction and asset allocation. While Markowitz originally developed MVO for forming portfolios of tradable assets in isolation, it has been adapted for creating portfolios of tradable assets in the presence of non-tradable assets and liabilities. In a series of publications, Paul D. Kaplan and Thomas M. Idzorek further extend MVO to the household economic balance sheet. The extended MVO model is the net worth optimization (NWO) model. In NWO, human capital is modeled as an asset mix held long, and, as in surplus optimization, liabilities are modeled as an asset mix held short. NWO operates in terms of net worth returns rather than in the returns on the financial assets. Kaplan and Idzorek maximize an approximation for expected utility developed by Haim Levy and Harry M. Markowitz. In this article, I show how to achieve this by combining existing quadratic programming techniques with nonlinear equation solution techniques in a novel way. I also discuss and demonstrate how NWO differs from the discretionary wealth approach (DWA) introduced by Jarrod Wilcox.

Financial advice is fragmented and not living up to its potential. Despite 75+ years of coexistence, the lifecycle models stemming from Ramsey (1926), Fisher (1930), Modigliani and Brumberg (1954), Friedman (1957), Modigliani (1966), Samuelson (1969), Merton (1969, 1971, 1992), as well as others, and the single-period optimization models of de Finetti (1940 [2006]), Roy (1952), Tobin (1958), and Markowitz (1952, 1959, 1987) have largely remained separate; let alone, have they been brought together in a meaningful way. This lack of connection is indicative of the current paradigm of disconnected piecemeal approaches that dominate financial planning and investing. Building on the insights of Samuelson (1969) and Fama (1970) and methods developed by Idzorek and Kaplan (2024), we link lifecycle models and mean–variance optimization models into a combined, integrated model. This model simultaneously provides unified financial planning associated with lifecycle finance with integrated portfolio recommendations from single-period optimization models. We argue that the industry should move toward an interconnected, hybrid lifecycle net worth optimization model.

This study explores the factors associated with financial risk tolerance using data from a panel of 1334 investors collected between February and May 2023 across Australia, the United Kingdom, and the United States. Participants completed surveys at two different time points. The surveys included questions focused on measuring financial risk tolerance, subjective financial knowledge, objective financial knowledge, investment experience, cognitive reflection, and various demographic variables. Findings based on hierarchical partitioning models support the Domain-Specificity Principle, which highlights how domain-specific factors like subjective financial knowledge and investment experience are more predictive of financial risk tolerance than generalized characteristics such as education level or cognitive ability. Additionally, this study demonstrates the mediating effect of investment experience on the relationship between subjective financial knowledge and financial risk tolerance. In total, results underscore the importance of using domain-specific investor characteristics rather than non-specific attributes when studying financial decision-making and the role of risk tolerance in describing investor outcomes.

For many teenagers, a first job marks an important milestone that may improve later life outcomes. However, limited research has considered the effect of youth employment on personal finances. This study offers evidence on the relationship between working in high school and financial access in young adulthood using data from the National Longitudinal Survey of Youth 1997. Employing an empirical model that addresses selection into youth employment, study findings reveal that young adults who worked in high school are more likely to access a range of financial products and services for transacting, saving, and borrowing by age 25. The extent to which youth employment facilitates financial access varies by demographic characteristics, including race and ethnicity, sex, and parent educational attainment. Young adults who worked during high school did not exhibit significant improvements in financial management behavior despite gains in financial access relative to their non-working peers. These findings are consistent with policies and programs that support youth who engage in work early in life.

In a developing country such as India, gamification in finance remains nascent. This study addresses a critical research gap by investigating how gamification moderates the effects of financial attitude, financial self-efficacy, and financial planning on financial behavior. It also examines whether gamified features in financial applications enhance users' money management capabilities. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4.0 was employed to test a behavioral model comprising six constructs: financial attitude (FA), financial self-efficacy (FSE), financial planning (FP), gamification (GF), and financial behavior (FB). Psychometric evaluation confirmed the validity and reliability of the measurement model. Data were collected from 557 users of financial apps in India. Results reveal that gamification significantly moderates the relationships between financial planning and financial behavior, as well as financial self-efficacy and behavior, but not between financial attitude and behavior. All constructs demonstrated strong discriminant validity. Gamification emerged as a distinct and effective behavioral reinforcement mechanism. Experienced app users preferred features such as real-time feedback, progress tracking, and social sharing. Banks and fintech firms can integrate gamified elements to boost user engagement, support goal-setting, and foster better financial habits. This study extends behavioral finance research by integrating gamification with psychological constructs of financial behavior. Policymakers and educators may incorporate gamification into financial literacy programs to enhance user participation, provided ethical safeguards are in place to protect against manipulation. This is among the first empirical studies in the Indian context to demonstrate the moderating role of gamification in personal finance. It offers a validated model for developing behaviorally intelligent financial tools aligned with users' psychological traits and digital habits.

