Lean Advice for New Investors

14 Pages Posted: 19 Dec 2023

See all articles by Jarrod Wilcox

Jarrod Wilcox

Wilcox Investment, Inc.

Zvi Bodie

Boston University

Dan di Bartolomeo

Northfield Information Services

Multiple version iconThere are 2 versions of this paper

Date Written: November 1, 2023


As defined benefit pensions have been replaced by investor-directed defined contribution plans, implementing sound investment policies for retail investors of modest means has become a problem of increasing urgency. This group comprises most of the investor population across all countries. In the United States, it is characterized by inadequate saving, failure to take advantage of the higher payout for delayed Social Security benefits, extensive credit card debt, and pursuit of naive investment policies. Sophisticated financial advice is available to large investors, but the associated high costs prohibit access by many others. This paper provides an affordable prescriptive blueprint for them, in particular for new investors. Although U.S.-centric, our framework can be put to practical use in any country. We envision implementation as a low-cost tier service using simple technology that permits mass customization with limited in-person contact.

Keywords: asset allocation, retail investor, robo-advisor

JEL Classification: C58, G11, G51

Suggested Citation

Wilcox, Jarrod and Bodie, Zvi and di Bartolomeo, Dan, Lean Advice for New Investors (November 1, 2023). Journal of Investment Consulting, Vol. Vol 22, No. 1, pp. 19-30, 2023, Available at SSRN: https://ssrn.com/abstract=4668081

Jarrod Wilcox

Wilcox Investment, Inc. ( email )

950 Centre Street
Newton, MA 02459
United States
617-332-4666 (Phone)

Zvi Bodie

Boston University ( email )

12 Salisbury Road
Brookline, MA
United States
617 306 5556 (Phone)

HOME PAGE: http://www.zvibodie.com

Dan Di Bartolomeo (Contact Author)

Northfield Information Services ( email )

77 N Washington St # 902
Boston, MA 02114
United States

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