TY - JOUR T1 - Cognitive Functioning: An Underlying Mechanism of Age and Gender Differences in Self-Assessed Risk Tolerance among an Aging Population JF - Sustainability Y1 - 2021 A1 - Sharma, Muna A1 - Chatterjee, Swarn KW - Age KW - Cognition KW - gender KW - mediation KW - Risk tolerance AB - Attitude toward risk plays a vital role in an individual’s financial decision-making and well-being. Past studies have found significant association of age and gender with risk tolerance. However, studies on the factors affecting the underlying mechanism are scant. The purpose of this research is to test whether cognitive functioning mediates the association between age, gender, and self-assessed risk tolerance. Using the 2014 wave of the Health and Retirement Study, path analysis was conducted to test the hypothesized model. Results revealed a negative direct association between age and risk tolerance. Moreover, the study also found a lower level of risk tolerance in women. A bootstrap-based confidence interval revealed that a significant portion of the relationship between age and risk tolerance was mediated by cognition. However, the gender difference in risk tolerance was not explained by cognition. Financial planning practitioners and policymakers should understand the contribution of cognitive functioning toward the difference in risk tolerance in older populations and implement strategies to reinforce cognitive functioning to mitigate the adversity of a low level of risk tolerance. VL - 13 IS - 4 ER - TY - JOUR T1 - Financial hardship and depression experienced by pre-retirees during the COVID-19 pandemic: the mitigating role of stimulus payments JF - Applied Economics Letters Y1 - 2021 A1 - Liu, Yingyi A1 - Zhang, Yu A1 - Chatterjee, Swarn KW - COVID-19 KW - depression KW - Financial hardship KW - pre-retirees KW - stimulus checks AB - This study examines the association between financial hardship and depression among pre-retirees (ages 50 to 65) using the Health and Retirement Study (HRS) and its 2020 COVID-19 supplement. We find a negative association between the amount of stimulus received and financial hardship experienced by respondents during the pandemic. Additionally, the results indicate that African American households were less likely to increase spending, Hispanic households were more likely to increase savings, and households with lower educational attainment were more likely to pay down debt using their stimulus money. Financial wealth was negatively associated with the perception of feeling depressed. Overall, the findings from this study underscore the important role that the stimulus checks and other financial resources played in buffering the economic shock experienced by American households during the COVID-19 pandemic. SN - 1350-4851 ER - TY - JOUR T1 - Older Adults’ Life Satisfaction: The Roles of Seeking Financial Advice and Personality Traits JF - Journal of Financial Therapy Y1 - 2021 A1 - Chatterjee, Swarn A1 - Fan, Lu KW - Cognitive Ability KW - Financial help seeking KW - financial therapy KW - Health Status KW - Life Satisfaction KW - Personality AB - This paper uses 1,237 respondents from the Health and Retirement Study dataset to examine the relationships among personality, financial advice-seeking, and life satisfaction of U.S. older adults. The results indicate that extraversion is negatively associated with seeking professional financial advice, while conscientiousness and openness were associated positively with seeking professional financial advice. Individuals with a neurotic personality trait were positively associated with seeking financial advice from families and friends. Additionally, seeking professional financial advice, and being extraverted and conscientious, were positively associated with life satisfaction among older adults. The implications for financial therapists and counselors include suggestions for implementation of cross-functional collaborative counseling strategies when working with older clients who may be experiencing physical and mental health-related problems. Implications of the findings for policymakers are also discussed. VL - 12 IS - 1 ER - TY - JOUR T1 - Bequest expectations among the U.S. older adults: The roles of generational differences and personality traits JF - FINANCIAL PLANNING REVIEW Y1 - 2019 A1 - Fan, Lu A1 - Chatterjee, Swarn KW - bequest motive KW - generational difference KW - personality trait AB - Abstract This study used the 2012 and 2014 panels of the Health and Retirement Study, a nationally representative dataset, to examine the associations between personality traits, generational cohorts, and bequest expectations among elderly households in the United States. The results indicated that neuroticism was associated with a lower subjective probability of leaving a bequest, and extroversion was associated with a higher subjective probability of leaving a bequest. Income, assets, and educational attainment were also positively associated with self-reported bequest expectations. Generational differences were observed in the subjective probabilities of leaving bequests. The results of this study help in understanding the psychosocial factors associated with leaving bequests in an aging society, and provide implications for financial planners, practitioners, and policy makers. UR - https://onlinelibrary.wiley.com/doi/abs/10.1002/cfp2.1057 ER - TY - JOUR T1 - Zeta Estimates of Wealth Volatility and Financial Planning Horizon JF - Ewha Journal of Social Sciences Y1 - 2014 A1 - Grable, John A1 - Chatterjee, Swarn KW - Methodology KW - Net Worth and Assets AB - The intention of this study was to document how closely households follow normative descriptions of financial behavior in relation to their financial planning horizon. Modern Portfolio