Abstract
Using experimental survey data collected from a sample of Generation Yers, we examine the joint influence of financial literacy and financial networks on individual retirement investment decisions. We find, first, that financial literacy and financial network intensity (the network strength with the financially literate) are positively related to stock allocation. Second, the positive relationship between financial literacy and stock allocation, however, is significant only among those having high financial network intensity. This finding suggests that the positive effects of financial literacy documented in the literature can be limited to only those who have strong networks with the financially literate.