TY - JOUR
T1 - The Impact of Financial Advice Certification on Investment Choices
AU - Guillemette, Michael
AU - Jurgenson, Jesse
N1 - Publisher Copyright:
© 2017 Association for Financial Counseling and Planning Education®.
PY - 2017/6/1
Y1 - 2017/6/1
N2 - The purpose of this study is to investigate whether a professional designation affects consumer choice behavior within the area of investment decision making. Forty-six participants were endowed with real money and received hypothetical investment advice from a certified financial planner (CFP) Professional and a stockbroker. Among low-income households, advice from a CFP altered investor choice behavior within hypothetical education and retirement savings accounts. When participants made investment decisions using education funds and received advice from a CFP, the mean expected value of their investment choices was $43,913, compared to $25,870 given advice from a stockbroker. When investment decisions were made using retirement funds, the average expected value given advice from a CFP and a stockbroker was $53,424 and $33,207, respectively. If an investor was risk-neutral or risk-seeking, investment choices were improved when advice was rendered by a CFP relative to a stockbroker.
AB - The purpose of this study is to investigate whether a professional designation affects consumer choice behavior within the area of investment decision making. Forty-six participants were endowed with real money and received hypothetical investment advice from a certified financial planner (CFP) Professional and a stockbroker. Among low-income households, advice from a CFP altered investor choice behavior within hypothetical education and retirement savings accounts. When participants made investment decisions using education funds and received advice from a CFP, the mean expected value of their investment choices was $43,913, compared to $25,870 given advice from a stockbroker. When investment decisions were made using retirement funds, the average expected value given advice from a CFP and a stockbroker was $53,424 and $33,207, respectively. If an investor was risk-neutral or risk-seeking, investment choices were improved when advice was rendered by a CFP relative to a stockbroker.
KW - certification
KW - certified financial planner
KW - fiduciary
KW - financial advice
KW - investments
KW - stockbroker
UR - http://www.scopus.com/inward/record.url?scp=85075650630&partnerID=8YFLogxK
U2 - 10.1891/1052-3073.28.1.129
DO - 10.1891/1052-3073.28.1.129
M3 - Article
VL - 28
SP - 129
EP - 139
JO - Journal of Financial Counseling and Planning
JF - Journal of Financial Counseling and Planning
IS - 1
ER -