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Welcome to the Academy of Financial Service’s 2019 Annual Meeting being held in Minneapolis, Minnesota in conjunction with FPA’s Annual Conference 2019. This is the full agenda for AFS. For details on FPA items, visit their Full Schedule. Please report any errors to support@academyfinancial.org.

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Monday, October 14
 

6:59am CDT

Welcome from the AFS President!
Welcome from the AFS President!

It is my pleasure to welcome you to the 2019 Academy of Financial Services Annual Meeting, the 34th anniversary of the AFS. We gather at this annual meeting and conference each year due to our common interest in the teaching and practice of financial planning and financial services, as described in our mission statement:
  • To encourage basic and applied research in the area of personal financial planning and financial services
  • To encourage the development of the curricula in the financial services field at the university level
  • To encourage interaction between financial services professionals and academicians
This year, continuing the effort begun two years ago in Nashville, the AFS and the Financial Planning Association (FPA) have worked diligently to integrate our respective conferences into a single, cohesive event. The second day of the AFS conference (Wednesday, October 16) is the first day of the FPA® conference. AFS and FPA registrants can attend both AFS and FPA sessions on that day. You will find many AFS and FPA® members who have taken advantage of a significant discount to register and attend the complete AFS and FPA® programs.

On AFS day one, we have a full slate of breakout sessions, beginning at 9 am. We are excited to have as our luncheon speaker Dr. Cora Pettipas Senior Manager, Global Financial Planning HSBC London. Tuesday’s program ends with a reception and poster session from 4:30 to 6:00 pm. On Wednesday morning, the second day of the AFS conference begins with the joint opening general session of the FPA Conference, entitled “Mentoring and Role Models: A View From the Bench.” AFS breakouts start at 10:45 that morning and conclude at 5:45 that afternoon.

A conference does not just happen - it takes a great amount of planning and effort. I would like to take this opportunity to thank to Dr. Inga Timmerman, Executive VP-Program, for her efforts in constructing a very impressive agenda. Dr. Janine Sam, the AFS incoming President, was a tremendous asset in planning and executing the conference. Thanks also to Dr. Ginger Phillips, Jennifer Bijaczyk, and Kindra Bess of Arden Solutions. Their support has been invaluable both for advance planning and “boots on the ground” here in Minneapolis. In addition, Shawn Brayman played a critical role in bringing in our guest speakers and arranging sessions that bring in practitioners and researchers together. We extend our thanks to Dr. Tom Potts, AFS Board of Directors, Dr. David Nanigian, VP-Communications, Dr. Chris Browning, VP-Marketing, and Dr. Tom Langdon, VP-Finance, were helpful along the way. Also thanks to Dr. Stuart Michelson, Editor of Financial Services Review, for his dedication to the journal.

Best wishes to all AFS attendees for an enjoyable and informative stay in Minneapolis.

Swarn Chatterjee, Ph.D.
AFS President 2018-2019



Presenters
avatar for Swarn Chatterjee

Swarn Chatterjee

Professor, University of Georgia


Monday October 14, 2019 6:59am - 11:59pm CDT
N/A

4:00pm CDT

Board Meeting & Dinner
AFS Officers and Directors ONLY

Monday October 14, 2019 4:00pm - 9:00pm CDT
Hilton Minneapolis Room TEN01
 
Tuesday, October 15
 

7:00am CDT

Registration
Tuesday October 15, 2019 7:00am - 5:00pm CDT
202 B Foyer

7:30am CDT

Coffee Break
Tuesday October 15, 2019 7:30am - 9:00am CDT
201-202 Foyer

9:00am CDT

A1a An Empirical Analysis of the S&P 500 Sector Dogs Trading Strategy [CFP Investments]
The Dogs of the Dow strategy has long been popular among investors.  McQueen, Shields, and Thorley (1997) find that while the strategy beat the Dow with statistical significance the results were not economically significant.  However, Filbeck, Holzhauer, and Zhao (2017) examine a variation of the Dogs of the Dow using Fortune’s Most Admired Companies and find it beats the S&P 500 on a risk-adjusted basis with both statistical and economic significance.  We test another variation that applies the Dogs of the Dow strategy to the S&P 500, selecting the five highest dividend yield stocks from each S&P 500 sector.  We compare returns of this Sector Dogs strategy to those of the Dogs of the Dow and the S&P.  We find that this strategy produces significantly higher raw returns.  The Sector Dogs also significantly outperforms the S&P in terms of the Treynor Ratio and Jensen’s Alpha.

Author(s): Brett Cotten, Autumn Wilson, Alan Tidwell

Presenters
BC

Brett Cotten

Associate Professor, Columbus State University


Tuesday October 15, 2019 9:00am - 9:50am CDT
201 A

9:00am CDT

A1b The Historical Record on Active vs. Passive Mutual Fund Performance [CFP Investments]
This study examines the risk-adjusted performance of actively managed mutual funds vs. passively managed mutual funds between 1991 and 2018 and finds that the statistical significance of the difference in performance between the two types of funds disappears when the passively managed funds are compared to competitively priced actively managed funds. The practical implication of this study is that, setting tax considerations aside, as long as investors are cost conscious in their fund selection process, investing in passively managed funds does not meaningfully improve investor outcomes.

Author(s): David Nanigian

Presenters
avatar for David Nanigian, Ph.D., CFP(R)

David Nanigian, Ph.D., CFP(R)

Associate Professor of Finance, California State University, Fullerton
- ETFs- Active vs. Passive Investing- Opportunities for firms to invest in the future of the Mihaylo College's CFP Board-Registered Personal Financial Planning Program


Tuesday October 15, 2019 9:00am - 9:50am CDT
201 A

9:00am CDT

A2a Can student debt lead to bankruptcy?
This paper analyzes the effect of student loan debt on personal bankruptcy. While nearly impossible to discharge education debt in bankruptcy, student loans have mandatory repayments that may constrain some borrowers. The distress faced by some may reach the point where student loan borrowers seek protection for those debts that can be addressed through bankruptcy. Results suggest that student loan debt may supplement the existing credit card debt and adverse event explanations of bankruptcy. We present evidence from a nationally representative panel survey (NLSY79) that education debt is positively related to filing for bankruptcy among those with active unpaid loans. Student loan borrowers with ‘some college’ are 64 percent more likely to file bankruptcy. Associate degree holders and those with a bachelor degree or higher education are 68 percent and 43 percent more likely to seek bankruptcy protection, respectively. Separately, we estimate that the likelihood of bankruptcy increases 6.8 percent for each $10,000 of unpaid loans. 

Author(s): Thomas O'Malley, Brian Payne

Presenters
TO

Thomas O'Malley

Instructor, University of Colorado Colorado Springs


Tuesday October 15, 2019 9:00am - 9:50am CDT
201 B

9:00am CDT

A2b The Impact of Student Loans on Homeownership
With student loan debt topping $1.53 trillion by the second quarter of 2018, understanding the impact of that debt on borrowers is of critical importance (Board of Governors of the Federal Reserve System, 2018).   Many student loan borrowers report that student loan debt is preventing them from purchasing a home (The National Association of Realtors Research Department and American Student Assistance, 2017).  Studies have shown that there is a negative relationship between student loans and homeownership  (Mezza, Ringo, Sherlund, & Sommer, 2016).  Despite the importance of housing in the U.S. economy and the concerning relationship between student loan debt and homeownership, very little research has been done in this area.  This study seeks to expand the research by examining the impact of both federal and private student loans on homeownership.  Additionally, mortgage debt burden as it relates to federal and private student loans is investigated.  

Author(s): Wendy Usrey, Stuart Heckman

Presenters
WU

Wendy Usrey

Instructor, Colorado State University and Kansas State University


Tuesday October 15, 2019 9:00am - 9:50am CDT
201 B

9:00am CDT

A3a Does Willingness to Take Risk Mediate the Role of a Financial Planner When Clients Make Portfolio Allocation Decisions?
This study was designed to obtain a better understanding of an investor’s portfolio choices by examining the mediation effect of the use of a financial planner on the willingness to take risks. The dataset used in this study was the 2016 wave of the Survey of Consumer Finances (SCF). To determine the association among the variables, a logistic regression and Ordinary Least Squares (OLS) regression models were developed. Study results indicated that those who are more willing to take risks tend to use the services of a financial planner and tend to hold a larger proportion of stock assets in their portfolios (as a percentage of overall financial assets). However, with regard to holding risky assets, findings suggest that the effect of willingness to take risks is reduced somewhat when an investor’s use of the services of a financial planner is accounted for.

Author(s): Danah Jeong

Presenters
DJ

Danah Jeong

Student, University of Georgia


Tuesday October 15, 2019 9:00am - 9:50am CDT
202 AB

9:00am CDT

A3b The Historical Performance of Equal-Weighted Indexes and ETF’s
Several recent papers report that investors would benefit from investing in equal-weighted portfolios instead of the traditional value-weighted portfolios. These papers employ theoretical models and simulated portfolios to support their recommendation. Since this switch would be a radical change from current practice for index investors, we re-examine this proposition by studying the historical performance of equal-weighted and value-weighted versions of five different S&P and Russell stock indexes over the last two decades. Adopting the individual investors’ perspective, we also examine the performance of exchange traded funds that track these indexes.

Author(s): S. Gowri Shankar, James M. Miller

Presenters
avatar for Gowri Shankar

Gowri Shankar

Faculty, University of Washington Bothell


Tuesday October 15, 2019 9:00am - 9:50am CDT
202 AB

10:00am CDT

Break
Tuesday October 15, 2019 10:00am - 10:30am CDT
201-202 Foyer

10:30am CDT

B1a Using Behavioral Prompts to Improve Saving and Investment Decisions [CFP Behavioral Finance]
The objective of this research is to enhance understanding of the behavioral biases that may adversely impact younger generations’ financial outcomes.  Research based on national survey data suggests that differences in overconfidence, financial literacy, risk preferences, and present bias all impact saving and investment decisions.  In an incentivized laboratory experiment, subjects make investment and asset allocation decisions over a meaningful time horizon.  We test the efficacy of alternative behavioral prompts to motivate optimal saving decisions. Specifically, we consider the effects of invoking the future self, setting goals in advance, and accessing professional or peer advice.  A major contribution of this research is that we control for idiosyncratic time preferences, risk tolerance, overconfidence and financial literacy when studying the impact of various interventions.

