Financial Advice: Who Pays

9 Pages Posted: 16 May 2012

See all articles by Michael S. Finke

Michael S. Finke

The American College

Sandra J. Huston

Texas Tech University

Danielle D. Winchester

North Carolina Agricultural and Technical State University

Date Written: 2011

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 finan- cial advice and the type of financial services purchased.

Keywords: financial advice, financial services, professional advice

Suggested Citation

Finke, Michael S. and Huston, Sandra J. and Winchester, Danielle D., Financial Advice: Who Pays (2011). Journal of Financial Counseling and Planning, Vol. 22, No. 1, p. 18, 2011, Available at SSRN: https://ssrn.com/abstract=2061296

Michael S. Finke (Contact Author)

The American College ( email )

Bryn Mawr, PA 19010
United States

Sandra J. Huston

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Danielle D. Winchester

North Carolina Agricultural and Technical State University ( email )

1601 E. Market St.
Greensboro, NC 27411
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
334
Abstract Views
1,436
rank
97,694
PlumX Metrics