Personal Finance News Thursday 9/6

Phil's Personal Finance Tip of the Day:

True or False: Many Americans Don't Understand the Basics of Investing
By ANDREA COOMBES/The Wall Street Journal

It's the time of year when students nationwide head back to the classroom. Adults might want to hit the books, too.

When it comes to understanding basic concepts about investing, Americans come up woefully short.

Consider that while 67% of respondents to a 2009 survey rated their own overall financial knowledge as "high," only 53% answered this question correctly: "True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund."

Only 6% got the answer wrong, choosing "True." But fully 40% said they didn't know the answer, and 1% declined to answer. The survey of about 28,000 U.S. respondents was by the Investor Education Foundation of the Financial Industry Regulatory Authority. Finra, as the authority is commonly referred to, is a private, industry-funded agency that regulates financial-services firms.

Another question on Finra's survey: "If interest rates rise, what will typically happen to bond prices?" The possible answers were: rise, fall, stay the same, or there is no relationship.

To read the entire article from The Wall Street Journal:
http://online.wsj.com/article/SB10000872396390444812704577605232303164416.html?mod=WSJ_PersonalFinance_PF14

Scripture of the Day from Dave Ramsey.com:
Matthew 16:26 — What good will it be for man to gain the whole world, yet forfeit their soul? Or what can anyone give in exchange for their soul?

Please listen to the Dave Ramsey show live on WOR 710 from 2-4 PM EST. You can also listen to the 3rd hour 4-5 PM EST. at Dave Ramsey.com.