This study provides the first formal psychometric validation of the Retirement Income Literacy Scale (RILS) and examines the relationship between professional designations and specialized knowledge among financial advisors. Using a two-study design, we first validate the 38-item RILS with 3745 American consumers aged 50 to 75, demonstrating strong internal consistency and confirming a unidimensional factor structure through exploratory and confirmatory factor analyses. The validated scale exhibits good model fit and adequate construct validity. In the second study, we assess retirement income literacy among 906 financial professionals using the validated RILS. Results reveal that financial advisors with professional designations score significantly higher than those without designations, representing a practically meaningful 9.37-point difference. LASSO regression analysis identifies the Certified Financial Planner (CFP) credential as the strongest predictor among professional designations. A curvilinear relationship emerges between the number of designations held and RILS scores, indicating diminishing returns to multiple credentials specifically for retirement income literacy knowledge. These findings provide empirical support for both Signaling Theory and Human Capital Theory in the financial planning context, demonstrating that professional designations function as meaningful indicators of specialized knowledge. The study contributes a validated assessment tool for retirement income literacy research and offers evidence-based insights for professional development in financial planning, with implications for advisor credentialing, consumer choice, and industry standards. FPR classification codes:I.5. I.7.

This study investigates the impact of narrative R&D disclosure characteristics—readability, sentiment, and quantity—on stock return volatility. A comprehensive longitudinal regression model that includes these three characteristics, along with their interactions with R&D investment intensity, outperforms the other models. The readability of narrative R&D disclosures significantly affects volatility, with more readable disclosures associated with reduced fluctuations. Additionally, readability moderates the effect of R&D investment intensity on volatility. No direct effect of disclosure sentiment on stock return volatility is observed, but disclosure sentiment influences the relation between R&D investment intensity and stock return volatility. Finally, there is a strong positive correlation between the quantity of R&D disclosures and stock return volatility, suggesting that excessive R&D information tends to increase stock return fluctuations. The study provides practical implications for both investors and firms. It suggests that investors may consider R&D disclosure characteristics to better assess the risk of stock return fluctuations when selecting shares of R&D-intensive firms and offers guidance for firms on delivering clearer and more balanced R&D disclosures to help reduce market volatility.

The millennial generation in Indonesia may struggle with retirement if they do not begin preparing their retirement funds early. This study aims to explore the impact of financial literacy, retirement goal clarity, and financial risk tolerance on the retirement saving behavior of millennials. Data was collected through an online questionnaire using purposive sampling targeting employed Indonesian millennials, resulting in 212 respondents. Hypothesis testing was conducted using partial least square-structural equation modeling with the Smart-PLS 4.0 software. The results of this study reveal that subjective financial literacy significantly influences retirement saving behavior, both directly and through the partial mediation of retirement goal clarity. In contrast, objective financial literacy and financial risk tolerance do not exhibit a significant influence on retirement saving behavior. The findings underscore the importance of boosting confidence in financial knowledge and the clarity of retirement goals to encourage better saving habits among millennials. Setting clear retirement goals is crucial for driving saving behavior, even when potential risks are factored in. Millennials are approaching retirement age, making it essential to assess their readiness and preparedness for retirement.

The following articles published in Financial Planning Review were incorrectly labeled as “Invited Review.” The correct article category should be “Original Article.”

Heckman S. Koochel E. Lutter S. Collins J.M. 2025. “Introducing the Financial Planning Longitudinal Study (FPLS).” Financial Planning Review 8: e70003 https://doi.org/10.1002/cfp2.70003.

Bennetts C.R. Ludwig E.T. 2025. “Echoes of Bias: An Analysis of ChatGPT in Financial Planner–Client Dialogs.” Financial Planning Review 8: e70006 https://doi.org/10.1002/cfp2.70006.

Beierlein J.J. McCoy L. 2025 “Creating and Testing a Personal Finance Motivation Scale Based on Self-Determination Theory.” Financial Planning Review 8: e70009 https://doi.org/10.1002/cfp2.70009.

We apologize for this error.