Investing Money “Before You Lose Your Mind”

Your ability to make sound financial decisions will start to wane once you go past 60, no matter what your gender or education level is.

It’s not pleasant. It’s not politically correct. It’s not something most people want to hear. But it’s the truth – at least according to one Texas Tech professor by the name of Michael Finke.

Finke comes to this conclusion by simply asking a group of different people from equally different age groups, and suggests that we all undertake three “tasks” as we start to age.

One, accept that we will start losing our financial know-how later in life. Two, set up a plan that doesn’t require complex decisions in old age. Three, blend in some annuities in our income along with some passive investments i.e. stock investing.

These tasks are pretty sound when you stop and think about it. No matter how much we want to be the exception, we have to be prepared for the (high) possibility that our cognitive abilities will start breaking down in our later years.

So while the study is aimed squarely at older Americans, the young ‘uns still need to keep these bits in mind – especially since old age eventually comes for everyone.