Financial managers are more likely to take their own money
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A new study suggests that financial managers are even more likely than other professionals to take money from their own accounts.
The study, published in the Journal of Accounting & Finance, examined the behaviour of 5,200 people in the United States and Canada.
It found that financial advisers who had taken money from an employer’s 401(k) account were twice as likely to receive a bonus than other financial professionals.
The results suggest that financial advisors are being forced to take on more of the burden of the company’s tax liabilities.
“It seems like people who take money in their own funds are more susceptible to the impact of the taxes they take,” said co-author and assistant professor of accounting and finance David M. Ritchie, a former financial planner at University of Illinois.
“So if you have a large company with high corporate taxes, and the tax burden is very heavy, it’s going to make financial advisors more vulnerable to those taxes.”‘
You take money for no reason’The study also found that those who took money from a 401(K) account, or other employer-sponsored retirement plan, were also more likely, on average, to take it out of a client’s personal account.
It’s not clear how much of the difference in bonuses is due to a person taking their own fund, and how much is due the fact that advisers are taking their clients money.
“We do know that advisers take a lot of money for absolutely no reason,” Ritchie said.
“Some people are more inclined to take the money for a specific reason than others.”
There’s a lot that goes into the decision to take a loan or take money out of an employer retirement account.
“I think we’re looking at a really important question: if you take money because you can, you’re going to take more of that money out.”
That’s something that’s been well-studied in psychology, and a lot is known about how we make decisions.
“But we don’t really know why that’s the case.”
Ritchie said there was also evidence that advisers may be using the money to fund their own personal spending, such as travel and travel-related costs.
“You take the cash from your 401(ks), you take the credit card, and then you pay your mortgage,” he said.
“That’s not really something that people expect.”
The study was based on responses from about 1,600 people in Canada and the United Kingdom.
It was not intended to be a comprehensive look at the behaviour and habits of financial advisers.
A new study suggests that financial managers are even more likely than other professionals to take money from their own…