Author(s): Vickie Bajtelsmit, Jennifer Coats

Presenters
avatar for Vickie Bajtelsmit, PhD

Vickie Bajtelsmit, PhD

Professor, Colorado State University


Tuesday October 15, 2019 10:30am - 11:20am CDT
201 A

10:30am CDT

B1b Why Financial Planner Should Know Clients’ Psychological Factor Even in a Same Job: An Exploratory Study About Farmers [CFP Behavioral Finance]
This study investigates the association among being farmers, psychological factors, and demographic factors for three research questions: (a) how respondents can be grouped by being farmer, psychological factors, and demographic factors, (b) whether farmers are showing higher financial well-being, and (c) how psychological factors are associated with the groups. Findings of this research suggest substantial need for more comprehensive approach to financial well-being of people even in the same job category by considering different psychological factors such as financial risk tolerance and demographic profiles.

Author(s): Wookjae Heo, Narang Park, Jae Min Lee

Presenters
avatar for Wookjae Heo

Wookjae Heo

Assistant Professor, South Dakota State Universiy


Tuesday October 15, 2019 10:30am - 11:20am CDT
201 A

10:30am CDT

B2a Cross Country Differences in the Profitability from Technical Analysis Strategies
In theory technical analysis may work because of three reasons: 1) herding behavior, 2) prices being partially revealing and 3) sentiments. Our empirical cross-country evidence from 50 countries shows that technical analysis indeed works particularly well in countries that score highly on different proxies for herding and information uncertainty. As a crude indication our combined set of proxies explain around 65% of the variation in cross country profits from technical analysis strategies. Our result may explain why studies using data from different countries find mixed results on the profitability of technical analysis.

Author(s): Jiali (Jasmine) Fang, Ben Jacobsen

Presenters
JJ

Jiali (Jasmine) Fang

Senior Lecturer, Massey University


Tuesday October 15, 2019 10:30am - 11:20am CDT
201 B

10:30am CDT

B2b Kiwisaver: The First Ten Years
This paper provides an overview of the development of the KiwiSaver scheme launched in New Zealand in 2007, including the changes that have occurred in the scheme.  It explores the growth in KiwiSaver membership and savings that has occurred. The question of the success of KiwiSaver in achieving its objectives is considered, including the use of KiwiSaver contributions to assist with the purchase of first homes is examined

Author(s): Claire Matthews

Presenters
avatar for Claire Matthews

Claire Matthews

Director, Academic Quality, Massey Business School


Tuesday October 15, 2019 10:30am - 11:20am CDT
201 B

10:30am CDT

B3a Slow and Steady Wins the Race: The Impact of Chasing Returns on Quartile Rankings
This paper explores whether passive fund managers who aim to be in the 1st quartile by chasing higher returns (i.e. higher risk) are more likely to achieve their goal compared with those that chase somewhat lesser returns (i.e. lower risk). Using monthly historical returns from 01/01/1979 to 01/01/2018, we show that if a fund’s goal is to achieve higher AUM, it should aim to be in the 1st quartile every year. However, if a fund’s long-term goal is to stay in the 1st quartile, it should aim to be in the 2 nd quartile every year.

Author(s): Rama Malladi, Jennifer Brodmann

Presenters
RM

Rama Malladi

Associate Professor of Finance, California State University, Dominguez Hills


Tuesday October 15, 2019 10:30am - 11:20am CDT
202 AB

10:30am CDT

B3b Financial Elder Abuse: A (Dis)confirmatory Analysis
This study seeks to confirm the Mature Market Institute findings on financial elder abuse, published in 2009 and 2011. It failed to do so on many accounts using empirical analysis.

Author(s): Steven Lee

Presenters
avatar for Steven Lee

Steven Lee

PhD Candidate, The American College of Financial Services


Tuesday October 15, 2019 10:30am - 11:20am CDT
202 AB

11:30am CDT

C1a Associations of Personality Traits and Life Insurance Ownership Among Elderly Americans [CFP Insurances Issues]
This study investigates the determinants of consumer demand for life insurance.  The literature suggests a behavior gap exists between the economic need for life insurance and the low propensity of consumer demand for insurance products.  Researchers have examined potential factors for this life insurance demand “puzzle” with possible explanatory factors such as individual preferences, literacy level, and financial constraints.  Although, many factors have been studied, the life insurance demand “puzzle” persists.  This study contributes to the literature by investigating the association between personality traits and life insurance ownership as a possible explanation for life insurance consumer demand.  Financial planners and life insurance professionals could benefit from understanding their client’s personality traits to tailor recommendations in a way that could increase the efficiency of the client's information processing, and thus potentially influence a positive life insurance purchase decision.   

Author(s): Preston Cherry

Presenters
PC

Preston Cherry

Doctoral Student, Texas Tech University


Tuesday October 15, 2019 11:30am - 12:20pm CDT
201 A

11:30am CDT

C1b Gender Differences in Life Insurance Use: Evidence from the 2016 Survey of Consumer Finances [CFP Insurances Issues]
A substantial body of research shows that the financial behaviors of men and women differ significantly. As one example, women are less likely to carry life insurance and more likely to be underinsured (Insurance Information Institute, 2010). Around 43% of adult women do not have life insurance, with many of those who do carry life insurance being underinsured. On average, women’s life insurance coverage is only about 69% of men’s coverage. Women carry only twice their income in life insurance coverage, while men carry life insurance that is nearly three times their earnings (MetLife, 2013). Among women who earn $50,000 per year, 52% report that they do not carry an adequate amount of life insurance, or they are not sure if they have enough (MetLife, 2012). The purpose of this study is to explore gender differences in life insurance use and coverage using a life-cycle framework.

Author(s): Travis Mountain, Patti Fisher

Presenters
avatar for Travis Mountain

Travis Mountain

Assistant Professor, Virginia Tech


Tuesday October 15, 2019 11:30am - 12:20pm CDT
201 A

11:30am CDT

C2a Do Sophisticated Investors Have Higher Levels of Personal Financial Wellness?
How do ‘investors’ differ from the general US population? Are there differences between the two groups in the components of financial wellness? If so, would this shed more light on the factors that influence financial choices? Using Soo’s (2008) financial wellness conceptual framework, as well as data from the National Financial Capability Study (2015), this analysis explores the four basic components of financial wellness: (1) objective status, (2) financial satisfaction, (3) financial behaviors, and (4) subjective perceptions. Are the investors, or those who engage in more complex financial behaviors, different in a significant or predictable way? Understanding what leads individuals to participate in higher-level financial practices will help researchers and policy makers design and develop more effective financial literacy initiatives and policies. By examining financial decisions through a more holistic lens, hopefully we will consider more holistic, long-term approaches to financial wellness.

Author(s): Colleen Tokar Asaad

Presenters
CT

Colleen Tokar Asaad

Assistant Professor, Baldwin Wallace University


Tuesday October 15, 2019 11:30am - 12:20pm CDT
201 B

11:30am CDT

C2b Underlying Dynamics in Life Satisfaction: Finite Mixture Model of Psycho-behavioral Characteristics and Health Risk Behaviors
This study investigated the effects of psycho-behavioral characteristics, such as financial stress, health risk behavior, and self-efficacy, on level of life satisfaction by estimating the latent-subgroup differences using a finite mixture regression model. Results from this study describe profile of individuals struggling in multiple life situations that would affect each other and happen concurrently. The effects of financial stress, health risk behavior, and self-efficacy variables on life satisfaction differed by the detected four clusters. Compared to results from an Ordinary Least Square (OLS) regression, dynamics of certain variables were better identified when the relationship was analyzed by latent group characteristics. For example, marginal effect of smoking at different clusters offset each other, making the effect of the variable positive and significant effects of financial stress, alcohol, and locus of control financial stress, which varied by groups, became insignificant in the OLS model. The findings provide the importance of capturing difference between groups in analyzing the relationship between life satisfaction and psycho-behavioral characteristics, and suggest a need for intervention strategies to promote healthy coping mechanisms in response to life struggles. 

Author(s): Jae Min Min Lee, Wookjae Heo, Narang Park

Presenters
avatar for Jae Min Lee

Jae Min Lee

Associate Professor, Minnesota State University, Mankato


Tuesday October 15, 2019 11:30am - 12:20pm CDT
201 B

11:30am CDT

C3a Debt Load Among College Students
The purpose of this study is to analyze the debt load of college-aged students. We aim to identify those factors that explain variations in debt. Our explanatory variable of interest is financial literacy. That is, our objective is to determine if debt loads vary with financial knowledge. This research is significant due to the growing levels of consumer debt among college students.

Author(s): Stephanie R. Yates

Presenters
avatar for Stephanie Yates

Stephanie Yates

Endowed Professor and Director, Regions Institute for Financial Education, University of Alabama at Birmingham


Tuesday October 15, 2019 11:30am - 12:20pm CDT
202 AB

11:30am CDT

C3b The Effect of Household Student Debt on Life Satisfaction
This paper complements the work of Kim and Chatterjee (2018) by examining the effect of student debt on life satisfaction for both all and retired households using longitudinal data set from the 2011-2017 U.S. Panel Study of Income Dynamics (PSID). The study estimates the random effects ordered probit model with Mundlak correction. The findings from the current study indicate that, for both all and retired households, the presence of student debt decreases the probability that households will report “very satisfied” or “completely satisfied” with life compared to households without student debt. The incidence of student debt, however, increases the probability that households will report either “not at all satisfied,” “not very satisfied,” or “somewhat satisfied.” The amount of student debt also shows similar effects on life satisfaction, although the effect is non-monotonic. Unlike the results for all households, the results for retired households are both statistically and economically significant.

Author(s): Thomas Korankye, Charlene Kalenkoski

Presenters
avatar for Thomas Korankye

Thomas Korankye

PhD Candidate, Texas Tech University


Tuesday October 15, 2019 11:30am - 12:20pm CDT
202 AB

12:30pm CDT

Keynote Presentation, Business Meeting, and Luncheon
Luncheon including Awards for Best Papers, Annual Business Meeting, and Keynote Presentation from Cora Pettipas, Senior Manager, Global Financial Planning at HSBC.

