Who Among the Elderly Owns Stocks? The Role of Cognitive Ability and Bequest Motive

TitleWho Among the Elderly Owns Stocks? The Role of Cognitive Ability and Bequest Motive
Publication TypeJournal Article
Year of Publication2012
AuthorsKim, EJin, Hanna, SD, Chatterjee, S, Lindamood, S
JournalJournal of Family and Economic Issues
Volume33
Issue3
Pagination338-352
KeywordsHealth Conditions and Status, Healthcare, Net Worth and Assets, Retirement Planning and Satisfaction
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. PUBLICATION ABSTRACT
Notes

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
URLhttp://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
DOI10.1007/s10834-012-9295-2
Endnote Keywords

Psychology/investment decisions/investment decisions/retirement planning/cognitive ability/stock market/assets
Endnote ID

69510
Citation Key7723