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Adults Make Riskier, More Inconsistent Decisions As They Get Older, Study Finds
schliz writes "People aged over 65 make poorer financial decisions and more inconsistent choices than younger individuals with the same IQ, an international research group has found. The study (abstract) had 135 healthy participants aged 12-90 make a series of decisions: for example, choosing between gaining $5 and the chance to win $20 in a lottery. On average, over-65s earned 26-39% less than all other age groups, including adolescents — a finding that could partially explain their susceptibility to problem gambling and scams."
OR, they're more worried about fiscal security at the end of their lives, and fear of things like being shoved in a crappy nursing home and having all their possessions sold off frightens them into taking risks they wouldn't otherwise consider.
Not all people over 65 are rich, you know; fact is, most are quite the opposite.
An enigma, wrapped in a riddle, shrouded in bacon and cheese
...someday you say to yourself "Look, for my entire life I've done the 'right thing' and even now it doesn't help my joints stop aching or buy me a bowel movement, so what the hell, let's try something else."
Someone had to do it.
That's what my dad used to call it when it happened to grandpa. Grandpa went from being a shrewd businessman to being someone we had to keep an eye on at all times (he would fall for every con artist who showed up at his door). That why "Travellers" in particular prey on older people.
The cow says "Moo." The dog says "Woof." The Timothy says "Thanks, valued customer. We appreciate your input."
"Each participant were faced with 320 decisions: for example, choosing between gaining $5 and the chance to win $20 in a lottery."
After a few dozen questions like that, I'd be so bored that I'd start choosing randomly without thinking about it just to get it over with. There's no way in hell I would seriously think about each and every question out of a list of 320.
If you figure you only have 5 to 10 more years left why not take a little more risk. When you have 50 years left to regret the choice it makes more sense to take less risk.
Mod parent up.
That's pretty much the way I read it too.
Old folks don't necessary look at the world as a place where you buy a few shares of Apple or Google and wait for it to grow, or where you throw money into a gambling addiction expecting your luck has to turn someday.
The author tries to spin simple fiscal conservatism as something irrational. But older people know the odds are always in the houses favor, and are less willing to play that game. Sounds like the people with gambling addiction were the people writing the story.
Sig Battery depleted. Reverting to safe mode.
You ignored: "This wealth gap is now more than double what it was in 2005 and nearly five times the 10-to-1 disparity a quarter-century ago" even after you quoted it! Some disparity is desirable (since people bulk up savings for retirement) but why has it grown so fast and so large?
I can tell you this, my dad worked at a company extremely similar to where I work, and he is enjoying a retirement I will never have, at least without extreme sacrifice now which he did not do. He got a full pension and pre-medicare healthcare benefits - both things that my employer has cut since after I hired on here. I tell him about it and he's kind of surprised. I can't blame him personally. But in general old people are just cruising along assuming nothing has really changed and "what's the matter with kids these days" that they're racking up college debt and not settling down, seemingly oblivious to the fact that they're sucking up everything in sight just by honoring the promises they made to each other back when, while failing to set enough aside to pay for them.