Speakers
avatar for Cora Pettipas

Cora Pettipas

Senior Manager Global Financial Planning, HSBC


Tuesday October 15, 2019 12:30pm - 2:20pm CDT
205 AB

2:30pm CDT

D1a Information Illusion: Placebic Information and Stock Price Estimates [CFP Investment Issues]
Langer et al. (1978) refer to a certain type of irrelevant data as “placebic information”. When making investment decisions, retail investors commonly receive a considerable amount of placebic information from financial advisors, analyst reports, oetc. The purpose of our study is to analyze how investors perceive placebic information and whether placebic information influences investors’ stock price forecasts. For our analysis we initiate a questionnaire-based stock price forecast competition. 197 participants are asked to forecast the stock price in three months’ time and an upper and lower bound of the stock price that will not be exceeded or undercut with more than five percent probability, respectively, within the next three months. With an increasing amount of placebic information, participants state to have significantly more relevant information available to accurately forecast the stock price. Hence, participants are subject to an information illusion as they perceive placebic information as actually relevant information. 

Author(s): Andreas Oehler, Matthias Horn, Stefan Wendt

Presenters
AO

Andreas Oehler

Chair of Finance, Bamberg University


Tuesday October 15, 2019 2:30pm - 3:20pm CDT
201 A

2:30pm CDT

D1b Moderation of Confidence Level on the Impact of Investment Risk Tolerance on Portfolio Risk [CFP Investment Issues]
Investors need to carefully select the proportion of various assets to minimize the portfolio risk for a given expected return. Appropriate portfolio risk is good for investment. This study analyzes the relationship between financial risk tolerance, confidence levels, and investment portfolio risk. Meanwhile, this paper uses the level of confidence to measure the overestimation or underestimation of financial knowledge and contributes to the literature by demonstrating whether over-confidence or under-confidence of financial knowledge affects portfolio risk and whether it moderates the impact of investment risk tolerance on portfolio risk.

Author(s): Zheying Yao, Abed Rabbani

Presenters
ZA

Zheying (Anthea) Yao

PhD Student, University of Missouri - Columbia


Tuesday October 15, 2019 2:30pm - 3:20pm CDT
201 A

2:30pm CDT

D3a Brawl at the Gates: How DLT is Transforming the Financial Services Sector
Rarely does an idea evoke such intensity of extreme emotions, as in the case of the distributed ledger technology (DLT) and its native digital currency system called Bitcoin. The technology together with its ecosystem was even investigated before the US Senate Committee, where it was explicitly debunked by the critics. This article is concerned with the gradual process of assimilating DLT within the financial services sector. Its main purpose is to draw attention to a set of important transformative implications DLT might have on the interaction, business processes, and growth opportunities of the financial intermediaries in the near future.

Author(s): Mieszko Mazur

Presenters
MM

Mieszko Mazur

Professor, IÉSEG School of Management


Tuesday October 15, 2019 2:30pm - 3:20pm CDT
202 AB

2:30pm CDT

D3b Day-of-the-Week Effects in Virtual Currency Markets: Evidence from Bitcoin
Bitcoin, was introduced in late 2008 but became very popular all over the world. The trading volume, returns and risks of Bitcoin have increased significantly in recent years. In this paper I extend the evidence on seasonal anomalies (day-of-the-week, monthly and holiday effects) by examining the return patterns of Bitcoin markets to establish whether previously observed predictabilities in stock returns are reflected in the returns of Bitcoin. This determination is consequential because institutional characteristics of Bitcoin may allow exploitations of observed seasonal anomalies by proposing different trading strategies. Using the daily in-sample and out-of-sample data, I also examine the performances and cross-correlations of Bitcoin with major financial assets (stock, bonds, currency, commodities etc.) which may have implications for investors’ portfolio diversifications and market efficiency.Findings of this paper may have further implications for both the investors and regulators since Bitcoin is still considered as a self-regulated and decentralized cryptocurrency.

Author(s): Imtiaz Mazumder

Presenters
IM

Imtiaz Mazumder

Associate Professor, St. Ambrose University


Tuesday October 15, 2019 2:30pm - 3:20pm CDT
202 AB

3:30pm CDT

HSBC Best Papers Presentation 1- The Role of Trust in Building the Client-Planner Relationship
This Australian study utilises quantitative and qualitative research methods to identify characteristics of trust unique to personal financial planning. Affective characteristics of trust were found to be essential to the client-adviser relationship. Increased legislation and specific behavioural and technical competencies of advisers were also found to build consumer trust in financial advice. The study’s results provide guidance to financial advisers with regards to the skills and factors that build and maintain trust with clients. This may lead some advisers to engage in additional training or education programs to improve specific skills, or to reconsider the way they interact with clients.

Presenters
MC

Michelle Cull

Director of Academic Program, Accounting & Financial Planning, Western Sydney University


Tuesday October 15, 2019 3:30pm - 4:20pm CDT
202 AB

3:30pm CDT

HSBC Best Papers Presentation 2- Credit Usage, Payment Behavior, and the Accuracy Of Consumer Credit Files
Through intensive interviews, examination of credit reports, and rescoring of corrected credit files, the researchers consider household characteristics, major life events, financial resources, and payment habits as they study the integrity of credit-bureau data, vulnerability to error, and results of disputes filed with the major credit bureaus.
Credit usage and management are found to vary widely within demographic groups. Vulnerability to error and outcomes of disputes depend primarily on the credit record itself. Consumers with moderate credit scores are more likely than those with very high or low scores to see significant improvement in their records when errors are corrected.


Presenters
avatar for L. Douglas Smith

L. Douglas Smith

Founders Professor and Director, University of Missouri-St. Louis


Tuesday October 15, 2019 3:30pm - 4:20pm CDT
202 AB

4:29pm CDT

P100 Wiley Poster Session and Reception
Hosted by Wiley.


Tuesday October 15, 2019 4:29pm - 6:00pm CDT
205 AB

4:30pm CDT

P101 Estimating Test-Retest Reliability Scores for Financial Risk-Taking Questionnaires
This poster will present test-retest reliability estimates for three widely used risk-tolerance/aversion tools.

Author(s): John Grable

Presenters
avatar for John Grable

John Grable

Professor, University of Georgia
We provide leading-edge teaching, research and outreach that improves the economic well-being for families, increases the quality of life in communities and prepares future leaders and entrepreneurs.Our graduates are entrepreneurs, financial planners, consumer journalists, community... Read More →


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P102 Does Seeking Financial Help Moderate the Association Between Past Trauma and Financial Planning Decisions of Households: Evidence from a National Study
This study examines the association between trauma and financial planning decisions of households. By using the 2016 Health and Retirement Study, this paper examines whether past trauma is negatively associated with financial decision making of households and whether seeking professional financial help can moderate the negative effects of past trauma on current financial planning behavior of households.

Author(s): Youngjoo Choung, Swarn Chatterjee, Lu Fan

Presenters
avatar for Swarn Chatterjee

Swarn Chatterjee

Professor, University of Georgia


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P103 Examining the Alternative Financial Service Use among Millennials Using the Information-Motivation-Behavioral Skills Model
Borrowing alternative financial service (AFS) loans is often associated with high interests and thus leads to less optimal financial consequences. Previous literature shows financial knowledge and financial management ability have a significant association with AFS borrowing behaviors. Millennials are vulnerable borrowers because they are lacking in financial capability. Using the information-motivation-behavioral skills (IMB) model, this study examines the relationships between financial knowledge, negative credit experience, financial skills, and AFS product use among millennials. Findings of this study can provide significant practical implications.

Author(s): Narang Park, Lu Fan

Presenters
NP

Narang Park

PhD Candidate, University of Georgia


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P104 Financial Well-Being of Vulnerable Populations
The objective of this study is examining the financial well-being of the vulnerable population. By using the 2016 Financial Well-Being survey conducted by the Consumer Financial Protection Bureau, we argue that despite higher education and possession of financial knowledge, systemic discrimination against vulnerable populations discourage their financial well-being. Previous studies tried to determine the determinants of financial well-being from various dimensions and used them as an independent variable. Contrary to previous studies, our study uses this variable as a dependent variable and examines the financial well-being of vulnerable population and whether financial literacy or education attainment can help in increasing the financial well-being of under-served populations.

Author(s): Marty Cotwright, Seongsu Kim, Swarn Chatterjee

Presenters
MC

Marty Cotwright

PhD Student, University of Georgia


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P105 Precautionary Savings Behaviour and Borrowing for Health Shocks among Saudi Arabians
A study on whether an individual’s health is related to whether they have an emergency fund. while studies have examined numerous issues related to financial planning in Saudi Arabia, no study has examined the extent to which an individual’s health is related to whether they have an emergency fund. This study examines whether a Saudi individual who had borrowed to cover health costs in the previous 12 months were less likely to have an emergency fund than were Saudi individuals who had not borrowed to cover health costs in the previous 12 months. A probit model is estimated using a pooled cross-section data from the 2014 and 2017 from the World Bank’s Global Findex database. The result of this study can help individuals and agencies interested in encouraging the development of an emergency fund. _x000D_  

Author(s): Eiman Osseilan

Presenters
EO

Eiman Osseilan

Doctoral Student, Texas Tech University


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P106 Psychological resources and financial stress response
Personal finance research has found that financial deficit (e.g., indebtedness, hardly making ends meet) or financial shocks (e.g., job loss, foreclosure) are likely to create a higher level of financial stress. Defined as “a psychophysiological response to the cognition of imbalance, uncertainty, and risk in the realm of financial resource management decision making” (Heo, Cho, & Lee 2017, pp. 4-5), Heo, Cho, and Lee (2017) developed a new scale of financial stress incorporating emotional and physiological responses of financial stress. The purpose of this study is to examine the effect of psychological resources in perceiving financial stress. The psychological resources in this study are financial self-efficacy, external locus of control, self-esteem, and risk tolerance. These are factors known to be associated with diverse financial management behaviors. This study is significant in that it applies a new scale of financial stress that reflects biophysiological responses in addition to the affective and behavioral reaction.

Author(s): Narang Park, Wookjae Heo, Jae Min Lee

Presenters
NP

Narang Park

PhD Candidate, University of Georgia


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P107 The Impact of Social Support on Financial Satisfaction for Senior Couples
Relationship dynamics play a role in financial satisfaction for couples. Family financial issues are consistently reported as an area of difficulty faced by married couples.  General social support has been shown to reduce the negative effects of life events. Support derived from spouse plays a key role in enhancing marital financial satisfaction. The purpose of this research is to investigate the relationship between social support types and financial satisfaction. This study utilized four social support classifications as the conceptual theoretical framework to operationalize types of social support within coupled relationships. The Health and Retirement Study served as the data source. An ordered probit model is employed to estimate higher financial satisfaction levels for older American couples. Model results revealed that three of the four social support scales were related to higher financial satisfaction. Financial planners can utilize these findings to provide effective communication interventions for improving couples’ financial satisfaction.   

