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If you’re in your 60s, you probably don’t do calculations as quickly as you used to. It might take you a bit long longer to learn the nuances of a new investment. Yet when researchers test the financial decision-making capacity of people in this age cohort, they often perform as well or better than younger people. What they’ve lost in processing power, they have more than offset in experience.
But eventually with normal aging, say in your late 70s or 80s, financial decision-making tends to worsen. You may overreact to market downturns, or underreact to financial problems, or forget to pay bills. And older people are more vulnerable to scams.
Such changes in your brain are predictable and you should start preparing for them long before they pose problems, financial pros say. Simplify your affairs, getting rid of unnecessary accounts and credit cards. Consider annuitizing part of your investment portfolio to create a regular monthly…
