Other factors for the men were having too low an income, having three or more kids and having a wife who thinks he is spendy. Other factors for wives were having a lack of financial communication with husband and having a spendy husband.
With financial conflict, one of the leading predictors of relationship satisfaction and divorce, some couples may benefit from explorations of what “spendy” means to each person in the relationship and a discussion about the perception of each other’s saving and spending habits. Financial planners could benefit from learning better to facilitate those conversations.
The last study I will highlight was presented by Jacob Williams, a Texas Tech Ph.D. candidate. He titled his study after his curiosity, “Does the Level of Annuitization Affect a Retiree’s Financial Satisfaction?”
Prior research indicates a positive relationship between annuitization and satisfaction. This study hypothesized that the level of annuitization positively affected retiree’s financial satisfaction. However, the authors of this study controlled for variables not addressed in prior literature such as the “voluntariness” of the retirement decision.
The results indicated financial planners are not likely to increase satisfaction by increasing the level of annuitization. Rather, planners are more likely to increase satisfaction by following the established process of making a more complete assessment of client’s financial picture and recommending what is best given that specific client’s needs.
The other studies presented were “The Determinants of Nest Egg Sustainability,” Presenting Author: Jack DeJong, Nova Southeastern University; “The Value of Communication in the Client/Adviser Relationship,” Presenting Authors: Christopher Browning, Texas Tech; and Jimmy Cheng, Winthrop University; “The Associations of Cognitive Abilities and Wealth: A Comparison of Elderly Married and Non-Married Households,” Presenting Author: Fred Fernatt; “Understanding Investor Risk Tolerance,” Presenting Author: Robert Moreschi, Virginia Military Institute; and “Financial Satisfaction: What People Know, Feel and Do from a Financial Perspective,” Presenting Author: Cliff Robb, University of Wisconsin.
The profession’s body of knowledge continues to grow. In the meantime, look for some of these to be published in the Journal of Financial Planning (free to FPA members) in the coming months. Some presentation slides can be found through the FPA Annual Conference website. Click on the “academic research sessions” in the conference schedule then click on “Session PPT”.
Dan Moisand, CFP, has been featured as one of America’s top independent financial advisors by Financial Planning, Financial Advisor, Investment Advisor, Investment News, Journal of Financial Planning, Accounting Today, Research, Wealth Manager, and Worth magazines. He practices in Melbourne, Fla. You can reach him at www.moisandfitzgerald.com.