How savvy are you about investing? Knowledge of key investing concepts in the U.S. is considered low, with two-thirds of adults who own investment accounts failing to correctly answer more than half the questions in a 10-question quiz, (https://www.- usfinancialcapability.org/quiz.php) according to Wall Street’s self-policing organization. A study issued by the Financial Industry Regulatory Authority’s education foundation also shows that many investors are confused about the fees they pay. Nearly a third of those questioned think they don’t pay any fees at all for their investment accounts or don’t know how much they’re paying.
The study found that just under a third of the U.S. population has taxable investment accounts, as opposed to tax-deferred retirement accounts such as 401(k)s and IRAs. The number of men who have such investment accounts has increased, while the number of women who do has remained flat since 2015. Ownership of the accounts has increased among millennials (ages 18-34) and African Americans. The study is based on responses from around 2,000 people with taxable investment accounts. You can take the quiz at the website of FINRA’s education foundation.