Some may assume that those who are targets of financial fraud are mostly elderly. However, a new FINRA Investor Education Foundation report suggests otherwise, which raises questions about vulnerability to fraud across all age groups.

"Investors in the United States: A Report of the National Financial Capability Study" was released on Dec. 4 (tinyurl.com/4afmv6bw). The foundation is a nonprofit educational organization established by FINRA, which oversees member broker-dealers who do business in the U.S.

In the NFCS Investor Survey, which involves 2,861 adults who have investments outside of retirement accounts, researchers asked the following question:

"If you heard about an investment opportunity that promises a guaranteed, risk-free 25% annual return every year for the next 5 years, would you invest in it?"

Surprisingly, half of the respondents indicated they would invest in the offer, apparently "unaware that the promise of a 'guaranteed, risk-free 25% annual return' should be a red flag indicating fraud," quoting the FINRA report. Only 21% said no. Another 30% chose "don't know," with the report suggesting that they "may be at least somewhat cautious."

The big eye-opener comes when you look at ages. Older investors did not fall for the extraordinary promise of riches. Young people did.

"Only" 36% of those 55 or older said they would opt for the investment (with 42% choosing "don't know"), as opposed to 60% in the 35 to 54 age bracket (20% "don't know") and 64% of those 18 to 34 (16% "don't know").

Experience also played a role, as one might expect. The more experienced investors were less likely to embrace the opportunity. Forty percent of those with 10-plus years of investing experience said they would invest, compared with 61% who had two to 10 years of investing experience, and 63% of those with fewer than two years.

"All investments involve some level of risk, and investors must understand their own risk tolerance to make informed decisions," Gerri Walsh, president of the FINRA Foundation, said in a release about the findings (tinyurl.com/yz7964bp). "At the same time, investors must learn to spot the red flags of investment fraud -- including the promise of little to no risk with unusually high returns."

Would you invest in such an asset, or would you immediately turn it down? If it piqued your interest, would you do research on it before jumping in?

Keep in mind that sometimes "you don't know what you don't know."

For example, in another category of the FINRA survey, investor knowledge was tested through 11 multiple-choice questions on various investment-related topics and concepts.

Those respondents who considered themselves to have a high overall knowledge of investing (56%) got the most questions right (an average of 6.0). But the report also pointed out that a majority of those respondents (51%) "are unable to identify the warning signs of fraud, suggesting that overconfidence can put investors at risk."

While respondents in general did well on topics related to inflation (77% correct), risk and return (74%) and the definition of stocks (74%), they had much more difficulty with topics such as the definitions of selling short (23%) and buying on margin (20%).

When Olivia Valdes, principal research analyst at the FINRA Investor Education Foundation, was asked in a virtual press conference related to the study, "Are investors overconfident on investment knowledge?" she answered "Yes," pointing out that this was particularly true for younger and less experienced investors, as well as margin and options traders.

A key to financial knowledge is to choose reliable sources. One resource I have mentioned before is the FINRA Securities Helpline for Seniors (tinyurl.com/3dc87a3s), which takes calls from people of all ages. One goal of the helpline is to help prevent potential losses from fraud.

FINRA also has BrokerCheck (brokercheck.finra.org), where you can research the background and experience of financial advisers and firms.

Websites like those for the FBI (tinyurl.com/55yzyswe) and the U.S. Department of Justice (tinyurl.com/4f3z58yw) have sections devoted to elder fraud. The U.S. Securities and Exchange Commission has a webpage where you can submit a tip or complaint about possible securities fraud (tinyurl.com/2rxe6vmv).

On the educational front, FINRA (tinyurl.com/ys3d7b95) and Investor.gov (tinyurl.com/55atdvzf) both have pages devoted to combating investment fraud.

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As you begin planning for how your financial resources will be allocated in 2026, know that there are new limits for what you can contribute to your 401(k) and IRA.

The IRS announced on Nov. 13 that the amount individuals can contribute to their 401(k) plans in 2026 has increased by $1,000 to $24,500. The same is true for 403(b) and 457 plans, as well as the federal government's Thrift Savings Plan (TSP).

The details were part of Notice 2025-67 (tinyurl.com/mpv4tkzu). If you are age 50 or older, the maximum amount is higher due to catch-up contributions of $8,000 (an increase of $500 from 2025's limits). That brings up your limit to $32,500 in 2026 if you are 50 or older. The limit applies to 401(k)s, 403(b)s, 457s or TSP plans -- provided the plan allows for catch-up contributions.

In addition, there is a higher catch-up contribution limit than $8,000 for those employees who attain ages 60 to 63 in 2026. That limit remains at $11,250 for 2026.

The overall employer plus employee contributions limit for defined contribution plans in 2026 is $72,000, an increase of $2,000 over 2025. This limit is exclusive of catch-up contributions. That is, the highest limit for a 401(k) with catch-up contributions would be for an employee aged 60 to 63 in 2026, bringing the $72,000 up by $11,250 to $83,250.

Note that the annual benefit under a defined benefit plan is limited to $290,000 in 2026, up $10,000 from 2025.

As for IRAs, the annual total contribution (to traditional and Roth IRAs combined) has increased by $500 to $7,500. The catch-up contribution for an IRA (ages 50 and over), which has an annual cost-of-living adjustment due to the SECURE 2.0 Act, is up $100 in 2026 to $1,100, for a total maximum contribution of $8,600.

