Finance Quick Answers
Are most people confident about picking a mutual fund?
"When it comes to choosing a mutual fund, two-thirds of consumers are more confident at purchasing a car, home computer, or life insurance policy. Baby-boomers, who came of age at roughly the same time as the explosion in mutual funds, are even less confident than other consumers," says Neal Cutler, a financial gerontologist at Widener University who directed a financial-literacy survey. Wealthier individuals aren’t immune to the mutual fund crisis of confidence. Only 31% of high income boomers are comfortable picking funds, compared with 27% of their low income contemporaries. Cutler believes his research bolsters the case for slowing down partial privatization of social security. "If we were to change the system tomorrow, the public would not be ready," he says.
Source: Kiplinger's - July ‘97
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Monday, July 28, 2008