Work

Asset allocation decisions in retirement accounts

Year: 2000

Type: article

Abstract: An examination of survey responses about Individual Retirement Account (IRA) holdings reveals that individuals often take all-or-nothing approaches in their decisions to diversify across the asset categories of cash, bonds, and equity. Two thirds of survey respondents put their entire IRA holdings into a single asset category. A surprisingly large proportion of funds is held in cash, while only a minimal amount is invested in bonds. These findings also contrast with those of Bodie and Crane’s (1997) examination of TIAA-CREF participants, which is heavily weighted with individuals holding fixed income annuities. Our results suggest that there is a compelling need for risk education for investors. © 2000 Elsevier Science Inc. All rights reserved.

Source: Financial Services Review

DOI: 10.1016/s1057-0810(00)00057-3

Authors: Doug Waggle, Basil Englis

Institution: Berry College

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W2048329324

FWCI: 1.565

Cites: 20

Cited by: 23

Related to: 10