The Journal of Financial Planning's Research Showcase - Part 1

Title: Did Crypto Make Young Investors Overconfident?
Author: Brianne Smith

Description: This proposal explores the impact of cryptocurrency investments on the overconfidence of young investors. It investigates whether experiencing significant gains in the crypto market contributes to higher levels of overconfidence among younger individuals, leading to potential inaccuracies in their investment abilities assessment.

Learning Objectives:
1. Understand the relationship between investment experience, confidence, and overconfidence among young investors.
2. Recognize the potential impact of extreme market gains, such as those observed in the cryptocurrency market, on shaping investors' beliefs and risk-taking behavior.

Title: The Age of Influencers: Risks for Consumers and Opportunities for Planners
Author: Brian Walsh

Description: This session will examine how financial planners can use social media to expand their reach, influence financial behavior, and help protect consumers by reducing the ability for unqualified influencers to take advantage of less knowledgeable and more gullible individuals.

Learning Objectives:
1. Describe the influence of social media on consumers’ financial decisions based on their age, income, financial knowledge, and gullibility.
2. Determine which topics and social media platforms are most likely to reach consumers and affect their financial decisions.
3. Explain the importance of companies and regulators adopting common-sense reforms related to social media use by financial planners that encourage adoption to offset the impact of unqualified influencers.

Title: A Simplified Approach to After-Tax Portfolio Selection
Author: Rex Macey

Description: The availability of scenario returns from sources like BlackRock enable planners to jettison MVO and its limitations. In its place, we propose a method to maximize expected after-tax wealth while simultaneously allocating assets, locating assets and rebalancing.

Learning Objectives:
1. Contrast how scenario analysis, as compared with standard deviation, allows the planner to create portfolios that better provide the investor with "protections and opportunities with respect to a wide range of contingencies".
2. Introduce a function available in Excel and other common programming languages that can be used to optimize expected after-tax wealth.
3. Explain that custom portfolios not based on models are operationally efficient and better suited for taxable clients.