Don’t Let Your Parents Get Emotional about Their Retirement Funds

Texas Tech University recently published some research that you’ll have to go to the UK papers to read, but is just as important for elderly Americans. Anyone who follows investment news knows that amateur investors are notorious for buying at high points and selling at low — the exact opposite of the desired outcome. But new research shows that the elderly can be particularly susceptible to these sorts of emotional errors; particularly those who have a decreasing capacity to solve logic problems. “Just as when people get older they tend to become less capable of walking up steps or driving a car, the same goes for managing a pension.”