The brighter side of financial risk: Financial risk tolerance and wealth

Michael S. Finke; Sandra J. Huston

doi:10.1023/A:1025443204681

The brighter side of financial risk: Financial risk tolerance and wealth

Michael S. Finke, Sandra J. Huston

Personal Financial Planning

Research output: Contribution to journal › Article

51 Scopus citations

Abstract

Investors who accept a greater degree of financial risk expect to benefit from higher returns and greater wealth over time. This study explores the relationship between net worth and net financial assets and risk tolerance using data from the 1998 Survey of Consumer Finances. Willingness to take financial risk is associated with a significantly higher net worth for the whole sample, and for samples within age groups. Risk tolerance among those over 65 is among the strongest predictors of a higher net worth.

Original language	English
Pages (from-to)	233-256
Number of pages	24
Journal	Journal of Family and Economic Issues
Volume	24
Issue number	3
DOIs	https://doi.org/10.1023/A:1025443204681
State	Published - Sep 2003

Keywords

Risk tolerance
Wealth accumulation

Access to Document

10.1023/A:1025443204681

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Finke, M. S., & Huston, S. J. (2003). The brighter side of financial risk: Financial risk tolerance and wealth. Journal of Family and Economic Issues, 24(3), 233-256. https://doi.org/10.1023/A:1025443204681

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