Financial advice: Who pays

Michael S. Finke, Sandra J. Huston, Danielle D. Winchester

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

Using a cost-benefit framework for financial planning services and proprietary data collected in the summer of 2008, the client characteristics that are associated with the likelihood of paying for professional financial advice, as well as the type of financial services purchased, are identified. Results indicate that respondents who pay for financial advice are more likely to be female, relatively older, wealthier, and college educated but do not have a high level of self-reported knowledge about financial issues. Of the respondents who purchase financial advice, those who are comprehensively-managed are more likely to be under 65, wealthy, and have high self-reported knowledge about financial issues. This study reveals important differences between the decision to pay for financial advice and the type of financial services purchased.

Original languageEnglish
Pages (from-to)18-26
Number of pages9
JournalJournal of Financial Counseling and Planning
Volume22
Issue number1
StatePublished - 2011

Keywords

  • Financial advice
  • Financial services
  • Professional advice

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    Finke, M. S., Huston, S. J., & Winchester, D. D. (2011). Financial advice: Who pays. Journal of Financial Counseling and Planning, 22(1), 18-26.