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|Accounting and Finance Journal Articles
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|Savings goals and wealth allocation in household financial portfolios
|Changwony, Frederick Kibon
Tabner, Isaac T
|Changwony FK, Campbell K & Tabner IT (2021) Savings goals and wealth allocation in household financial portfolios. Journal of Banking and Finance, 124, Art. No.: 106028. https://doi.org/10.1016/j.jbankfin.2020.106028
|We investigate how savings goals relate to wealth allocation and how this relationship is moderated by financial advice and numerical ability. Using panel data from a large household survey we find that as the number and the time horizon of savings goals increases, portfolios shift from safe assets to both fairly safe assets and risky assets. We also find that households with access to multiple sources of financial advice and independent financial advice hold more fairly safe and risky assets and that independent financial advice enhances the influence of savings goals on wealth allocation to fairly safe and risky assets. Overall we find that the possession of savings goals is associated with long term saving activity, and this is particularly evident for those with low levels of numerical ability. By enabling the formation of savings goals, the financial planning process can facilitate long-term investment in risky assets.
|This item has been embargoed for a period. During the embargo please use the Request a Copy feature at the foot of the Repository record to request a copy directly from the author. You can only request a copy if you wish to use this work for your own research or private study. Accepted refereed manuscript of: Changwony FK, Campbell K & Tabner IT (2021) Savings goals and wealth allocation in household financial portfolios. Journal of Banking and Finance, 124, Art. No.: 106028. https://doi.org/10.1016/j.jbankfin.2020.106028 © 2020, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/
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