A recent report by the FINRA Investor Education Foundation reveals that many U.S. investors are overconfident in their financial knowledge. The report relies on an in-depth survey of approximately 2,000 U.S. investors and provides insights into investor behaviors and beliefs.
The findings show that although 75% of investors believed they had the information they needed to make investment decisions, less than 33% were able to score better than 50% on a 10 question financial quiz, with the average score just 4.7.
Additionally, many investors are confused about the various fees they pay for investing. Fourteen percent of all respondents do not think they pay any fee for investing, and 17% say they do not know how much they pay. Among mutual fund owners, nearly a third (32%) believe they do not pay mutual fund fees or expenses despite an asset-weighted average expense ratio of 0.48%.
Are you questioning your financial literacy, unclear on your fees, or unsure where to start? The Wise Investor Group can help demystify the complexities of modern investing. From relieving financial stress to securing your future, our team is committed to serving your unique needs and goals and helping you navigate whatever life may bring.