Sung & Hanna, 1998, Financial Counseling and Planning


 Sung, J.
& Hanna, S. (1998). The spouse effect on participation and investment
decisions for retirement funds  Financial Counseling and Planning,
9(2), 47-58.


The Spouse Effect On Participation And

Investment Decisions For Retirement Funds

Jaimie Sung(1) and
Sherman Hanna(2)


Worker decisions on retirement
account participation and their investment choices for retirement accounts
play an important role in post-retirement income. The interaction between
the decisions of husbands and wives was investigated by using a bivariate
probit model with a spouse effect. There were a positive spouse effects
on the two decisions in households where both spouses were working. When
marital status and working status were controlled, no significant gender
difference in the decisions was found. Risk tolerance and the expected
time horizon until retirement are important factors in the investment decision
as expected.


Key Words: Stock investments,
Retirement planning, Risk tolerance, Survey of Consumer Finances
,
Gender
differences

1. Jaimie Sung, Postdoctoral Associate,
Community Development and Applied Economics Department, University of Vermont,
205d Morrill Hall, Burlington, VT 05405, Phone: (802) 656-4565. Email:
jsung@zoo.uvm.edu

2. Sherman
Hanna, Professor, Consumer Sciences Department, The Ohio State
University, 1787 Neil Ave., Columbus, OH 43210-1295. Phone: (614) 292-4584.
Fax: (614) 292-7536. E-mail: hanna.1@osu.edu



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