Financial attributes, financial behaviors, financial‐advisor‐use beliefs, and investing characteristics associated with having used a robo‐advisor. Issue 3 (1st February 2021)

• Record Type: Journal Article
• Authors: Todd, Timothy M.; Seay, Martin C.
• Is Part Of: Financial planning review. Volume 3:Issue 3(2020)
• Page Start: n/a
• Page End: n/a
• Publication Date: 2021-02-01
• Subjects: automated investments -- financial planning -- financial technology -- fintech -- household finance -- investments -- robo‐advisors; Financial planning industry -- Periodicals; Finance, Personal -- Periodicals; 332.024
• DOI: 10.1002/cfp2.1104
• Languages: English
• ISSNs: 2573-8615

Abstract

Abstract: This study investigates the financial attributes, financial behaviors, financial‐advisor‐use beliefs, and investing characteristics associated with having used an automated investment solution (i.e., a robo‐advisor). Data are used from the 2015 National Financial Capability Study (both the State‐by‐State Survey and the Investor Survey) to investigate the use of robo‐advisors among 1, 393 individuals with non‐retirement investment accounts. Multivariable results indicated that being younger, having low or midrange income, and having lower objective investment‐knowledge scores was positively associated with robo‐advisor use. This study provides important insight for policymakers, financial practitioners, and proprietors of robo‐advisors and other fintech products.