Abstract
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.
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.
- Content Type Journal Article
- Category Original Paper
- Pages 1-15
- DOI 10.1007/s10834-012-9295-2
- Authors
- Eun Jin Kim, CNK Consulting Inc, 3rd floor Dana Building, 795-24 BangbaeBon-Dong, Seocho-Gu, Seoul, Korea
- Sherman D. Hanna, Consumer Sciences Department, Ohio State University, Columbus, OH 43210, USA
- Swarn Chatterjee, Department of Housing & Consumer Economics, University of Georgia, 205 Dawson Hall, Athens, GA 30602, USA
- Suzanne Lindamood, 2161 Arlington Avenue, Columbus, OH 43221, USA
- Journal Journal of Family and Economic Issues
- Online ISSN 1573-3475
- Print ISSN 1058-0476