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Old 06-02-2016, 03:52 PM   #21
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I'm not sure if it effects my financial literacy or not, but I have noticed I have a more difficult time doing math in my head as I get older (60 now). I've always been able to do simple math (addition, division, etc.) in my head, but I'm finding now that I can't hold the numbers in place as well. I'm still usually right, but it takes more effort. And sometimes I blow it completely.

So I can see that there is some degradation in skills as I age, but I'm not sure how that would effect my financial literacy. I still know the answer to the various questions, and am fully able to budget, rebalance, and withdraw. As others have implied, as long as you have a plan and a procedure, it really doesn't matter if you can't do the division in your head.
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Old 06-02-2016, 04:48 PM   #22
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I'm not sure if it effects my financial literacy or not, but I have noticed I have a more difficult time doing math in my head as I get older (60 now). I've always been able to do simple math (addition, division, etc.) in my head, but I'm finding now that I can't hold the numbers in place as well. I'm still usually right, but it takes more effort. And sometimes I blow it completely.

So I can see that there is some degradation in skills as I age, but I'm not sure how that would effect my financial literacy. I still know the answer to the various questions, and am fully able to budget, rebalance, and withdraw. As others have implied, as long as you have a plan and a procedure, it really doesn't matter if you can't do the division in your head.
Exactly! I wouldn't worry about that affecting your financial literacy. You can do simple math either on paper or with a calculator or computer. I wouldn't worry unless/until you have trouble pinpointing what math problem you need to solve and why.
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Old 06-02-2016, 05:13 PM   #23
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I am seeing the same thing, but then again I never need to do arithmetic in my head any more. That system engineering degree that I acquired at the young age of 55 forced me to learn to use spreadsheets ;^>

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I'm not sure if it effects my financial literacy or not, but I have noticed I have a more difficult time doing math in my head as I get older (60 now). I've always been able to do simple math (addition, division, etc.) in my head, but I'm finding now that I can't hold the numbers in place as well.

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Old 06-02-2016, 11:51 PM   #24
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Possible cognitive decline makes me especially glad to have the pension payment + social security components which should guarantee there will at least be enough for beans and rice and electricity if the nest egg should get scrambled for any reason.


+1

excellent Pres. Coolidge quote also
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Old 06-03-2016, 02:59 AM   #25
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That's why I double check with my calculator from either my iPhone or iPad. Even for tips, my kids check that we add them right.
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Old 06-03-2016, 05:48 AM   #26
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Is it possible that retirees are more focused on enjoying their retirement rather than spreadsheets? As long as there is money in the bank to pay bills, travel and have some hobbies, they may not care as much as if they were working.


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Old 06-03-2016, 06:50 AM   #27
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Possible cognitive decline makes me especially glad to have the pension payment + social security components which should guarantee there will at least be enough for beans and rice and electricity if the nest egg should get scrambled for any reason.
Choosing an annuity would accomplish the pension part. Question is, is that best for anyone.
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Old 06-03-2016, 06:52 AM   #28
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I've found that over the past two years I have less interest in following short-term moves. And I don't have to much concern myself about that with someone else running much of the show. Of course many think they're fine running the show to the end. TETO.
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Financial Literacy Goes South at 60
Old 06-03-2016, 06:53 AM   #29
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Financial Literacy Goes South at 60

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I seem to see more and more articles on how we loose financial "smarts" as we age.
This article suggests it is even more pronounced and widespread than I had wanted to believe--1.5% degradation every year after 60--regardless of gender or background.

So at age 90 we will still be around 69% smarter about financial matters than the average non-ER.org reader ... Despite our gray matter decline.

Stay calm and keep invested !!

It's a ploy to get older folks to sign up with high fee FA's ... Here's "a study proving that older folks shouldn't DIY"

I like the idea of keep it simple.
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Old 06-03-2016, 08:59 AM   #30
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That's why I double check with my calculator from either my iPhone or iPad. Even for tips, my kids check that we add them right.
I can still manage tips. I even look forward to mediocre service so I can do 15%, since 20% is easy.
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Old 06-03-2016, 10:35 AM   #31
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I can still manage tips. I even look forward to mediocre service so I can do 15%, since 20% is easy.
I love figuring out tips and how much each of us needs to chip in for the bill at lunchtime including taxes. To me this is loads of fun and I am probably better at doing this in my head, than I was when I was in my 30's. Doing math in my head is something I have always liked and been unusually good at, though, for some reason.