Author(s): Liqin Shen, Blake Gray, Sarah Asebedo

Presenters
avatar for Liqin (Ellen) Shen

Liqin (Ellen) Shen

PhD Student/Teaching Assistant, Texas Tech University


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

4:30pm CDT

P108 The Relationship Between Household Agreement and Financial Satisfaction
Financial planners often work with clients that disagree about how to invest their retirement savings. This research uses economic bargaining theory as a framework to model the effect of agreement or disagreement on financial satisfaction. Based on the received literature disagreement amongst spouses reduces their financial well-being. Planners can help mediate financial disagreements that may arise because of poor bargaining amongst spouses. Planners that help clients reslove disagreements will have better relationships with their clients which will benefit both their practice and clients life satisfaction. We use RAND HRS and HRS LB Psychosocial and Lifestyle questionairres as data sets to support our hypothesis that successfully bargained or cooperative spousal investment decisions are more likely to have higher levels of financial satisfaction.

Author(s): Blake Gray, Yi Liu, Sarah Asebedo

Presenters
BT

Blake Thomas Gray

PhD Student, Research Assistant, Texas Tech University


Tuesday October 15, 2019 4:30pm - 6:00pm CDT
205 AB

6:15pm CDT

AFS Program Director's Meeting
Tuesday October 15, 2019 6:15pm - 7:15pm CDT
Hilton Minneapolis
 
Wednesday, October 16
 

7:00am CDT

FPA® Ethics: New Standards for a Fiduciary World [CFP CE]
For more details, visit the FPA® Full Schedule.

In this informative and engaging session, participants will use polls, videos and case studies to understand the learning objectives required by CFP Board for ethics training. Topics for this training include the revised Code and Standards and the affect on CFP® professionals, acting in accordance with CFP Board's fiduciary duty, applying the practice standards when providing Financial Planning, identifying situations when specific information must be provided to a client and managing Material Conflicts of Interest.

Learning Objectives:
  • Identify the structure and content of the revised Code and Standards, including significant changes and how the changes affect CFP® professionals.
  • Describe actions to be in accordance with CFP Board's fiduciary duty
  • Applying the Practice Standards when providing Financial Planning

Speakers
DC

Daniel Candura, CFP®

Candura Group, LLC


Wednesday October 16, 2019 7:00am - 8:45am CDT
101 DEFG

7:00am CDT

Registration
Wednesday October 16, 2019 7:00am - 5:00pm CDT
201-202 Foyer

8:00am CDT

FPA® Connection Kick-off
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 8:00am - 8:45am CDT
101 ABC

8:00am CDT

FPA® New Planner Breakfast
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 8:00am - 8:45am CDT
200 ABCDE

8:00am CDT

Breakfast with Wiley: Resources for Personal Finance
Join Wiley for a hot breakfast and an interactive discussion to help shape the future of personal finance curriculum. Wiley's Executive Finance Editor Emily Marcoux and Marketing Manager Jenny Geiler will also give attendees a sneak peek at new resources available in WileyPLUS.


Wednesday October 16, 2019 8:00am - 9:00am CDT
202 AB

9:00am CDT

FPA® General Session: Mentoring and Role Models: A View From the Bench
For more details, visit the FPA® Full Schedule.

A discussion of the role that each of us can play in creating hope for the future by being personally involved in the lives of the young people around us.



Speakers

Wednesday October 16, 2019 9:00am - 10:30am CDT
Main Auditorium

10:30am CDT

Break
Wednesday October 16, 2019 10:30am - 10:45am CDT
Foyer

10:45am CDT

FPA® Academic Research Presentations (JFP/AFS), Part 1 [CFP CE]
For more details, visit the FPA® Full Schedule.
  1. A Comparison Study of Individual Retirement Income Bucket Strategies
    Author(s): Yuanshan Cheng
  2. What Investors Value and What Advisors Think Investors Value
    Author(s): Samantha Lamas, Ryan O. Murphy, Ray Sin
  3. Are Optimistic Investors Smarter and Alone
    Author(s): Andrew Scott

Wednesday October 16, 2019 10:45am - 11:45am CDT
205 AB

10:45am CDT

FPA® Educational Breakout Sessions | Block 1: Advisory Firms in 2030: The Innovation Imperative
For more details, visit the FPA® Full Schedule.

Panelist(s):
John Anderson, Managing Director - Managing Director - Head of Practice Management, SEI

Wednesday October 16, 2019 10:45am - 11:45am CDT
101 HIJ

10:45am CDT

FPA® Educational Breakout Sessions | Block 1: How an Adviser Can Add Value Through Behavioral Coaching [CFP CE]
For more details, visit the FPA® Full Schedule.

Gain a deeper understanding of behavioral coaching using the Vanguard Advisor’s Alpha tenet that can provide the most value for your clients. Learn why consumers’ typical, ratings-driven approach to decision making doesn’t translate well to the investment world. And, finally, understand the techniques financial planners can apply as an effective behavioral coach—especially in the role of an emotional “circuit breaker.”

Learning Objectives:
  • Describe the consumer decision-making process and why a ratings-driven process does not work well in the investment world.
  • Develop communication techniques in coaching clients to stick with their financial plans

Presenters
JE

Jim Entwisle

National Speaker, Advisor Education Specialist, Vanguard


Wednesday October 16, 2019 10:45am - 11:45am CDT
M100 ABCDE

10:45am CDT

FPA® Educational Breakout Sessions | Block 1: Scary Things Keeping Your Clients Up at Night: Paying for College and Discussing it with Kids! [CFP CE]
For more details, visit the FPA® Full Schedule.

It is shocking how few parents have a family strategy for paying for college and how most don't even discuss it with each other and/or with their child. They don't have enough saved for college and also don't way to overburden their students with loans. In this session, learn how financial planners can help families develop a philosophy and strategy for paying for college, getting loans and plan for their child's education that aligns with everyone's goals.

Learning Objectives:
  • Develop a communication plan for families to discuss college funding strategies
  • Apply simple frameworks for education planning to determine appropriate student loan debt

Speakers
CW

Cozette Wittman

Education and Partnerships, College Inside Track


Wednesday October 16, 2019 10:45am - 11:45am CDT
101 ABC

10:45am CDT

FPA® Educational Breakout Sessions | Block 1: Serving the Morphed Culture and the AUM-Light
For more details, visit the FPA® Full Schedule.

Planners see clients through a lens shaped by their own life experience and training. Often the model is a (white) HNW family that is not representative of most families. Different cultures and value systems impact a client’s financial decisions and for many clients, political and financial systems along with cultural differences have left them AUM-light. In this session, we explain how financial goal prioritization and decision making intersects with one's societal and cultural upbringing. Also, learn how non-traditional business models can profitably serve the AUM-light client and can grow your practice.

Learning Objectives:
  • Understand the importance of cultural sensitivity when considering a prospect's assets under management
  • Identify morphed culture in a global society

Speakers
JB

James Brewer, MBA, CRPC®, AIF®, CFP®, CDFA®, CFSLA

Envision Wealth Planning Inc., Envision Wealth Planning Inc.
ND

Nandita Das, PhD, CFA, CFP®, EA, RICP®

Associate Professor of Finance, Delaware State University


Wednesday October 16, 2019 10:45am - 11:45am CDT
101 DEFG

10:45am CDT

FPA® Educational Breakout Sessions | Block 1: The New Era Of Wellth Management [CFP CE]
For more details, visit the FPA® Full Schedule.

It's not a typo! The New Era Of Wellth Management an empowering way to integrate the more personal and emotional side of retirement planning with the traditional dollars and cents. In its current form, retirement planning is fatally flawed and can serve as the primary reasons why people fail in making the transition from work-life to home life. However, armed with the latest social science, research, and real-life applications, financial professionals can use the concept of Wellth Management as a meaningful way to deeper client relationships while improving retirement satisfaction and outcomes.

Learning Objectives:
  • Discuss the non-financial aspects of retirement that include mental, social, and physical factors of life in retirement in a way that allows clients to be better prepared for both the financial and personal aspects by using the latest social science and empirical evidence
  • Identify non-financial issues and challenges that clients face in their retirement decision making while providing fresh ideas and opportunities to address them
  • Use non-financial topics and conversations to deepen their existing client relationships, become more referable, and grow their business

Speakers
RL

Robert Laura, CPRC, AAMS, CMFC, CRPC, CKA

Founder and President, Wealth & Wellness Group


Wednesday October 16, 2019 10:45am - 11:45am CDT
200 ABCDE

10:45am CDT

FPA® Educational Breakout Sessions | Block 1: Understanding How Different Types of Annuities Work [CFP CE]
For more details, visit the FPA® Full Schedule.

Annuities with lifetime income provisions offer risk pooling, which tends to be underappreciated as a unique source of returns that is unavailable for an investment portfolio. But there are many types of annuities in the marketplace and understanding how they work can be complex. This presentation seeks to provide a better understanding about different types of annuities, including income annuities such as single-premium immediate annuities, deferred variable annuities, and fixed index annuities. For the latter two, we will focus on how they provide exposure to market upside and on how optional guaranteed lifetime withdrawal benefit riders can support lifetime spending.

Learning Objectives:
  • Distinguish between annuitized and deferred annuity contracts
  • Compare and contrast fixed and variable annuities
  • Analyze differences in supporting lifetime income for immediate annuities, fixed index annuities, and variable annuities

Presenters
WP

Wade Pfau, PhD, CFA

Professor, The American College for Financial Services


Wednesday October 16, 2019 10:45am - 11:45am CDT
200 FGHIJ

10:45am CDT

FPA® Latino Knowledge Circle
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 10:45am - 11:45am CDT
102 A

10:45am CDT

E1a Focusing on Both Sides of the Balance Sheet: The Benefit of Liability Optimization
Debt has become an increasingly significant issue among American families. Based on an analysis using the 2016 Survey of Consumer Finances (SCF), we estimate average household debt-interest payments exceed the expected returns on financial assets by more than 50%. In this study, we analyze the different economic, demographic and behavioral factors that are associated with household borrowing and leverage ratios. Then, we investigate whether the attributes related to different debt categories are similar by separating the “good” and “bad” debts. After checking the prevalence of high-interest debts, we perform “alpha-equivalent analysis” (compare debt interest savings with investment income) to calculate the potential benefits of liability optimizations. The results indicate that households with lower assets, income, and education levels need the most assistance and could significantly benefit from debt management. Families with myopic planning horizons are more likely to carry a higher amount of “bad” debts, such as credit card balances.

