Insights | 09.16.20
Older Investors Prone to Financial Overconfidence, Risk-Taking: FINRA
Older investors may engage in more risky financial behaviors as they continue to age and face diminished financial knowledge, according to new research from the FINRA Investor Education Foundation, in collaboration with researchers from Duke University and Rush University Medical Center. The findings, released in recognition of September as Healthy Aging Month, indicated that adults who were more overconfident reported being more willing to take financial risks. “Across a wide spectrum of investment choices, there are many opportunities for senior investors to take excessive financial risk,” said , FINRA Foundation President Gerri Walsh. However, one major problem is that, “as an individual ages, opportunities to recover lost wealth are limited, which reinforces the importance of identifying vulnerabilities in certain older adults and developing interventions to empower them to make wise financial decisions into the most advanced ages.”
Read the full article on Think Advisor.