I do "lose" a word or name now and then and have to describe around it until F suggests the word or name I am trying to recall. This type of forgetting aggravates me but I suppose it is part of aging and I should just accept it. F says the mind is like a file cabinet, and when it gets full it is hard to remember new things or find anything in it very fast. Nice analogy.
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Old 06-03-2016, 12:13 PM   #32
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I can still manage tips. I even look forward to mediocre service so I can do 15%, since 20% is easy.
It's not the percentage, it's the addition that I notice husband and I might make mistake.
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Old 06-03-2016, 02:13 PM   #33
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I am seeing the same thing, but then again I never need to do arithmetic in my head any more. That system engineering degree that I acquired at the young age of 55 forced me to learn to use spreadsheets ;^>
A degree at 55, wow congratulations. What made you want to do that?
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Old 06-03-2016, 02:23 PM   #34
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Originally Posted by nwsteve View Post
I seem to see more and more articles on how we loose financial "smarts" as we age.
This article suggests it is even more pronounced and widespread than I had wanted to believe--1.5% degradation every year after 60--regardless of gender or background.
The scary switch that happens to investors over age 60
Check out the survey questionnaire they used link in the article--seems pretty straightforward to me and I am 68.
Unfortunately, the full study while linked in the article is behind a pay-wall.
Anyone else noticed degradation?
Nwsteve
I really think it would be hard to self notice degradation, due to the fact that you are degrading and the natural response would be denial. All the more reason to keep your portfolio simple with index funds and minimal complex trading schemes.
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Old 06-03-2016, 02:26 PM   #35
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From the OP's linked article:
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Finke, along with Texas Tech professor Sandra Huston and University of Missouri finance professor John Howe, looked at literacy scores of more than 3,870 adults aged 60 and older. Topics in the assessment included investing, borrowing, insurance and basic financial knowledge.
Investing -- I don't care about the tests. I benchmark against some pretty good portfolios and come up doing well. When I stop comparing favorably, I'll turn it over to the folks at Wellington/Wellesley.

Borrowing and insurance -- who needs this?

Basic financial knowledge -- I agree, most Americans are pretty clueless.
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Old 06-03-2016, 02:36 PM   #36
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I really think it would be hard to self notice degradation, due to the fact that you are degrading and the natural response would be denial. All the more reason to keep your portfolio simple with index funds and minimal complex trading schemes.
I agree that designing a portfolio (or choosing one) with low complexity is good at any age.

I'm always trying to simplify things and commit my methods to spreadsheets that are not overly complex. This results in a data driven strategy as opposed to ad hoc.
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Old 06-03-2016, 03:52 PM   #37
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That's why I double check with my calculator from either my iPhone or iPad. Even for tips, my kids check that we add them right.

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Originally Posted by harley View Post
I can still manage tips. I even look forward to mediocre service so I can do 15%, since 20% is easy.

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Originally Posted by W2R View Post
I love figuring out tips and how much each of us needs to chip in for the bill at lunchtime including taxes. To me this is loads of fun and I am probably better at doing this in my head, than I was when I was in my 30's. Doing math in my head is something I have always liked and been unusually good at, though, for some reason.

Many years ago I read or heard that an easy way to estimate restaurant tips was to simply take the tax and double it. And depending upon local tax rates that can usually get one in the ballpark for ~15%. Of course the 20% is drop dead simple by moving the decimal point and then doubling it. The only downside to such shortcuts is one less opportunity to exercise the aging noggin. But if the alternative means finishing off a nice dining experience by doing more complicated head math, I'd rather just go home and help my grandkids with their homework...
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Old 06-03-2016, 03:57 PM   #38
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Many years ago I read or heard that an easy way to estimate restaurant tips was to simply take the tax and double it.
The restaurants around here have taken to calculating the tips for 10%, 15%, and 20% for you, printed on the bill, thus taking away even that simple exercise.
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Old 06-03-2016, 05:59 PM   #39
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I really think it would be hard to self notice degradation, due to the fact that you are degrading and the natural response would be denial. All the more reason to keep your portfolio simple with index funds and minimal complex trading schemes.
I just assume there is degradation. I just don't know to what degree. I used to have someone check that I did the tip correctly and then check my addition. Now, I just let someone at the table put in the tip and do the addition (and usually sign my name as I have on occasion signed my name in the wrong place--which isn't easy to do).

As for investments. Most of my stuff is in index funds or Wellesley or Wellington and I don't mess with it. I mess a bit with my dividend fund, but I have someone looking over my should when I buy (or sell) something. I also use a desk calculator to tally up shares and price before I buy (or sell). And, I, of course, pay attention to what the brokerage company says the entire transaction will cost before I complete the transaction.
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Old 06-03-2016, 06:41 PM   #40
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No, not at all. The reverse is true,,,,,, so far....
+1
My cognitive skills--financial and otherwise--have increased exponentially since the age of 45. I've noticed my decision-making skills have increased markedly with each passing year. Then again, I view aging as a (socially acceptable as well as socially contagious) "mental" disease more than anything else.
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