Relations among age, income, and knowledge of investments

This study examined consumers' interactions with financial advisors in terms of the age and income of the respondents. The respondents were 500 residents of Florida interviewed in a random telephone survey. The dependent variables for the analysis were (1) frequency of communication, (2) knowledge, and (3) confidence in investment. No significant differences were found for frequency of interaction, but differences were identified on both knowledge and confidence in investment. Older respondents had more knowledge about investment than did younger ones, and respondents of higher income had more knowledge and more confidence in their investments than did those of lower or middle income. The results are discussed in terms of immediacy theory. Investment issues would have more immediacy for higher income respondents since they would have more money available for investment. Similarly, immediacy would be higher for older respondents since they would have more time and interest to devote to investment issues.