The clients who need your help the most

by Jake Simms

Posted in: In this week's e-newletter, Latest News & Views, Retirement Planning

Many financial advisors focus on clients in their prime income-building years. That may be a mistake.

Reason: Clients start losing their financial acumen at age 60 and lose a little bit every year after.

Texas Tech University researchers tested people on their knowledge of investments, insurance, credit and money basics for a recent study.

The results:

Financial IQ drops an average of 2% per year starting at 60
Folks in their 60s got 59% of the questions right, while
Ocotgenarians only answered 30% correctly.

Michael Fink, the author of the study, says the scary part is people’s confidence about their financial decision-making rises as they get older, even as their actual skills decline.

Click here for the Texas Tech study.

Tags: michael finke, retirement, retirement planning, senility, texas tech

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