How Financially Literate Is the Investing Public?

July 29, 2014 3:16 PM

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Part of the difficulty stems from the fact that many workers, both in the U.S. and worldwide, are now directly responsible for their financial well-being. Defined-benefit pensions are few and far between, as more and more employers opt instead for defined-contribution plans, where both employers and employees contribute, and employees have some discretion for management.

The trouble is, most individual investors are not sufficiently well-informed on financial matters, and thus often make less-than-optimal choices in managing their retirement. The 2014 DALBAR report, for instance, concluded that over the past 20 years, individual stock fund investors achieved only a ...

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