<abstract>
<title style='display:none'>ABSTRACT</title>
Currently, only one in five Australians seek financial advice. There is significant future growth and potential for increased financial wellness for community, families and individuals through a financial advice relationship.
Leveraging diverse perspectives to reflect and understand clients’ diverse needs and to guard against ‘groupthink’ is critical to achieving this growth potential. Finance organisations are lagging behind in gender diversity in Australia and globally (Workplace Gender Equality Agency, 2017). The Association of Financial Advisers states that of all financial planners in Australia, only one in five financial planners are women, not reflecting the rapidly changing customer base where women control $12 trillion of the $18.4 trillion in consumer discretionary spending (<xref ref-type="bibr" rid="j_fprj-2018-0005_ref_066">International Herald Tribune, 2012</xref>).
With the recent move to professionalism for the industry, now is a point of agitation to redefine inclusive pathways in and through financial planning. Intentionally disrupting the current subtle and not-so-subtle business processes that perpetuate gender inequity requires a disruptive approach to the current practices of many Australian organisations. An Inclusion and Diversity audit assesses the current state of bias in structural, cultural, interpersonal and personal dimensions. Fundamental to bold pragmatic action to accelerate gender parity is an understanding of where bias occurs, measuring its progress, and a leadership focus to disrupt it.
</abstract>

Bias Interrupters—Intentionally Disrupting the Status Quo to Create Inclusive and Well Workplaces

<abstract>
<title style='display:none'>ABSTRACT</title>
Advice provided by financial planners has the potential to impact the financial and emotional well-being of clients and is particularly important in a world struggling to deal with COVID-19. Despite the outcomes of quality financial planning relationships, there is little direct evidence to support the importance of technology in the financial planning setting, Previous research has emphasised the importance of technology in other fields, although not in relation to financial planning. This research investigates the impact of technology on financial advice value, measured in a survey of clients and financial planners regarding factors of technology, communication, trust, and investment returns. A questionnaire was developed based on previously validated scales. Ratings for the factors were compared between clients and financial planners, with financial planners found to underestimate their client’s confidence in their process, and also underestimate the importance of communication to clients, The results indicate that clients value investment returns above the financial planning relationship, and that financial planners value the relationship above investment returns, This research contributes to the financial planning and technology literature, provides a foundation for future research, and provides support for the importance of communication and technology in professional relationships such as in financial planning.
</abstract>

Technology will Save Financial Advice

<abstract>
<title style='display:none'>ABSTRACT</title>
Underinsurance and low financial literacy have been shown to be key issues impacting the effectiveness of personal financial management. Both issues are made more important by the complex financial system, an ever moving array of financial products and services, and the progressive move towards self-reliance in retirement. These factors suggest a greater degree of financial independence and more effective financial decision-making is required over the long-term, both of which may be undermined by low financial literacy and underinsurance. Little is known, however, about the impact of financial illiteracy on the propensity to seek and retain insurance.
Using an interview methodology, we obtained the views of informed and non-informed participants to examine insurance literacy in Australia. We find evidence that insurance literacy of consumers is generally low and exacerbated by factors such as low product knowledge, low trust of providers, low awareness of risk mitigation strategies, and behavioural decision-making biases. These factors can culminate in a perception of low value and subsequent underinsurance. Furthermore, this appears to be more acute for personal insurances as opposed to general insurances.
</abstract>

Insurance Literacy in Australia: Not Knowing the Value of Personal Insurance

<abstract>
<title style='display:none'>ABSTRACT</title>
Due to an ageing population, encouraging self-funded retirement has been a key goal of Australian government policy for the last three decades. However, the current model of superannuation—funded primarily by the Superannuation Guarantee (SG)—leaves significant segments of the Australian population at a disadvantage. These segments include groups of individuals who do not participate in the paid workforce due to their performance of non-paid work. This research paper examines the disadvantage experienced by female primary carers in Australia under the current model of superannuation.
The body of literature on superannuation has identified that a significant proportion of working age women take time out of the workforce to provide care and receive a minimal amount of assistance from the government and that this has a detrimental effect on their retirement outcomes. However, this paper identifies a gap in the existing literature as it does not consider the financial consequences in retirement for women who must care for their parents. In particular, this paper identifies the disadvantage experienced by those women who simultaneously, or sequentially, ‘sandwich’ caring for their parents with raising children.
</abstract>

Retirement Outcomes for Female Primary Carers in Australia: A Literature Review

<abstract>
<title style='display:none'>ABSTRACT</title>
In a competitive job market, a traditional university qualification that delivers technical knowledge, in itself, does not guarantee graduate employment (<xref ref-type="bibr" rid="j_fprj-2019-0004_ref_010">Crebert, <italic>et al.</italic> 2004</xref>). This study sought to determine which personal characteristics, skills and attributes lead to successful employment after graduating from financial planning degrees across Australian financial institutions. We find that education providers can do more to develop a number of skills, including interpersonal communication, negotiating, marketing and being a team player, and that there may be gender differences in role preferences and pathways into a financial planning career. This study found that both students and employers are seeking more professional awareness throughout financial planning degree programs including learning outcomes regarding interpersonal communication, teamwork and leadership, analytical skills, presentation skills, enterprising skills such as developing business plans and marketing, as well as more mentoring programs and internships to develop more generic skills in graduates to help meet employers’ high expectations. This study also suggests that students’ work expectations could be better managed regarding entry pathway options, but also presents an optimistic outlook for existing students preparing for a career in financial planning.
</abstract>

