Study Shows Americans Less Financially Capable
The research foundation arm of the securities industry regulator has just released an unsettling report that suggests that Americans’ financial capability has gone flat after several years of notable improvements.
According to the National Financial Capability Study, the majority of Americans — and especially millennials, minorities, and single women — have lost confidence and a feeling of stability when it comes to their personal finances. Remarkably, these feelings have arisen in spite of the fact that the economy has been steadily improving over the same period of time.
FInancial Literacy Has Diminished
Knowledge is power. The FINRA foundation study has shown that financial literacy among Americans have fallen 6% from 2009, even though respondents to the survey insisted that they had a high level of financial knowledge. In other words, there seems to be a gap between what we think we know, and what we actually know.
Quelling Financial Anxiety with Financial Self-Defense
One way to quell anxiety over finances is to educate yourself. For years we have circulated a list of tips to financial self-defense, and these tips are just as relevant today as they were when we originally wrote them.
Just becoming aware and vigilant about your money, your financial advisor, and your investment portfolio is probably the single best way both to combat anxiety, raise your financial literacy, and protect your nest-egg.
Here are those tips in summary. (For the detailed pamphlet on financial self-defense, visit our broker misconduct website here.)
How to Defend Your Financial Well-being and Investments
Know your broker.
Get a second opinion about your advisor.
Review your account opening documents.
Calibrate your risk tolerance accurately.
Make sure investment objectives are correct.
Adjust your risk and objectives as you go.
Review your account for balance.
Watch out for overconcentration.
You’re your own first line of defense.
Don’t be afraid to call the supervisor.
PA & NJ Stock Broker Misconduct Lawyers
If you or someone you know has been the victim of broker misconduct or investment fraud, please contact our attorneys immediately for a free consultation at 21 5 462 3330 or by using our online contact form.