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Our financial smarts erode quickly after age 60

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trof Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 06:31 PM
Original message
Our financial smarts erode quickly after age 60
crap
The older we get, the dumber we get?
:-(

BOSTON (MarketWatch) It must be someones idea of a joke. If so, its a cruel one. Consider: We ask older Americans to make complicated financial decisions about Social Security, Medicare, retirement distributions and more just when they are losing their fast ball.

Regardless of gender or education level, Americans become considerably less literate about all things money after age 60, according to a new study.

The scores on a test measuring knowledge of investments, insurance, credit and money basics fell about 2% each year starting after age 60, falling from about 59% correct hardly a passing grade for those in their 60s to a dismal 30% for those 80 and older, according to Michael Finke, an associate professor at Texas Tech University and a co-author of the study.

Heres whats even worse: Our confidence in our financial decision-making abilities rises with age. We are not older and wiser. Rather, we are older, less smart and overconfident.
http://www.marketwatch.com/story/our-financial-smarts-e...

We're screwed.
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trof Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 06:38 PM
Response to Original message
1. Take the quiz at the website. I got 90%.
:-)
I'm smarter than the rest of you guys.
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virgogal Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 06:46 PM
Response to Reply #1
3. I got 90 also and I'm in my 70's. Messed up the Roth IRA question.
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ProudDemForever Donating Member (2 posts) Send PM | Profile | Ignore Fri Oct-28-11 06:49 PM
Response to Reply #1
4. I got 100%...nt
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ProudDemForever Donating Member (2 posts) Send PM | Profile | Ignore Fri Oct-28-11 06:52 PM
Response to Reply #4
5. Oh, and I'm in my 70ties. = )
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trof Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 07:07 PM
Response to Reply #4
10. Duers are smarter than the average bear.
No big surprise.
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Rincewind Donating Member (682 posts) Send PM | Profile | Ignore Sat Oct-29-11 01:47 AM
Response to Reply #1
14. Not smarter than me.
I scored 100%, the average for my age group ( I'm 57) is 61%. So the question is : if I'm so smart about money and finances, how come I'm broke?
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virgogal Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 06:39 PM
Response to Original message
2.  I have a daughter that invests for me. Small amount,but important
to me.

Wisdom is not being ashamed of asking for help.
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jwirr Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 06:55 PM
Response to Original message
6. I'm 70 and the study is probably right. I have had to make decision
regarding those issues and when I read the questions I often think about the elderly I used to work with and wonder what the ones older than me were feeling. No wonder we get dementia. Not only do they ask you to choose the insurance program that is best for you but they also allow these companies to send all kinds of propaganda about their programs once a year in order to get you to change companies. Then when you finally chose a program they send you a booklet that is half a tree and expect you to read it.

A lot of their shit goes directly into recycling. Or worse yet sets around for years unread collecting dust.
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yankeepants Donating Member (602 posts) Send PM | Profile | Ignore Fri Oct-28-11 07:00 PM
Response to Original message
7. I didn't take the quiz but. . . .
Anecdotally, My father died at 62 and left my mother (also 62)with a small pension, SS, and the family home. No savings. No life insurance. She rented her homes' bedrooms out to international students at Syracuse University, became a nanny to the neighbors children and by the time she was 85 had approximately $250,000 saved and still had rental income. She was an excellent Scotswoman.

In the process she made many international Friends and travel allover the world to visit her former live-in students.

So screw that study.

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Gin Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 07:01 PM
Response to Original message
8. scored 100...not in the market...but know about mortgages..
folks in their 80's were new to 401k programs..

looking back...wish I had saved more and invested more....oh well..

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Nay Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 07:03 PM
Response to Original message
9. Hoo. Got a 100% score, and I'm 60. nt
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OutNow Donating Member (538 posts) Send PM | Profile | Ignore Fri Oct-28-11 07:19 PM
Response to Original message
11. Good Quiz
I got 100% on the quiz. I'm 61 and have been doing all my own investing for 20 years. I have an undergraduate degree in Economics and "study" things carefully before investing. During the Internet boom, I'd sit in business meetings and hear folks chat incessantly about what great web companies they were investing in and how much money they made last week, month, etc. mocking me for my long term DCA strategy. That is until the day that a colleague was called out of a meeting by his secretary for an "emergency" and came back 30 minutes later looking like he'd aged 20 years. We were all concerned and asked what happened. "Margin call" was all he was able to whisper.
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DURHAM D Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 07:29 PM
Response to Original message
12. I am 67 and got 100%.
JFTR - I would of scored lower 5 years ago. And even lower 10 years ago.
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Warpy Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-28-11 07:34 PM
Response to Original message
13. My dad was still as sharp as they come when he died at 89.
I'm hoping I got that part of the genetic heritage.

Part of the problem is that the financial landscape has been changing so quickly. Neurotransmission slows markedly as we age, making it just a little harder to keep up every single year.
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Paper Roses Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-30-11 05:29 PM
Response to Original message
15. I'm scared to death to take this quiz. Better to be dumb like this 69 year old is. N/Y
I guess I don't really want to know how badly I am doing. My judgment seems to be slipping.
Don't want it confirmed.
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RebelOne Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Nov-07-11 04:03 PM
Response to Reply #15
17. Me too. I am 72 years old and I know I would fail the test.
I have a some finances in the bank, but not enough to last me until I die, which I hope will not be for another 20 years.
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tibbir Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Oct-30-11 06:05 PM
Response to Original message
16. I just turned 60 and I scored 100%
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valerief Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-09-11 09:42 PM
Response to Original message
18. Got 100! And I'm a geezer. Well, I'm not Medicare-aged yet, but I'm still a geezer. nt
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