Career Outcomes of Financial Planning Students

<abstract>
<title style='display:none'>ABSTRACT</title>
Published empirical research (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_096">McInnes 2020</xref>) proves licensing financial advisers through multiple profit-driven Australian Financial Services licensees contributes to conflicts of interest by association. Government’s response is to regulate advisers by adopting a single disciplinary body (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_066">Frydenberg &amp; Hume 2019</xref>) to professionalise advisers like established professions. This paper supports Government’s move to implement this body (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_156">Taylor 2020c</xref>; <xref ref-type="bibr" rid="j_fprj-2020-0003_ref_092">Maddock 2020</xref>), albeit delayed by COVID-19 (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_154">Taylor 2020a</xref>), by using the evidence published in a Routledge book (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_096">McInnes 2020</xref>). It aims to motivate advisers to work with policymakers to reshape financial advice into a true, accredited profession to address the problem of conflicted association, to make advice accessible (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_093">Marsh &amp; Phillips 2019</xref>) and conflict free, while also dismantling costly compliance legislation (<xref ref-type="bibr" rid="j_fprj-2020-0003_ref_147">Smith &amp; Sharpe 2020</xref>).
</abstract>

The Australian Government is Justified in Establishing a Single Disciplinary Body

<abstract>
<title style='display:none'>ABSTRACT</title>
Research has shown that investment success is largely driven by asset allocation. With the dramatic growth in number of exchange-traded funds (ETFs), individual investors have gained access to a wicie variety of funds including funds representing non-traditional asset classes, This proliferation of ETFs allows investors to take advantage of high return alternatives while maintaining an asset allocation that is well diversified. This paper explores the potential for creating effcient portfolios using ETFs exclusively. We use price data from 2007 to 2017 for thirty-four ETFs to demonstrate that a portfolio of ETFs based on an average optimal weight allocation has a higher Sharpe ratio than 85 percent of the ETFs studied. Constructing effcient portfolios based on the average of optimized weights improves this portfolio’s returns by 370 basis points and increases the Sharpe ratio significantly as compared with ex ante mean-variance optimization. We conclude that investors can benefit from using average optimized weights in building portfolios made up primarily of ETFs.
</abstract>

Efficient Asset Allocation for Individual Investors in the ETF World

<abstract>
<title style='display:none'>ABSTRACT</title>
This study presents a conceptual model to examine the factors influencing career choice in financial planning. Informed by career choice theory, the study uses questionnaires and interviews of financial advisers and financial planning students in Australia to find that social learning through life experiences, along with the enjoyment of working with numbers and aspiration to help others are important factors influencing the choice to pursue a career in financial planning. In addition, respondents scored highest on the agreeableness scale of the ‘Big Five’ personality test.
Contrary to popular media reports, results show that people choose financial planning as a career primarily because they want to help people. Findings also highlight the uniqueness of financial planning as a career that fulfils both agentic and communal goals which allows advisers to use their interest in numbers to help people. The study makes a valuable practical contribution to the development of financial planning by providing insights that may prove useful in recruiting the next generation of financial advisers. Our findings also have important implications for educators, regulators, and the profession more broadly. Further, it makes a theoretical contribution by providing a conceptual framework to aid in understanding the factors relevant to career choice, particularly in an emerging discipline such as financial planning where information on career choice is limited.
</abstract>

Factors Influencing the Motivation to Pursue a Career in Financial Planning<xref ref-type="fn" rid="j_fprj-2022-0003_fn_001">*</xref>

<abstract>
<title style='display:none'>ABSTRACT</title>
We investigate the effect of personal budget management services provided by a financial institution on undesirable debts of 4,256 individuals and families over a period of one year using objective budget data spanning three years. Results from this study using an Australian dataset show that the majority of the participants reduced their debt repayments and debt repayment to income ratio over a period of one year, Our results also show that the majority of the participants hod an increase in funds available for living expenses and savings.
</abstract>

Can Personal Budget Management Services Improve Debt Repayments? A Study Using Budget Data<xref ref-type="fn" rid="j_fprj-2022-0001_fn_001">*</xref>

<abstract>
<title style='display:none'>ABSTRACT</title>
This study examines the association between retiree financial planning horizon and retirement satisfaction using longitudinal data collected from the Health and Retirement Study. The results indicate that retirees with long-term financial planning horizons, compared to retirees with short-term financial planning horizons, are more likely to be satisfied with their retirement. The findings and ensuing discussion highlight the need for long-term financial planning during retirement and the need for financial planners to regularly engage in financial planning throughout their clients’ retirement.
</abstract>

