Frequent shifting of household portfolio composition may erode wealth due to poor market timing and transaction costs. If household preferences are stable, the optimal wealth maximizing strategy is periodically rebalancing to maintain a relatively constant ratio of investment assets to wealth...

An investor who either buys an income annuity at retirement, or who has a higher level of guaranteed income through a pension or Social Security, should hold a different asset allocation than an investor who holds little guaranteed income. We use current annuity and bond prices to estimate...

The literature on risk tolerance overwhelmingly justifies the use of questionnaires based on validity and reliability or psychometric testing, but there has been little research examining the relation between questions and actual investor portfolio behavior. This study examines risk tolerance...

An inability to accurately detect quality prior to or even after purchase distinguishes professional advice from other consumer goods or services. A consumer that is unable to assess the difference between an advisor's recommendation and the ideal recommendation is vulnerable to the self-serving...

Changes in average FinaMetrica monthly risk tolerance scores were evaluated during the January 2007 to May 2012 time period that spanned the global financial crisis. The research objective was to test whether fluctuations in equity returns influence average risk tolerance scores over time. A...

There is surprisingly little agreement among academics about the existence of time diversification, which we define as the anomaly where equities become less risky over longer investment periods. This study provides the most thorough analysis of time diversification conducted, using 113 years of...

This paper demonstrates that the safety of a given withdrawal strategy is significantly affected by the initial bond yield and cyclically adjusted price-to-earnings (CAPE) value at retirement, and that the relative impact varies based on the portfolio equity allocation