Older U.S. investors may engage in more risky financial behaviors as they continue to age and face diminished financial knowledge, according to new research from the Financial Industry Regulatory Authority Investor Education Foundation.
Financial literacy levels among all Americans are alarmingly low, but among older investors, research suggests that the challenges are even greater. According to the study, financial literacy was lowest among the oldest adults, and those individuals who were the most overconfident were more likely to take financial risks.
The majority of respondents to the latest poll answered with: Yes – I want to be careful with my investing decisions and risk tolerance at my current age, while half of the respondents chose: No – I don’t think my age impacts my confidence in investing or risk tolerance. This shows that the large majority chooses to be more careful in their financial decisions no matter what their age.
Have questions, need to re-evaluate your risk tolerance, or want to learn more about how you can improve your financial knowledge? Don’t be afraid to reach out to your financial advisor – they are here to help you!