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Do older investors make better investment decisions?
I came across an interesting tidbit in the Wall Street Journal this weekend regarding the investment knowledge and skill of older investors. A new study looks at whether cognitive aging has an impact on investor’s investment portfolios. They found that older investors do make better investment choices due to better investment experience compared to younger investors, but they also found that executing those strategies became a problem as investors aged. The authors found that older investors underperformed younger investors (with similar portfolios) by 3-5 percentage points. There are important implications to consider with regards to seeking qualified investment advice as we age.