Retirees, Financial Planning Horizon, and Retirement Satisfaction

<abstract>
<title style='display:none'>ABSTRACT</title>
Canadians benefit from a robust government pension system that is designed to alleviate poverty. Concerns remain that Canadians are not saving enough for retirement. This study examines whether expected reliance on Canada’s government pension system is associated with non-retired Canadians’ engagement with retirement saving behaviour. Controlling for a variety of demographic and socioeconomic factors, this study supports the hypotheses that Canadians who expect to rely on government pensions are less likely to save and/or calculate retirement needs. This may contribute to retirement shortfalls. Implications for policymakers, practitioners, and researchers are discussed.
</abstract>

Canadian Retirement Planning Behavior: How Reliance on a Government Pension Relates to Pre-Retirement Savings and Planning Behaviours

<abstract>
<title style='display:none'>ABSTRACT</title>
Our study investigates the usage of Buy Now Pay Later (BNPL) of young Australian adults (aged 18-25, n=308). We found females used BNPL instead of saving. Females exhibited a higher BNPL debt, but were less concerned about that debt compared with males. Self-reported financial literacy training was lower for females compared with males. Negative financial behaviours of both females and males, e.g. binge spending, were inconsistent with their long-term financial goals. We recommend that the relevance and effectiveness of financial literacy training for young adults addresses gender-specific BNPL behaviours and includes education on the psychology of overspending.
</abstract>

Spend and Repeat! Young Adult’s Experiences with Buy Now Pay Later Services

<abstract>
<title style='display:none'>ABSTRACT</title>
The majority of Australian farms are ‘family farms’, that is, those that are owned and operated by members of a nuclear or extended family. An important key to the continuation of family farming is the smooth succession by subsequent generations. Increasingly, financial planners are becoming involved in succession issues including those involving farming families.
We examine the current status of succession planning in Australian farming through a survey of farming family members. While the majority of survey respondents considered that maintaining family harmony was their first priority, a significant proportion have no succession plan. Importantly for financial advisors, employing professionals with appropriate skills in estate planning is rarely done.
</abstract>

Current Practices in Australian Farm Succession Planning: Surveying the Issues<xref ref-type="fn" rid="j_fprj-2017-0004_fn_001">^</xref>

<abstract>
<title style='display:none'>ABSTRACT</title>
Learning about effective ways to manage money is a 21st century skill and the focus of financial literacy education (FLE) initiatives globally. Individuals deemed to have lower levels of financial literacy are often the targets of financial literacy workshops/programs. In this research paper the key outcomes are identified from a qualitative study that explored the FLE practices <italic>with</italic> an Aboriginal community in Canada (that the author is a member of). This includes conceptualising what influences financial decision-making and the role of culture and context in financial literacy education <italic>with</italic> a Community instead of <italic>for</italic> a Community. Discussed is the importance of adopting a <italic>praxis approach to FLE</italic> and integrating <italic>site based education development with</italic> Community members instead of imposing education <italic>on</italic> individuals. Last, outlined in this paper is how the above findings may offer insights for financial educators and/or planners participating in financial literacy education and engaging <italic>with</italic> Aboriginal clients.
</abstract>

Financial Literacy Education <italic>with</italic> Aboriginal People: The Importance of Culture and Context

<abstract>
<title style='display:none'>ABSTRACT</title>
This Australian study utilises quantitative and qualitative research 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.
</abstract>

Characteristics of Trust in Personal Financial Planning<xref ref-type="bibr" rid="j_fprj-2016-0001_fn_001">*</xref>

<abstract>
<title style='display:none'>ABSTRACT</title>
The Australian financial services industry has been a leader in offering flexible work policies, positioning them as a solution to the tensions between women’s dual work and family roles. While Australian legislation provides the right to request flexible work, this study uncovers how, in one finance organisation, flexible work is framed as an employee benefit within a suite of benefits. The study shows that employees using flexible work arrangements are less likely to understand and know how to access the full range of benefits, many of which have short- and longterm financial implications. This has consequences for the long-term financial security of women (as the heaviest users of flexible work arrangements) and for financial planners, both as employees of organisations in the Australian finance industry and as providers of advice to women working in this sector.
</abstract>

Flexible Work: Barrier to Benefits?

<abstract>
<title style='display:none'>ABSTRACT</title>
Old age can be associated with declining cognitive abilities and the development of Alzheimer’s disease and dementia. These conditions generally result in a reduced ability to make sound financial decisions, that is, a reduced financial capacity. This reduction is an important issue for financial planners, but reduced financial capacity is often difficult to detect. Moreover, severe legal consequences can result for financial planners who provide what is later deemed to be inappropriate financial advice to clients with these conditions. Consequently, this article aims to help financial planners understand this condition and the actions to take when it is detected.
</abstract>

Challenges Facing Financial Planners Advising Ageing Clients with Diminished Financial Capacity

Ethics and Malpractice Statement

Instructions for Authors

Financial Planning Research Journal

The official journal of the Financial Advice Association Australia

The Financial Planning Research Journal (FPRJ) is a peer-reviewed open-access journal that publishes original, applied, and topical research articles to aid understanding of the practice...

The Financial Planning Research Journal (FPRJ) is a peer-reviewed open-access journal that publishes original, applied, and topical research...

Financial Planning Research Journal

The official journal of the Financial Advice Association Australia

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