Gas prices, inflation and retirement savings are among the biggest financial concerns for AmericansA new survey from eMoney Advisor reveals the top three most popular investments in the U.S. to be stocks, cryptocurrencies and mutual funds, although more than a third of U.S. adults do not have any investments or an investment account.
RADNOR, PA. – Feb. 10, 2022 – DIY investing continues to build steam as over a third (34%) of Americans reveal that they manage all of their own investments, according to a recent trend survey carried out by eMoney Advisor (eMoney), a leading provider of technology solutions and services that help people talk about money.
However, the data also shows that financial advisors are valued by many as 38% of U.S. adults who stated that they rely on their financial advisor to manage all of their investments. Additionally, 23% employ a hybrid model – working with a financial advisor and managing some of their own investments simultaneously.
Although many Americans lean on financial advisors for advice, those within their immediate social circle and networks are also very important, with 30% of respondents admitting that they rely on friends and family for financial guidance. Meanwhile, 27% percent rely on their bank or credit union, a quarter (25%) rely on web searches like Google and one-fifth (20%) rely on their employer.
“Americans are craving meaningful and responsible financial advice. With endless access to information available online, it’s difficult to identify what’s sound financial advice and what is not. It’s important for those seeking financial guidance to find credible sources. If you don’t have a financial advisor or planner, turning to your bank or credit union is a smart decision. And more and more, people are turning to their employer for both financial guidance and resources to help them make informed financial decisions,” said Celeste Revelli, CFP, director of financial planning at eMoney.
Top Reasons Americans Manage Their own Investments and do not Work with a Financial Advisor
There are many reasons why U.S. adults don’t work with an advisor and instead manage their own investments. The highest-ranked motive is because they feel confident handling their own finances (33%), according to eMoney’s survey. This is closely followed by people feeling that financial advisor fees are too high and that they don’t want someone else in control of their money – both coming in at 32%. Other hindering factors include feeling embarrassed about one’s financial situation (18%) and the lack of digital tools/platforms available to engage with financial advisors (18%).
The Most Common Types of Investments and Investment Accounts
Whether U.S. adults are working with an advisor or not, almost two thirds (65%) have investments and/or investment accounts. The most popular investments Americans hold are:
- Stocks (48%)
- Cryptocurrencies (43%)
- Mutual funds (41%)
- Real estate (36%)
- Bonds (36%)
Meanwhile, the most popular types of accounts Americans store their investments in are ranked as follows:
- Brokerage account (59%)
- Employer-sponsored retirement account (56%)
- Individual retirement account (53%)
- Health savings account (35%)
- Money market fund (35%)
Conversely, more than one-third (35%) of adult Americans do not have an investment account or any investments. The data shows that this is true for more women (40%) than men (30%).
Top Concerns for 2022
Gas prices take the top spot as biggest concerns for 2022, followed closely by paying their bills and inflation. The wide array of concerns for the year ahead indicates the need for more credible financial planning, guidance and education.
- Gas prices (43%)
- Paying my bills (42%)
- Inflation (40%)
- Retirement savings (33%)
- Taxes (32%)
“Major economic issues are affecting Americans every day, from high gas prices to inflation. Concerned about their families’ futures, people now more than ever are looking for ways to prioritize their responsibilities and achieve financial peace of mind. The demand for financial advice is growing, and as a result, there’s a tremendous opportunity for financial advisors and other providers of financial resources – such as employers – to focus on educating people on the topics that matter most to them, whether that’s investments, day-to-day concerns, or longer-term needs,” Revelli said.
To read more about findings from eMoney’s Investor Trend Survey, please visit the Heart of Advice blog here.
About eMoney Advisor, LLC
eMoney Advisor, LLC (“eMoney”) provides technology solutions and services that help people talk about money. Rooted in comprehensive financial planning, eMoney’s solutions strengthen client relationships, streamline business operations, enhance business development and drive overall growth. More than 96,000 financial professionals across firms of all sizes uses the eMoney platform to serve more than 4.5 million households throughout the U.S. For more information, please visit: emoneyadvisor.com.