What I Know, What I Think I Know, and Whom I Know

Drawing on social cognitive theory and social network literature, this study examines how objective financial knowledge (OFK) and financial knowledge network intensity (FKNI) influence retirement investment decisions through the mediation of subjective financial knowledge (SFK). Using survey data, we find that OFK and FKNI enhance 401(k) account holders' risk-taking and investment quality. We also find a unique role of SFK in retirement investment decisions: SFK mediates the effect of OFK on risk-taking, not on investment decision quality. While the interaction between OFK and FKNI does not influence investment decision quality through SFK, it does positively influence risk-taking through the mediation of SFK, which implies that OFK and FKNI serve as complements to each other in risk-taking through the mediation of SFK. We suggest that individuals may reap benefits from financial literacy and financial network-building programs for improving retirement investment decision-making.