Individuals can be over-confident or under-confident in many of their abilities, this is especially true in regards to confidence in their own financial knowledge. It would be beneficial to identify which types of individuals need guidance with short- and long-term goal-setting, so that financial counselors and planners would be able to better assist them with their future financial plans. We find naïve individuals are the worst at setting long-term goals and competent individuals are the best at setting long-term goals. Over-confident individuals are the worst at short-term goal-setting, while under-confident and naïve individuals are the best at setting short-term goals.

CFP Pre-Approved Session - 1 CEU