Author(s): Zhikun Liu, David Blanchett

Presenters
avatar for Zhikun Liu

Zhikun Liu

Director of Research, Empower Retirement®


Wednesday October 16, 2019 10:45am - 11:45am CDT
201 A

10:45am CDT

E1b Career and Education Choice as Central Elements of Long-Term Financial Planning
Career and education choice play a central role in individual’s long-term financial planning. In this study, we focus on answering the question of whether higher education is still financially valuable. We define an individual’s wealth in terms of human capital (expressed as the present value of future earnings) in the function of overall wealth. We argue that human capital accounts for the majority of an individual’s wealth portfolio in most cases. By including human capital in the traditional portfolio choice framework, we show that the choice of career and education level has a significant effect on the Sharpe ratio of an individual’s overall wealth portfolio. We conclude by finding the present values of future earnings streams for individuals of various education levels from a number of occupations. The calculations are meant to provide some guidance on both career and education level choices.

Author(s): Inga Timmerman, Nikanor Volkov

Presenters
IT

Inga Timmerman

Associate Professor, California State University, Northridge


Wednesday October 16, 2019 10:45am - 11:45am CDT
201 A

10:45am CDT

E2a Do Misleading Financial Advisor Credentials Actually Mislead Investors?
The attention surrounding credentials in the investments industry has increased since 2005 as the number of financial credentials tracked by The Financial Industry Regulatory Authority (FINRA) ballooned from 48 in 2005 to 160 in 2015. This issue has caused the Consumer Financial Protection Bureau and FINRA to investigate the academic rigor of financial designations even though neither organization has provided empirical evidence that such credentials actually confuse or mislead investors. This paper investigates whether or not such credentials mislead investors and, if such credentials are misleading, this paper will investigate how they deceive investors.

Author(s): Patrick Lach, Michael Breazeale

Presenters
PL

Patrick Lach

Assistant Professor, Lach Financial


Wednesday October 16, 2019 10:45am - 11:45am CDT
201 B

10:45am CDT

E2b Financial Designations: Can they be Gateways to Financial Planning Education?
Professional designations offered by the College for Financial Planning are designed to provide additional levels of knowledge and expertise and add credibility to the financial advisors who successfully earn them. While designations may be pursued either before or after an individual earns the CFP certification, can the professional designation education programs serve as a gateway to the CFP education program? This study found that only the Foundations in Financial Planning (FFPN) course has a higher percentage of female and African-American students than the CFP education program, with all other designations having a higher percentage of white male students attempting them prior to attempting the CFP education program. This study also found relevance between designation programs and CFP education. Actively promoting designations to women and minorities may provide a greater understanding of the topics and concepts required to be successful and increase confidence when attempting the CFP education program.

Author(s): Aman Sunder, David Mannaioni, Rebecca Henderson, Jim Pasztor

Presenters
avatar for David Mannaioni, CFP®, MPAS

David Mannaioni, CFP®, MPAS

Dean of Academic Programs, College for Financial Planning


Wednesday October 16, 2019 10:45am - 11:45am CDT
201 B

10:45am CDT

E3a Exploring the Use of Active Learning to Increase Financial Planning Students’ Confidence and Capability
Universities serve an important role in the development of financial services professionals. This project is a preliminary analysis of student performance in financial planning courses redesigned from a traditional lecture format to an active learning format. Active learning literature from higher education, accounting, and STEM guided the course redesigns. Participants are undergraduate students in financial planning programs at two southeastern state universities in the U.S. Experiential learning and service learning have been documented in the literature; however, these pedagogies are community-based and external to the classroom. Financial planning literature regarding instructional techniques in the classroom is limited. Additional studies are needed to evaluate the effectiveness of active learning in financial planning classrooms. The purpose of this study is to measure, evaluate and record the effectiveness of course redesigns for large sections of an introductory personal finance course and core courses in the curriculum of the financial planning major.  

Author(s): Kenneth White, Kimberly Watkins, Michael Thomas, Lance Palmer

Presenters
KJ

Kenneth John White, Jr.

Assistant Professor, University of Georgia


Wednesday October 16, 2019 10:45am - 11:45am CDT
202 AB

10:45am CDT

E3b The Relationship between Personality Traits and Stock Investment Decisions as Mediated by Financial Risk Preference
This paper investigates the mediation relationship of individuals’ financial risk preference between their personality traits and stock investment decisions by using the 2014 Health and Retirement Study (HRS). Structural equation model results show that that individuals’ stock market participations and stock share investment decisions are influenced by personality traits when considering financial risk preference as a mediator.  Results indicate that those with higher openness and extroversion are more likely to participate the stock market and have higher stock share in their investment portfolios. These with higher conscientiousness and agreeableness are less likely to participate the stock market and have lower stock share in their investment portfolios.  Financial planning implications are provided.

Author(s): Yi Liu, Sarah Asebedo

Presenters
avatar for Yi (Bessie) Liu

Yi (Bessie) Liu

Ph.D. Candidate, Texas Tech University
Yi (Bessie) Liu is a Ph.D. student in the Department of Personal Financial Planning at Texas Tech University. She aims to serve diversified groups especially for first and second generation immigrants as well as Asian-Americans to assist them in achieving a better financial futur... Read More →


Wednesday October 16, 2019 10:45am - 11:45am CDT
202 AB

11:00am CDT

FPA® Financial Planning Challenge: Case Study Presentations [CFP CE]
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 11:00am - 5:00pm CDT
102 DE

11:30am CDT

FPA® Exhibit Hall Grand Opening & Lunch
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 11:30am - 1:45pm CDT
Exhibit Hall B

11:30am CDT

FPA® Exhibit Hall
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 11:30am - 7:00pm CDT
Exhibit Hall B

12:00pm CDT

FPA® Quick Start: Developing Your Personal Marketing Plan
For more details, visit the FPA® Full Schedule.

What do you want to be known for?

How can you stand out from all the other planners around you?

In this lively Quick Start session, Adam Kornegay will provide a simple 5-step process to share what you do with the people who need to hear it.

Topics will include:
  • Identifying your three marketing anchors;
  • Using stories to demonstrate your value;
  • Finding your best audience;
  • Creating an actionable plan for your marketing efforts
Using real-world examples, Adam will help you develop a personal marketing plan that is unique to you and your strengths.

Speakers
AK

Adam Kornegay, RCC™

Partner, Pathfinder


Wednesday October 16, 2019 12:00pm - 12:30pm CDT
101 HIJ

12:00pm CDT

FPA® Quick Start: Inspiring Client Trust: Insights from the Latest Research on Risk Assessment [CFP CE]
For more details, visit the FPA® Full Schedule.

Do your clients really trust you? Many investors fear that advisers are just selling them products, rather than providing them appropriate investment solutions. In this session, learn about the latest research on risk assessment and how new risk assessment approaches provide insights into how to better achieve client goals and help find investment solutions that inspire client trust and confidence.

Learning Objectives:
  • Identify he key factors important for client risk assessment: including subjective risk preference, objective risk capacity and the risk/return needs to achieve investment goals.
  • Describe a client's appropriate investment risk level by using the latest research
  • Demonstrate how planners can build trust in their recommendations by understanding client unique behaviors and attitudes that impact decision making.

Presenters

Wednesday October 16, 2019 12:00pm - 12:30pm CDT
M100 ABCDE

12:45pm CDT

FPA® Quick Start: Are You Helping Your Clients Efficiently Plan For Longevity?
For more details, visit the FPA® Full Schedule.

Running out of money in retirement isn’t an option, which is why some advisers may be inefficiently managing capital in planning for the unknown longevities of their clients. Allianz Life recently conducted a survey of financial planners and found that 9 out of 10 plan for income well beyond their clients’ life expectancies, possibly leading to inefficient portfolio management. In this session, learn how to more accurately pool risk, provide more certainty of meeting income needs, and offer greater flexibility to free up other assets for potential growth opportunities.

Learning Objectives:
  • Calculate life expectancy assumptions for clients based on individual circumstances
  • Design more efficient income strategies in order to hedge against longevity risk and maximize portfolio value

Presenters
GG

Greg Goin, CFP, CLU, CRPC

Director of Advisory Solutions, Allianz Life


Wednesday October 16, 2019 12:45pm - 1:15pm CDT
M100 ABCDE

12:45pm CDT

FPA® Quick Start: Cultural Intelligence: Understanding Different Values & Behaviors in Financial Planning [CFP CE]
For more details, visit the FPA® Full Schedule.

If a client does not return our smile or avoids eye contact, we might assume that the client does not trust us or is hiding something from us. In fact, smiling and eye contact are behaviors that differ across cultures. While we often think of culture in terms of ethnicity, shared values and behaviors may be based on other commonalities, such as age group or region of the USA. Differences make every group interesting and also bring challenges to understanding a client. The goal of this session is to examine cultural dimensions that affect financial planning and the client relationship.

Learning Objectives:
  • Select appropriate communication techniques with clients from varied cultures and backgrounds
  • Identify bias towards different cultural behaviors in order to build a trusting relationship with clients.


Speakers
SJ

Stephanie J. Lee, CFP®

Principal Advisor, East Rock Financial Services, LLC


Wednesday October 16, 2019 12:45pm - 1:15pm CDT
M100 ABCDE

12:45pm CDT

Wiley Panel Discussion and Lunch: Innovative Teaching Ideas for Personal Finance
A panel of experts will share creative course design ideas and learning activities to address common themes of student motivation, engagement, preparedness, and goal setting.

Panelists:
  • Vickie Bajtelsmit
  • John Grable
  • Lance Palmer
  • Inga Timmerman
  • Stephanie Yates
Lunch will be served!


Wednesday October 16, 2019 12:45pm - 1:45pm CDT
202 AB

1:45pm CDT

F1a CANCELLED Are Optimistic Investors Smarter and Alone?
This study investigates the relationship between investor optimism, financial knowledge, and advice from a finance professional.  While other studies focus on how investor optimism influences financial behavior, this study examines the characteristics associated with investor optimism. We find that optimistic investors think they are more knowledgeable, as measured by subjective financial knowledge. At the same time, optimistic investor they are actually less knowledgeable, as measured by objective investment knowledge.  We also find that optimistic investors are more likely to seek assistance from a broker. Our results highlight the importance of investor education on behalf of the finance professional to ensure realistic market and portfolio expectations.

