Wednesday, November 14th, 2018
The Big Five Personality Traits and Financial Risk Tolerance of Pre-Retiree Baby Boomers
Financial Risk tolerance is an important concept for a financial planner to recommend financial products. As the baby boomer generation approaches retirement, research to determine how these individuals perceive financial risk tolerance has grown exponentially. The present study tries to determine the relationship between financial risk tolerance and the Big-5 personality traits, such as extraversion, emotional stability, openness to experiences, agreeableness, and conscientiousness of the baby boomers. It finds that baby boomers with a higher degree of extraversion, emotional stability, and openness to experiences are more risk tolerant, while those with a higher degree of agreeableness and conscientiousness score have lower risk tolerance.