New Poll Reflects Americans’ Preferred Long-Term Investment Strategies
By Patty Gallagher
There is no one-size-fits-all solution when it comes to long-term investment planning. Every individual, and every family, has different needs and wants, expenses and assets. As such, it can be difficult to get the right context to help you make an informed decision that will suit your needs. And while you cannot make your financial decisions based on what works well for others, it certainly helps to understand how the rest of the community is choosing to plan for the long haul.
If you’re a Milford or Stratford resident thinking about where your assets would best serve your long-term savings strategy, consider the results from a recent Gallup poll which ranked Americans’ favored long-term investment vehicles.
Let’s take a closer look at the numbers:
Real Estate: According to the Gallup poll, Americans seem to have regained their confidence in the real estate market following the Great Recession of 2008. In the past six years, the percentage of poll respondents choosing real estate as their preferred long-term investment has climbed from 19 to 34 percent—making it the most popular of all poll choices.
Stocks and Mutual Funds: Similarly, consumer confidence in the stock market appears to have recovered from the Great Recession as well. Today, 26 percent of survey respondents cited that their go-to method for long-term savings was the stock market, up from just 17 percent in 2011.
Gold: Oftentimes, people will invest in precious metals like gold or silver when the stock market is turbulent and unpredictable. Such was the case following the Great Recession—in 2011, gold was by far the most popular long-term investment vehicle for survey respondents, with 34 percent making it their go-to option. But as the economy has rebounded, that number is now down to just 18 percent.
Savings Accounts and CDs: While the return on your investment won’t always be as high as with other vehicles, savings accounts and CDs present a conservative and guaranteed rate of return. Interest rates, however, have remained flat in the subsequent years following the Great Recession, which has resulted in little change in the popularity of these types of investments. In 2011, 14 percent of Gallup poll respondents cited savings accounts and CDs as their preferred long-term savings option. Today, that number still sits at 13 percent, largely unchanged.
Bonds: While all the other survey options mentioned in the Gallup poll all gained in favorability (besides gold), the one investment vehicle which lost ground was bonds. Bonds were more popular at the height of the Great Recession during less certain times, but now that the economy has leveled off, bonds have become less of a priority for a majority of Americans.
If you’re still uncertain about where your long-term savings should go, you’re not alone. Clearly, Americans’ saving preferences are varied and subject to change as their lives do. But there’s no reason to go it alone: The Milford Bank has been helping families save for their futures for generations. If you’re a Milford or Stratford resident looking to grow your retirement account, stop by an office location in your area today. You can also learn more by checking out our Online Learning Center.