Author(s): Andrew Scott, Wendy Usrey, Shane Enete, Miranda Reiter, and Martin Seay

Presenters
AS

Andrew Scott

Assistant Professor, Saint Mary's University of Minnesota


Wednesday October 16, 2019 1:45pm - 2:45pm CDT
201 A

1:45pm CDT

F1b Charitable Giving by Married Couples: A Household Bargaining Explanation
Using the 2014 wave of the Health and Retirement Study (HRS) and a Heckman selection model, this paper examines the relationship between married household bargaining power and charitable giving. This paper finds that a household in which the husband’s age is greater than his wife’s age has a higher probability of donating money to charity compared to a household in which the wife is older than her husband. Similarly, a household in which the husband’s education is greater than his wife’s has a higher probability of charitable giving compared to a household in which the wife has a higher degree than her husband. Additionally, this study finds that both spouses’ educations have a significant influence on the probability and the amount of charitable giving. A higher level of education is associated with a higher incidence of charitable giving and the amount of charitable giving. Lastly, increased income and wealth also increase both the probability and amount of charitable giving, all else equal. 

Author(s): Yi (Bessie) Liu, Russell James III

Presenters
avatar for Yi (Bessie) Liu

Yi (Bessie) Liu

Ph.D. Candidate, Texas Tech University
Yi (Bessie) Liu is a Ph.D. student in the Department of Personal Financial Planning at Texas Tech University. She aims to serve diversified groups especially for first and second generation immigrants as well as Asian-Americans to assist them in achieving a better financial futur... Read More →


Wednesday October 16, 2019 1:45pm - 2:45pm CDT
201 A

1:45pm CDT

F2a Is Household’s Risk Perception a determinant of a Household’s Portfolio Choices? Evidence from the 2012 Wave of Health and Retirement Study
It is not an easy task to determine how risk averse a household is when members of the household have different levels of risk aversion (Zhang, 2017)¹. Similarly, it is unclear how risk perceptions of members of a household collectively determine the household-level risk perception. It’s argued that the risk aversion of the person with higher risk aversion in a household should be generally employed as the input into construction of an investment policy statement for a household. However, there exists few research studies which provides emperical guidance by examining the relationship between household-level risk perception and a household’s portfolio choice. This current research intends to fill this research gap. [1] In her paper, Zhang showed that a household has a decreasing relative risk aversion when two household members have different relative risk aversions.  

Author(s): Xianwu Zhang, Charlene Kalenkoski

Presenters
XZ

Xianwu Zhang

Assistant Professor of Finance, John Carroll University


Wednesday October 16, 2019 1:45pm - 2:45pm CDT
201 B

1:45pm CDT

F2b Student-Loan Debt and Philanthropic Behavior of the Household
This study examines student debt and its effects on the philanthropic behavior of households using data sets from the 2011 to 2017 U.S. Panel Study of Income Dynamics. The empirical results show that the presence of student debt on the balance sheet of a household is associated positively to both the probability of making charitable contributions and the amount of charitable donations. The study also finds that the amount of student debt relates positively to the total amount households contribute to charitable organizations. This paper finds no evidence of a statistically significant relationship between the amount of student debt and the probability that a household will donate to charity.

Author(s): Thomas Korankye

Presenters
avatar for Thomas Korankye

Thomas Korankye

PhD Candidate, Texas Tech University


Wednesday October 16, 2019 1:45pm - 2:45pm CDT
201 B

1:45pm CDT

F3a Modern Portfolio Theory and the Efficient Markets Hypothesis: How Well Did They Serve Canada’s Baby-boom Generation?
Modern Portfolio Theory (MPT) and the Efficient Markets Hypothesis (EMH) have influenced portfolio management strategies for an entire generation. Taking the example of an average Canadian family from 1977 to 2016, this paper examines how well MPT and EMH served the baby-boom generation of investors. A model investing strategy was constructed based on the principles of MPT and EMH. The strategy was evaluated for its ability to adequately provide for the subject couple in retirement. Results of this portfolio were compared to other popular investment alternatives. Using generally-accepted rules-of-thumb in financial planning, the MPT strategy was found to have provided an adequate retirement income for the subject couple. Some of the other strategies moderately exceeded the returns of the MPT strategy, while others underperformed this benchmark. Analysis of these discrepancies reinforced the significance of diversificaton and of rebalancing portfolios through dynamic asset allocation.

Author(s): Jim Fischer

Presenters
JF

Jim Fischer

Associate Professor, Mount Royal University


Wednesday October 16, 2019 1:45pm - 2:45pm CDT
202 AB

1:45pm CDT

F3b Perceived versus Actual Investor Sophistication; A Behavioral Study
This research utilizes the National Financial Capability Study (NFCS) funded by the FINRA Investor Education Foundation. The national and state-level data are extracted from the 2015, 2012 and 2009 NFCS State-by-State Surveys, each of which employed nationwide online surveys of over 25,000 American adults. This survey solicits information from individual investors on retirement and non-retirement account investments, actual level of investment sophistication, and self-perceived level of investment sophistication, along with many demographic variables. This study investigates the relationship between actual and perceived investor sophistication to determine retirement preparedness of investors, as well as whether investors understand their level of financial preparedness. It is hypothesized that most investors are not as prepared for retirement nor as sophisticated investors as they believe. Additionally, it is hypothesized that there will be a difference in results related to age, education, and gender.

Author(s): Stuart Michelson

Presenters
avatar for Stuart Michelson

Stuart Michelson

Roland & Sarah George Professor of Finance, Stetson University


Wednesday October 16, 2019 1:45pm - 2:45pm CDT
202 AB

1:45pm CDT

FPA® General Session: Artificial Intelligence and the Future of Work
For more details, visit the FPA® Full Schedule.

For decades, the conventional view among economists was that technological advances create as many new jobs as they take away. In recent years, however, economists have become increasingly concerned that the pace of technological innovation has become so fast that many categories of human workers will be eliminated, without equivalent new job creation—by one estimate, nearly half of all American occupations could be automated in the next twenty years. How can companies, workers, policy makers and educators prepare for the challenges and opportunities that will come along with our automated future?


Wednesday October 16, 2019 1:45pm - 3:00pm CDT
Main Auditorium

3:00pm CDT

Break
Wednesday October 16, 2019 3:00pm - 3:30pm CDT
Foyer

3:00pm CDT

FPA® Cocktails in the Exhibit Hall
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 3:00pm - 7:00pm CDT
Exhibit Hall B

3:15pm CDT

FPA® Quick Start: Are You Setting the Stage for Team Member Ghosting?
For more details, visit the FPA® Full Schedule.

We know the importance of properly on-boarding new clients to our business so they can experience our value proposition and have clear service expectations! It's just as important to properly on-board new team members so that they are not primed to leave you on the first day/week/month/year of employment. Today’s workforce has different expectations that must be met or you will have a revolving door of staff. In this interactive 30-minute quick start session, two industry experts will help you and your peers share best practices in delivering an on-boarding process that drives long-term talent retention and fosters employee engagement.

Learning Objectives:
  • Focus on an often overlooked element of team member engagement that leads to employee advocacy.
  • Develop a plan for onboarding future employees to foster long term success.
  • Interact with peers to find practice management solutions for developing their employees.

Speakers
KS

Krista Sheets, CPBA, CPMA, Certified DISC and Motivators Navigator

President, Performance Insights, Inc. | Paragon Resources, Inc. | MapMyStrengths.com
SE

Sarah E. Dale, Certified Generations Professional DISC U Motivators Navigator certified

Partner | President & Founder, Performance Insights, Inc. | Know No Bounds, LLC


Wednesday October 16, 2019 3:15pm - 3:45pm CDT
101 HIJ

3:15pm CDT

FPA® Quick Start: Reverse Mortgage in a Comprehensive Financial Plan [CFP CE]
For more details, visit the FPA® Full Schedule.

This session will examine case studies of using a reverse mortgage to manage risks to asset longevity such as poor sequence of returns, long-term care and other unexpected expenses. We will also review how income tax-free proceeds can improve household cash flow, be used to delay Social Security benefits or qualified distributions, and help insure a successful retirement income plan.

Learning Objectives:
  • Recognize scenarios that bring risk to asset deterioration and/or reduce longevity of an existing retirement plan
  • Explain how home equity can be leveraged to offset risks, while also further strengthening financial positions amidst life events

Presenters
SR

Steve Resch

Vice President Retirement Strategies Division, Finance of America Reverse


Wednesday October 16, 2019 3:15pm - 3:45pm CDT
M100 ABCDE

3:30pm CDT

FPA® Academic Research Presentations (JFP/AFS), Part 2 [CFP CE]
For more details, visit the FPA® Full Schedule.
  1. A Positive Psychology Intervention for Happiness, Financial Satisfaction, and Financial Self-Efficacy
    Author(s): Sarah D. Asebedo, Martin C. Seay, Shane Enete, and Blake Gray
  2. Aging and Loneliness How Can Financial Advisers Help?
    Author(s:) Philip Gibson, Yuanshan Cheng, Tao Guo, and Janine Scott
  3. Asset Location with Annuities
    Author(s): David Blanchett, Michael Finke

Wednesday October 16, 2019 3:30pm - 4:30pm CDT
205 AB

3:30pm CDT

FPA® Educational Breakout Sessions | Block 2a: Evaluating the Costs and Benefits of ESG Investing [CFP CE]
For more details, visit the FPA® Full Schedule.

Investment products advertising an environmental, social and governance (ESG) or socially responsible investment (SRI) mandate have attracted a flood of assets over the last several years. ESG/SRI investing offers the promise to “do good and do well.” In this discussion-based session, Robert Huebscher and William Droms will present both sides of the argument, focusing on whether that promise has been and can be fulfilled, and what guidance advisors should offer to their clients with respect to ESG/SRI investing.

Learning Objectives:
  • Compare the performance records of ESG/SRI funds in the proper context.
  • Assess whether ESG/SRI funds have and are likely to fulfill their stated mandates.
  • Determine whether ESG/SRI investing is appropriate for individual clients.

Speakers
RH

Robert Huebscher

CEO, Advisor Perspectives, Inc.
WD

William Droms, CFA

Powers Professor of Finance Emeritus, Georgetown University


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
101 DEFG

3:30pm CDT

FPA® Educational Breakout Sessions | Block 2a: Reaching the Aging Baby Boomer: Making The Transition from Financial Planning to Longevity Planning [CFP CE]
For more details, visit the FPA® Full Schedule.

