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Old 10-27-2011, 10:15 AM   #21
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No mortgage for many years, but when I did buy a first house decades ago, my 16.5% variable loan allowed me to qualify when prevailing 19% fixed rates would not. It was a scary decision, so seared into my brain. I'm not likely to forget the answer to #4 until I'm really too old to make financial decisions on my own.
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Old 10-27-2011, 10:15 AM   #22
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64 and scored 100%
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Old 10-27-2011, 10:53 AM   #23
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39-90%. Never can remember the difference between a ROTH and trad. IRA without looking it up.

I have both and invest in each on alternating years...
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Old 10-27-2011, 11:06 AM   #24
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These have nothing to do with financial acumen, but rather how well you have learned your financial catechism. Most of them are definitely TBD in each historical situation.

Ha
+1 I hemmed and hawed on a couple because I could see how different answers could apply depending on perspective. Then I selected the least subtle "correct" answer and ended up with 100%. 63 Y/O - so far so good but I am experiencing CRS syndrome on other topics.
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Old 10-27-2011, 11:26 AM   #25
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Banks are stupid... they only look at 'can you pay this monthly payment'... who cares about 3 or 5 years from now... and 20 years from now nobody here will be around.... if you can't make it then, that is their problem...
Of the reasons given, this makes the most sense to me. I, also, hesitated over this question (but got 100%).

I guess this is common knowledge, but I think it is remarkable that the over 60s
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now represents more than 12% of the population and controls half of all the financial wealth in America, ...
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Old 10-27-2011, 12:24 PM   #26
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100% - but what do I (think I) know - according to the article - I'm 60

You have to wonder about the qualifiers. People now in their 70's and 80's probably didn't have to deal with a lot of the more complex financial scenarios available today. Imagine Jay Leno could have a field day with this (jaywalking) - most people can finish jingles, but some can't name the first President of the United States

With the comments (Finke is also a CFP) about how older people should turn control of their money over to financial professionals, and/or buy annuities - think annuity salespeople and financial planners will be handing older customers copies of this article?
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Old 10-27-2011, 01:01 PM   #27
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Not much of a test. I scored 100% (guessed #4 correctly) but I certainly wouldn't want to give advice to anyone. I read somewhere that we become overconfident in our thinking abilities as we age. However I have no idea where I read it.
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Old 10-27-2011, 01:03 PM   #28
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Well, I chose the dental insurance insurance instead of the disability insurance for #10 (a young person with no family). A set of pearly whites will will help ensure this person looks good for job interviews!
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Old 10-27-2011, 01:07 PM   #29
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These have nothing to do with financial acumen, but rather how well you have learned your financial catechism. Most of them are definitely TBD in each historical situation.

Ha
Even so, if there is a decreasing ability to answer the questions "correctly" based on age, that's an indication of a problem. Heck, I can't tell you how many classes I passed and certifications I got putting down answers that I knew were wrong, but were what the authorities wanted the answer to be.

Unless, of course, the reason the oldsters were getting lower scores is that they don't believe the standard answers and didn't care enough to try to "pass". Cranky old folks could easily do that. Honey badger don't give a $#!%.
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Old 10-27-2011, 01:18 PM   #30
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100%, but this study doesn't seem right to me.

Let's take the first question:
Q.1 Savings accounts and money-market accounts are most appropriate for: Emergency funds and short-term goals
I got that right. If I don't get it right in 10 years, does it mean that financial smarts have eroded? It will probably only mean that my memory is shot.

Now, if there is some new financial vehicle that I haven't heard of because I'm 68, then I am ignorant, but not less smart.

The fact that older people did less well, doesn't mean that as people get older they'll do less well. It only means that right now, older people did less well on the test.
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Old 10-27-2011, 01:31 PM   #31
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I got a 100% and am not a senior. However, how many of the older seniors are getting a first mortgage, buying a car or worried about credit card interest rates? In other words, don't rely on your 90 yo grandma to give you advice on various mortgage options.
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Old 10-27-2011, 02:42 PM   #32
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It will probably only mean that my memory is shot.
Only? If you open up your computer and remove its memory chips, ...
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Old 10-27-2011, 03:55 PM   #33
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I got #4 wrong, but I am a money lender and we run debt ratios based on todays rate plus 3% but i guess we are a conservative lender. Evidenced by the fact that we didnt get laid away during the past couple years. Fixed rate is running about 4.25 and ARM was 3.875% today so not a whole lot of difference. Makes me wonder why on earth anyone would sign up for an ARM.
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Old 10-27-2011, 04:01 PM   #34
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63/100%
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Old 10-27-2011, 04:27 PM   #35
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100%. Not sixty yet, but I grew up in the sixties...
+1
I would not have done as well in my 20's or maybe even my 30s as I did today. I wasn't thinking as much about retirement, and as I recall, IRAs did not even exist, so no way I would have answered that question correctly.
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Old 10-27-2011, 04:43 PM   #36
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I can't believe all of those "other people" scored so low. I think he made it all up.
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Old 10-27-2011, 05:23 PM   #37
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100% at 54. Sent it to my kids (early 20s) to see if they've learned anything from me trying to teach them about financial matters.
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Old 10-27-2011, 05:26 PM   #38
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This reinforces my thought that most people are simply not interested enough to learn to manage their finances themselves.
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Old 10-27-2011, 06:15 PM   #39
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Something's fishy... Each problem has 3 chioices. Answering randomly would give you an average score of 3.3/10. The chart accompanying the article shows people age 80 and over averaging less than this. Is this willful ignorance? Are old people that ornery?
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Old 10-27-2011, 06:29 PM   #40
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Forget the test. I just scored 100K of 10 yr Zimbabwe bonds paying 80%. Don't tell me old people don't know what's going on.
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