If your IRA is a traditional one (tax-deferred), you might be able to deduct your contributions, although that deduction can be reduced or phased out if you or your spouse are covered by a retirement plan at work. It depends on your filing status and income, which is based on your MAGI (see the IRS webpage "Modified adjusted gross income" for more details -- tinyurl.com/23tspt4n).

The phase-out range for tax deductibility for 2026 for a single taxpayer covered by a workplace retirement plan is between $81,000 and $91,000, up $2,000 from 2025.

For married couples filing jointly, the phase-out range for a spouse making the IRA contribution and covered by a workplace retirement plan is between $129,000 and $149,000 (an increase of $3,000 from 2025). If an IRA contributor is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is between $242,000 and $252,000, an increase of $6,000 from 2025.

For Roth IRAs, the income phase-out range is between $153,000 and $168,000 for single filers, an increase of $3,000 from 2025, and between $242,000 and $252,000 for married couples filing jointly, an increase of $6,000 from 2025.

The income limit for those low- and moderate-income workers who might qualify for the Saver's Credit (aka the Retirement Savings Contributions Credit) is $80,500 for married couples filing jointly (an increase of $1,500 from 2025) and $40,250 for single filers (up $750 from 2025). More information on the Saver's Credit can be found at the IRS webpage "Retirement Savings Contributions Credit (Saver's Credit)" -- tinyurl.com/2wd995zt.

Finally, if you are someone interested in making a qualified charitable distribution (QCD), the limit rises to $111,000 in 2026 from $108,000 this year, according to the IRS. A reminder: You must be at least 70 1/2 years old to make a QCD.

As I often mention, each person's tax situation is unique, so you'll want to discuss the upcoming year with your tax adviser to see how the new limits will affect your financial plans.

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What better opportunity than Thanksgiving to enjoy family and -- just for fun -- add financial literacy to the conversation.

Family and culture are important aspects of financial literacy -- especially how financial issues are communicated and demonstrated in the home.

This is what I have in mind: If you had the benefit of hindsight, what subjects do you think high school students should have learned to prepare for life after graduation? Think back to your time in high school. Would it be math? Science? Grammar? History? (I’ll be curious about your personal take. Do share your conversations by emailing me: readers@juliejason.com.)

From my perspective working with families over three decades, I do have my own point of view, which I’m happy to share in a future column after I hear from you. But first, let’s talk about what others are saying -- in this case, a survey of 1,200 U.S. adults released in October by the National Endowment for Financial Education (NEFE), a nonprofit foundation that promotes financial literacy (tinyurl.com/4r2n27hv).

The top two subjects chosen by them? Economic/personal finance education (76% of the subjects polled in mid-August of 2025) and mathematics (75%).

English/language arts was selected by 73%, followed by social studies (64%), science (63%) and computer science/digital literacy (58%).

Among the other categories were health/sex education (50%) and secondary language (21%).

The survey also asked the respondents if they had an opportunity to take a personal finance course while in school. Of those adults (675) who did not have the option for a course, 70% agreed that “the quality of your financial life would be better had you received financial education in school.” Only 11% disagreed, with 19% choosing “not sure.” And that question provides another talking point for adults to share with the younger members at the Thanksgiving table -- the importance of financial education at a young age.

NEFE is an advocate for financial education, stating that its goal is to “advance financial well-being.” NEFE started as part of the College for Financial Planning, then eventually became a separate nonprofit foundation in 1997 (tinyurl.com/3p52uxh3). NEFE also served as a founding member of the Jump$tart Coalition for Personal Financial Literacy (jumpstart.org). Jump$tart’s mission is to advance financial literacy and financial equality.

NEFE’s 2025 legislative review of K-12 financial education requirements pointed out that the number of states that have passed financial literacy high school graduation requirement legislation had increased to 29, meaning that “73% of high school students in the country will receive a financial literacy education before they graduate.” As a comparison, NEFE noted that “only 9% of high school students received a financial literacy education in 2017” (tinyurl.com/ycxca9b8).

While education is a key component of NEFE’s Personal Finance Ecosystem framework for financial well-being (tinyurl.com/bdsdtwrt), another important aspect involves the foundational factors of family and values.

If your Thanksgiving conversation leads to financial literacy education, consider taking part in some other financial literacy “games” that you can share with younger family members. Jump$tart has a section on its website called Reality Check, which allows students to “see the level of income you will need to support the life you imagine” (tinyurl.com/bdc9vh3j). The tool asks questions about housing and food, transportation, clothing and other expenses, and then gives feedback on how much you have to make to support your lifestyle. It also offers a list of jobs that would support the lifestyle you chose.

Investor.gov, a website of the U.S. Securities and Exchange Commission, provides a monthly quiz that tests investing and financial knowledge (tinyurl.com/3tjufrcb). After you complete the quiz, you will receive explanations related to the answers.

Other options include the Junior Achievement Money Quiz, which includes resources at the end of the quiz (tinyurl.com/5arfvzn2), and FINRA’s Financial Knowledge Quiz, which offers explanations for the correct answers (tinyurl.com/2wyr882b).

Holiday gatherings are the perfect time to share personal history and wisdom along with grateful appreciation of friends and family. And perhaps you will agree that humanizing financial literacy education through personal experiences can indeed be fun. Have a Happy Thanksgiving!

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