The Brooke Astor Effect
In another dispatch from Chicago, we look at Harvard professor David Laibson’s research on aging and financial decisions. It’s no injection of happy, but interesting noodling nonetheless.
Those over the age of 50 end up paying higher interest rates, even though on average they had better FICO scores and lower default rates, Prof. Laibson said. “Middle aged people get better deals,” he said. In terms of risk-adjusted returns on investments, the young do relatively well, but the “old are doing absolutely abysmal,” paying more in fees and suffering from poor asset allocation, he said.
Read rest here and previous coverage on elderly fraud here.