As baby boomers age and experience extended longevity they will be demanding more from their financial planners. This session will focus on the issues and concerns that older adults confront and what financial planners must know in order to address and effectively meet their needs. Participants will understand the necessity of offering longevity planning, including long term care and legacy planning as well as inter-generational communication and preparation for end of life decisions.

Learning Objectives:
  • Describe the primary issues and conditions facing aging baby boomers that inform the need for longevity planning
  • Create structure for positive communication in order to facilitate positive interactions in an inter-generational family meeting
  • Develop plan for longevity based on client needs including end of life decision making

Speakers
RM

Robert Mauterstock, Jr., CFP®, CLU, ChFC, CLTC

Partner and Cofounder, Plan4life, LLC


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
200 ABCDE

3:30pm CDT

FPA® Educational Breakout Sessions | Block 2a: The 60/40 Portfolio is Dead: How MPT Fails Investors In or Near Retirement [CFP CE]
For more details, visit the FPA® Full Schedule.

How will financial planners navigate the dual dilemma of low yields and highly valued equity markets when planning for their clients' successful retirements? Investors who are in the retirement corridor are living longer than ever before, and can’t afford a major portfolio draw down while needing to generate sustainable levels of income to support their retirement lifestyle needs. This session will examine whether Modern Portfolio Theory has lived up to the planners and their clients’ expectations particularly in regards to best practices and serving clients' interests as fiduciaries.

Learning Objectives:
  • Assess a client's existing portfolio allocation in the context of current investment landscape to develop long-term financial plans that meet the needs and objectives of their clients
  • Explain the challenges a low-yield environment presents to a long-term financial plans, retirement income and cash flow needs, and portfolio resilience
  • Describe alternative portfolio construction strategies to de-risk portfolios while limiting exposure to bonds (duration risk)

Presenters
GW

Gib Watson, III, CIMA

Chief Strategy Officer, Swan Global Investments


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
101 ABC

3:30pm CDT

FPA® Public Policy & Regulation Knowledge Circle
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 3:30pm - 4:30pm CDT
102 A

3:30pm CDT

G1a Fundamental Analysis versus Technical Analysis: Which Matters More?
Whether fundamental analysis or technical analysis should be employed to predict stock returns is a longstanding debate in the literature. Incorporating a regime-switching mechanism, we establish a hybrid model with non-uniform weightings on each type of analysis to examine the debate. Our empirical results are consistent with the following notions. First, stock investors should give more weight to fundamental analysis for firms with incremental information involved in accounting reporting. Second, stock investors care more about the intrinsic value of firms obtained with fundamental analysis when encountering information asymmetry or uncertainty. Third, the weight given to fundamental analysis should be increased for stocks with unusual volatility in prices. However, when the market is crashing, fundamental analysis might become invalid, and thus the weighting given to fundamental analysis should be decreased. For technical analysis, the reverse of these arguments holds true. The results are robust to alternative measures of the variables.

Author(s): Leon Li

Presenters
LL

Leon Li

Associate Professor of Finance and Subject Convenor, Finance, University of Waikato


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
201 A

3:30pm CDT

G1b The Complex Gets More So; Another Variable of Interest for Equity Index Annuities
An anniversary date of a contract’s initiation determines the valuation for investment opportunities such as equity indexed annuities and a variety of structured investment products. Using the S&P 500 daily returns from 1950 to 2018 as the underlying index, this paper analyzes anniversary-date-based differences in returns for these types of investment products. Along the lines of the many documented calendar-based market anomalies, we find that non-trivial differences in returns can exist for contracts initiated mere days apart. These differences exhibit seasonality and do not appear driven by a particular sub-period of the almost seven-decade sample we investigate.

Author(s): Steve Fraser, Brian Payne

Presenters
SF

Steve Fraser

Associate Professor, Florida Gulf Coast University


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
201 A

3:30pm CDT

G2a Automated Portfolio Rebalancing: Automatic Erosion of Investment Performance?
Robo-advisers enable investors to establish an automated rebalancing-strategy for a portfolio usually consisting of stocks and bonds. Since households’ portfolios additionally include further frequently tradable assets like real estate funds, articles of great value, and cash(-equivalents), we analyze whether households would benefit from a service that automatically rebalances a portfolio which additionally includes the latter assets. In contrast to previous studies, this paper relies on real-world household portfolios which are derived from the German central bank’s (Deutsche Bundesbank) Panel on Household Finances (PHF)-Survey. We compute the portfolio performance increase/decrease that households would have achieved by employing rebalancing strategies instead of a buy-and-hold strategy in the period from September 2010 to July 2015. The empirical analysis shows that the analyzed German households would not have benefited from an automated rebalancing service and that no subgroup of households would have significantly outperformed another subgroup in the presence of rebalancing strategies.

Author(s): Matthias Horn, Andreas Oehler

Presenters
MH

Matthias Horn

Employee, Bamberg University


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
201 B

3:30pm CDT

G2b The Alpha and Omega of Financial Risk-Tolerance Assessment
The assessment of financial risk tolerance is a topic of great interest in the financial services profession. Numerous scales and techniques have been developed to facilitate the measurement of risk attitudes. Cronbach’s alpha has traditionally been used as a measure of scale reliability.  Over the past decade, however, psychometricians have published concerns about the ongoing use of Cronbach’s alpha as a robust measure of scale reliability. In its place, some have argued that reliability estimates should be based on Greatest Lower Bound and omega. The purpose of this paper is to describe these alternative reliability measures, in comparison to Cronbach’s alpha, for a widely used financial risk-tolerance scale. Using a large dataset with 179,450 observations, findings from this study suggest that while estimates derived on the basis of Cronbach’s alpha, the GLB, and omega differ, for the most part, reliability estimates across the measures are close.

Author(s): Wookjae Heo, John E. Grable, Michael Roszkowski, Abed Rabbani

Presenters
avatar for Wookjae Heo

Wookjae Heo

Assistant Professor, South Dakota State Universiy


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
201 B

3:30pm CDT

G3b Work-Life Balance and Burnout Among Women in Financial Planning
This study intends to compare the work-life balance related inventory of women in financial planning with that of men in the profession, and also among subgroups of women based on household responsibilities and size of the financial planning firm. This study hopes to find explanations for the lack of gender diversity in the financial planning industry and test the strengths and weaknesses of the profession for increasing the participation of women in the future.

Author(s): Aman Sunder, Cindy Riecke, Jennifer Lehman, Rebecca Henderson

Presenters
avatar for Jennifer Lehman

Jennifer Lehman

Assistant Professor, George Fox University
I received my PhD in personal financial planning at Texas Tech University and am currently enjoying my one year appointment at the University of Utah. Current research is on diversity issues in charitable planning. I have JD and MPA degrees from UNC-Chapel Hill. I love road trips... Read More →


Wednesday October 16, 2019 3:30pm - 4:30pm CDT
202 AB

4:00pm CDT

FPA® Quick Start: Public Markets, Real Estate & the Healthcare Sector
For more details, visit the FPA® Full Schedule.

Ten thousand people in the US are turning sixty-five daily. Explore the drivers of economic growth in the healthcare sector, as well as, the market dynamics in medical real estate including cap rates, high growth markets, buyers and on/off campus facilities. What are the benefits and drawbacks of various asset classes in this sector? Should you rely on an external or in-house operators/asset managers?

Presenters
CC

Caroline Chiodo, CFA

Senior Vice President-Acquisitions & Development, Healthcare Trust of America, Inc


Wednesday October 16, 2019 4:00pm - 4:30pm CDT
M100 ABCDE

4:00pm CDT

FPA® Educational Breakout Sessions | Block 2b: NexGen Mini Talks: Raising the Bar for the Financial Planning Profession
For more details, visit the FPA® Full Schedule.

The future of the profession depends on the financial planning community working together to face the challenges of the marketplace. These short, impactful sessions deliver thought leadership from the next generation of professionals on how all planners can work together to manage stronger teams, create better tools, and ask challenging questions that raise the bar of financial planning.
  1. How to Put A CFP® in Every Home
  2. Managing Associates through Better Understanding
  3. Are We Asking the Right Questions? 

Wednesday October 16, 2019 4:00pm - 5:00pm CDT
101 HIJ

4:00pm CDT

FPA® Educational Breakout Sessions | Block 2b: What Does Independence Really Mean: Defining your Strategy in a Changing Market
For more details, visit the FPA® Full Schedule.

Independence is a powerful idea, and has led to rapid growth of a powerful business model to serve clients. But, the definition of independence is changing. In this session, learn about three growing forces challenging the long range viability of the independent adviser business and the key questions needed to answer in business planning. Financial planners will leave this session with some ideas on how to prepare for a future that is unfolding in this independent space and apply these ideas to a unique strategy to call their own.

Presenters
SS

Scott Slater

Vice President, Practice Management & Consulting for Fidelity Clearing & Custody


Wednesday October 16, 2019 4:00pm - 5:00pm CDT
200 FGHIJ

4:30pm CDT

Break
Wednesday October 16, 2019 4:30pm - 4:45pm CDT
N/A

4:45pm CDT

FPA® Quick Start: Changes to the Bloomberg Barclays U.S. Aggregate Index [CFP CE]
For more details, visit the FPA® Full Schedule.

The world and financial markets have changed dramatically since the financial crisis. One area of change that investors may not have considered is the composition of the universal benchmark for investment grade fixed income, the Bloomberg Barclays U.S. Aggregate Index. As government issuance and corporate issuance have grown at an unprecedented pace, the impacts to the Index and the implications for investors must be considered. During this presentation, we’ll review the changes in the composition to the Index and the potential impact to investors.

Learning Objectives:
  • Describe changes to the Bloomberg Barclays U.S. Aggregate Index since the Financial Crisis
  • Identify and discuss in detail how the changes to the Index impact investors and the overall market
  • Explain the opportunities that have arisen in the fixed income markets due to the ongoing changes to the Index

Presenters
DG

Douglas Gimple

Senior Portfolio Specialist, Diamond Hill Capital Management


Wednesday October 16, 2019 4:45pm - 5:15pm CDT
M100 ABCDE

4:45pm CDT

FPA® Academic Research Presentations (JFP/AFS), Part 3 [CFP CE]
For more details, visit the FPA® Full Schedule.
  1. New Lessons About 529s What’s Left on the Table
    Author(s): Steve Wendel, Michael Leung
  2. The Gender Pay Gap Among Financial Planners
    Author(s): Derek Tharp, Meghaan Lurtz, Katherine S. Mielitz, Michael Kitces, D. Allen Ammerman
  3. Tax Savings for a Charitable Taxpayer
    Author(s): Greg Geisler 

Wednesday October 16, 2019 4:45pm - 5:45pm CDT
205 AB

4:45pm CDT

FPA® Educational Breakout Sessions | Block 3a: Building an Inclusive Culture for Growing Businesses
For more details visit the FPA® Full Schedule.