Theory predicts that households, in general, exhibit risk aversion. Aversion to wealth volatility should correspondingly be highest among those households with the shortest planning horizons. This study estimated percentage changes in wealth and wealth volatility over time categorized by financial planning horizon using data from the 2002 through 2010 waves of Health and Retirement Study. Modigliani ratios were computed for the entire population and by planning horizon. Zeta estimates were made by calculating the difference between the Modigliani ratios for each planning horizon and the ratio for the short-term horizon. Contrary to the conceptualized relationship between planning horizon and financial wealth volatility, results from this study show that respondents with the shortest financial planning horizons experienced lower risk-adjusted returns and greater wealth volatility. The findings of this study underscore an unmet and perhaps unrealized need for professionally provided financial planning. PB - 30 VL - 30 IS - 2 U4 - household wealth/Financial planning/Zeta estimages/Modigliani Ratio/Sharpe Ratio/Wealth/methodology ER - TY - JOUR T1 - The impact of immigrant status and racial/ethnic group on differences in responses to a risk aversion measure JF - Journal of Financial Counseling and Planning Y1 - 2013 A1 - Fang, M. C. A1 - Sherman D. Hanna A1 - Chatterjee, Swarn KW - Demographics KW - Net Worth and Assets KW - Risk Taking AB - Factors related to differences in risk aversion were analyzed with a measure of risk aversion inferred from answers to a hypothetical income gamble question in the U.S. Health and Retirement Study. Cumulative logistic regressions, controlling for income, age, gender, health status, current job status, and home ownership, showed that Blacks were more risk averse than Whites, but Hispanics born in the United States were not different from Whites. U.S. born respondents in an other group, largely Asian, were also not different from Whites. Hispanics and those in the other group who were immigrants were more risk averse than Whites. Racial/ethnic differences found in other risk aversion studies may be partly due to differences in immigrant status. 2013 Association for Financial Counseling and Planning Education. All rights of reproduction in any form reserved. PB - 24 VL - 24 UR - http://www.scopus.com/inward/record.url?eid=2-s2.0-84892566141andpartnerID=40andmd5=4e12b8c031640244bc493910cb0f6d15 IS - 2 N1 - Export Date: 21 April 2014 Source: Scopus U4 - Investments/Immigrants/Racial/ethnic differences/Risk aversion/Risk tolerance ER - TY - JOUR T1 - The Motivation for Intergenerational Time and Financial Transfers JF - Family and Consumer Sciences Research Journal Y1 - 2012 A1 - Saeeun Choi A1 - Chatterjee, Swarn A1 - Kim, Haejeong KW - Adult children KW - Health Conditions and Status AB - This study investigated the motivation for intergenerational financial and time transfers between parents and adult children using data from the Health and Retirement Study. The results showed that emotional closeness between parents and adult children was significantly associated with both adult children to parent and parent to adult children transfers. In addition, parents and adult children who met frequently were more likely to help each other by making financial or time transfers. Also, financial transfers between parents and adult children were motivated by the donor's altruism to the disadvantaged adult children or parents. However, wealthier parents and adult children with full-time jobs were less likely to make time transfers. The results of this study help in understanding the motivation for various types of intergenerational transfers in an aging society. PUBLICATION ABSTRACT PB - 40 VL - 40 IS - 4 U4 - Motivation/Transfers/adult Children/parent/Families and family life/Aging/Altruism/intergenerational Transfers ER - TY - JOUR T1 - Who Among the Elderly Owns Stocks? The Role of Cognitive Ability and Bequest Motive JF - Journal of Family and Economic Issues Y1 - 2012 A1 - Eun Jin Kim A1 - Sherman D. Hanna A1 - Chatterjee, Swarn A1 - Lindamood, Suzanne KW - Health Conditions and Status KW - Healthcare KW - Net Worth and Assets KW - Retirement Planning and Satisfaction AB - Conventional advice is to reduce risky investments as one ages. Such a generalized focus on risk avoidance may be inappropriate for elderly with longer life spans and those with financial goals that extend beyond their lifetime. To better understand risky asset holdings among the elderly, we investigated the effect of cognitive ability and bequest motive on stock ownership and stock purchase. Using the 2004 wave of the Health and Retirement Study, we found that one-third of elderly households held stocks and 36 of those elderly stockowners had recently acquired stocks. The respondent's cognitive ability and bequest motive were strongly related to stock ownership. Among those who owned stock, a bequest motive was positively related to a recent purchase of stocks. PUBLICATION ABSTRACT PB - 33 VL - 33 UR - http://search.proquest.com.proxy.lib.umich.edu/docview/1030719840?accountid=14667http://mgetit.lib.umich.edu/?ctx_ver=Z39.88-2004andctx_enc=info:ofi/enc:UTF-8andrfr_id=info:sid/ProQ 3Aabiglobalandrft_val_fmt=info:ofi/fmt:kev:mtx:journalandrft.genre=articl IS - 3 N1 - Copyright - Springer Science Business Media, LLC 2012 Language of summary - English Pages - 338-352 ProQuest ID - 1030719840 Last updated - 2012-08-02 Place of publication - New York Corporate institution author - Kim, Eun Jin; Hanna, Sherman D; Chatterjee, Swarn; Lindamood, Suzanne DOI - 2726553591; 70920932; 53465; JFEI; SPVLJFEI108343339295 U4 - Psychology/investment decisions/investment decisions/retirement planning/cognitive ability/stock market/assets ER -