fluid intelligence cognitive theory word recall test (immediate and delayed average, 2010 health...
TRANSCRIPT
![Page 1: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/1.jpg)
![Page 2: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/2.jpg)
Fluid Intelligence
![Page 3: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/3.jpg)
Cognitive Theory
![Page 4: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/4.jpg)
Word Recall Test (immediate and delayed average, 2010 Health & Retirement
Study)
(Source:)
60 65 70 75 80 85 903
3.5
4
4.5
5
5.5
6
Episodic Memory
![Page 5: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/5.jpg)
Rates of cognitive impairment by Age(Source Agarwal, Driscoll, Gabaix and Laibson, 2010)
71-79 80-89 90 +0
10
20
30
40
50
60
70
80
5
2437
16
29
39
Cognitive impair-ment, not demenitaDementia
![Page 6: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/6.jpg)
Interest Rates on Loans
![Page 7: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/7.jpg)
Financial Literacy (TTU Financial Literacy Assessment Project)
Examples of questions:8. Savings accounts and money market
accounts are most appropriate for1 Long-term investments like retirement 2 Emergency funds and short-term goals 3 Earning a high rate of return 17. If you have an insurance policy with a
higher deductible, the premiums will be1 Higher 2 Lower 3 The same
![Page 8: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/8.jpg)
Investments
13. The benefit of owning investments that are diversified is that it
1 Reduces risk 2 Increases return 3 Reduces tax liability
15. The main advantage of a 401(k) plan is that it:
1 Provides a high rate of return with little risk 2 Allows you to shelter retirement savings from taxation 3 Provides a well diversified mix of investment assets
![Page 9: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/9.jpg)
Age and Literacy
![Page 10: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/10.jpg)
Literacy and Confidence
60 65 70 75 80 850
10
20
30
40
50
60
70
80
90Financial Literacy Confidence
![Page 11: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/11.jpg)
By Topic Area
60 65 70 75 80 850
0.5
1
1.5
2
2.5
3
3.5
Basic Borrowing Investment
![Page 12: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/12.jpg)
Equity allocation and cognitive decline
Lowcog Avgcog Highcog
-40
-35
-30
-25
-20
-15
-10
-5
0
Percent change in Equities 2008-2010 by Word Recall
Median
![Page 13: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/13.jpg)
Who Pays for Financial Advice?(By Age & Type of Advice)
(Source: Finke, Huston, and Winchester, 2011)
<35 35-44 45-54 55-64 65+
0
5
10
15
20
25
30
35
40
Transaction-based Comprehensive
![Page 14: Fluid Intelligence Cognitive Theory Word Recall Test (immediate and delayed average, 2010 Health & Retirement Study) (Source:)](https://reader030.vdocument.in/reader030/viewer/2022032523/56649d745503460f94a54e79/html5/thumbnails/14.jpg)
Accepting Cognitive Aging
Decline in financial decision making ability mirrors decline in cognitive ability in advanced age
Importance of planning for cognitive declineSimilar to decline in drivingBut, when drivers given objective evidence of
declining skills, they change behavior (Holland & Rabbitt, 1992)