Panel Moderator(s):
Kristen Prewitt, CFP®, CRPC®, CLTC®
Panel Member(s):
Charles Adi, CFP®
Marina Shtyrkov

In today's environment, it is necessary to update the lens through which we plan for growth in the financial planning industry. During this panel, we will review various engagement strategies to assist firms that strive to form an inclusive culture.
This panel will discuss attracting and engaging diverse planners, structuring the client experience to attract diverse clients and utilizing a network and strategic partnerships to overcome growth challenges.

Wednesday October 16, 2019 4:45pm - 5:45pm CDT
101 DEFG

4:45pm CDT

FPA® Educational Breakout Sessions | Block 3a: Crisis of Confidence: how to overcome the mindsets and methods keeping you from delivering massive value, building a $1m+ practice and taking 100+ days off a year.
For more details, visit the FPA® Full Schedule.

This “tell-it-like-it-is “session will challenge your beliefs about success, reveal how to build a $1M+ practice with 100+ days off per year, and share how “Crisis of Confidence” keeps advisors from successfully telling their story, selling their services, charging for value, working with the clients they enjoy and scaling their success while building a life that they love.

With keen insights from her own success and 20 years coaching top advisors, Stephanie shares the secrets of achieving your own version of high-performance happiness.

Warning: attending this session spark radical shifts, rapid growth, and lead you to greater success and happiness.

Learning Objectives:
  • Recognize key belief systems and business strategies needed to take your practice to the next level.
  • Understand the 7 mindsets holding advisors back from greater professional success, improved client services and personal satisfaction.
  • Identify specific learnings, strategies and scripts for how to how to better tell your story, charge fees, deliver value to clients, identify target clients, and build a $1M practice that allows you to take 100+ days off per year.

Speakers
SB

Stephanie Bogan

CEO Coach and Business Strategist, Educe, Inc. and Limitless Adviser Coaching Program


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
200 ABCDE

4:45pm CDT

FPA® Educational Breakout Sessions | Block 3a: Optimizing Social Security Benefits is Still Complicated
For more details visit the FPA® Full Schedule.

After discussing Social Security rule changes in November 2015, William Reichenstein presents 10 reasons why it is still complicated to determine when clients should claim their benefits. There are now two sets of rules depending upon date of birth and with the SSA's use of strange dating features, many new retirees have different full retirement ages for retirement and spousal benefits than for survivor benefits. Learn about clients options to redo a prior claiming decision and other complications around claiming strategies for widow(er)s younger than 70, for earnings tests, children’s benefits, divorced benefits, disability benefits, and especially pensions from work not covered by Social Security.

Learning Objectives:
  • Describe recent rule changes and strategies related to Social Security changes specifically new rules around date of birth.
  • Explain the rules affecting and claiming strategies related to earnings tests, children’s benefits, divorced benefits, disability benefits, and survivor benefits.
  • Define how the WEP and GPO affect benefits for clients that receive a pension from a job not covered by Social Security and their spouses.

Speakers
WR

William Reichenstein, PhD, CFA

Head of Research, Social Security Solutions, Inc. and Reitree, Inc.


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
101 ABC

4:45pm CDT

FPA® Tax and Estate Planning Knowledge Circle
For more details, visit the FPA® Full Schedule.

Wednesday October 16, 2019 4:45pm - 5:45pm CDT
102 A

4:45pm CDT

H1a Life Insurance Ownership – A Perspective from Relationship Quality
Life insurance is commonly used to protect future human capital earnings. Factors related to life insurance ownership is well studied in the literature. Liebenberg, Carson, and Dumm (2012) provided a thorough summary of the variables used in the literature. Using the Health and Retirement Study (HRS) leave behind survey, this study is the first to add behavioral factors, to our knowledge, of spousal relationship as a measurement factor regarding life insurance ownership. For the same reason, this study focuses on life insurance ownership with the spouse as the beneficiary. The results suggest that the quality of relationship quality with the spouse is a strong and dominating factor of life insurance ownership. In other words, most individuals are motivated to protect the spouse from potential premature death. The impact of spousal relationship quality is much larger than traditionally explored objective factors.

Author(s): Janine Sam, Yuanshan Cheng, Philip Gibson, Tao Guo

Presenters
avatar for Janine Sam

Janine Sam

Assistant Professor, Shepherd University
As an early career researcher and academic, I am engaged with current financial planning issues that are relevant and applicable to both consumers and financial planning practitioners. I oversee the Financial Planning program at Shepherd University, and I am currently teaching Risk... Read More →


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
201 A

4:45pm CDT

H1b What Are the Determinants of Purchasing Life Insurance Among Older Americans?
In personal financial planning, life insurance is used as a tool to hedge against a potential loss of income to surviving household members in the event of a breadwinner’s death. However, there are other uses for life insurance including the payment of a debt, the payment of taxes and other expenses associated with transferring wealth, the continuation of a business plan. In addition to their sophisticated structures, life insurance products have high premium costs than other insurance products and are associated with the unpleasant event of death. Researchers focus on the factors driving the demand for life insurance. This study examines the determinants of purchasing life insurance by considering a larger number of factors (e.g. three measures of leaving a bequest), using most recent waves of the RAND HRS panel data, and estimating a fixed-effects logit model.

Author(s): Hossein Salehi, Charlene Kalenkoski

Presenters
avatar for Hossein Salehi

Hossein Salehi

Assistant Professor of Finance and Financial Planning, California Lutheran University


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
201 A

4:45pm CDT

H2b The Role of Risk Tolerance As a Mediator Between Family Income and Smoking and Drinking Behavior
Risk tolerance may act as an important role in shaping health sensation-seeking behaviors (i.e., smoking and drinking). When risk tolerance (in the seven domains: driving, finance, occupation, health, faith, relationship, and life change) is included in regression models for the relationship between family income and smoking/drinking behavior, as a partial mediator, the income effect was changed. This result means that risk tolerance mediates the income effect on smoking/drinking behavior. When viewed this way, risk tolerance may be more important than income in relation to sensation-seeking behavior. It is possible that risk tolerance may also be the pathway to help the client decrease in smoking/drinking activities. This change should result in improved financial situations as well as their health problem by reducing the cost of alcohol and tobacco use.  

Author(s): Eunjin Kwak, John Grable

Presenters
EK

EJ Kwak

PhD student, University of Georgia


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
201 B

4:45pm CDT

H3a Radicalization of Financial Literacy
Our research is designed to examine over 100 financial literacy programs throughout the country and address key program features, main program objectives, efficacy of program heuristics, provider follow-up with program participants, and general program success in meeting stated objectives.

Author(s): Steven Syrmopoulos, Angela Roe

Presenters
SS

Steven Syrmopoulos

Finance Instructor, Northern Arizona University


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
202 AB

4:45pm CDT

H3b The Financial Behavior of Leisure Vehicle Owners
This study investigates the financial behavior of individuals that own campers, boats, motorcycles, snowmobiles, personal aircraft, and other powersports vehicles.  Because of the extraordinary expense associated with buying, maintaining, and operating these leisure vehicles, owners must be extremely diligent in planning in order to meet financial goals and exhibit good financial behaviors.  The study finds that leisure vehicle ownership is associated with increased financial knowledge.  However, leisure vehicle ownership is also associated with increased debt levels, including credit card debt.  While leisure vehicle owners know more about personal finance than their non-leisure vehicle owning counterparts, leisure vehicle owners display worse financial behaviors.  This information provides value to individuals, planners, and policy makers alike.

Author(s): Andrew Scott, Stuart Heckman

Presenters
AS

Andrew Scott

Assistant Professor, Saint Mary's University of Minnesota


Wednesday October 16, 2019 4:45pm - 5:45pm CDT
202 AB

5:15pm CDT

FPA® Educational Breakout Sessions | Block 3b: Career Paths in Financial Planning
For more details, visit the FPA® Full Schedule.

In this session, Marilyn and Mark will discuss the work of the CFP Board Center for Financial Planning to help the profession attract the next generation of financial planning talent. Their specific focus will be on the Center’s newest research “Financial Planning Career Paths: Building More Sustainable and Successful Businesses.” Presenters will offer guidance, drawn from the experience of 30 firms, on establishing career paths that facilitate recruitment, onboarding, training and career development, which are essential to the growth of the profession and success of your firms.

Learning Objectives:
  • Describe the importance of career paths for successful businesses and for the advancement of the profession.
  • Identify the five rungs of the financial planning career path and understand the importance of the service advisor stage and the emergence of teams as a “best practice”.
  • Explain the evolution of client and business development responsibilities for financial planning career paths.

Presenters
MM

Marilyn Mohrman-Gillis, ESQ

Executive Director, CFP Board Center for Financial Planning
MT

Mark Tibergien

Chief Executive Officer, Pershing Advisor Solutions


Wednesday October 16, 2019 5:15pm - 6:15pm CDT
200 FGHIJ

5:15pm CDT

FPA® Educational Breakout Sessions | Block 3b: Investigating the Role of Whole Life Insurance in a Lifetime Financial Plan [CFP CE]
For more details, visit the FPA® Full Schedule.

This presentation goes into greater depth about two retirement income approaches: using an aggressive investment portfolio to seek greater returns through the risk premium, and using an integrated strategy for investments with life insurance and annuities to seek greater returns through risk pooling. My research finds that risk pooling tends to be underappreciated as a unique source of returns that is unavailable for an investment portfolio in which the retiree aims to self-manage longevity and market risk through conservative spending.

Learning Objectives:
  • Differentiating between accumulation and distribution
  • Understanding key retirement risks
  • Surveying the retirement tool landscape with respect to investments and/or insurance

Presenters
WP

Wade Pfau, PhD, CFA

Professor, The American College for Financial Services


Wednesday October 16, 2019 5:15pm - 6:15pm CDT
101 HIJ

5:45pm CDT

AFS Annual Meeting Adjourns
Wednesday October 16, 2019 5:45pm - 5:45pm CDT
N/A