2022 Investing Trends Survey Shows DIY Investors Continue to Grow, But Financial Advisors Remain a Mainstay
– Gas prices, inflation and retirement savings are among Americans’ top financial concerns
– The three most popular investments in the United States are stocks, cryptocurrencies and mutual funds
– More than a third of American adults have no investments or investment accounts
RADNOR, Pa., February 10, 2022 /PRNewswire/ — Personal investing continues to gain momentum as more than a third (34%) of Americans reveal that they manage all of their own investments, according to a recent trend survey 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 38% of American adults who said they rely on their financial advisor to manage all of their investments. Additionally, 23% use a hybrid model: working with a financial advisor and simultaneously managing some of their own investments.
Although many Americans rely on financial advisors for advice, those in their immediate social circle and networks are also very important, with 30% of respondents admitting they rely on friends and family for financial advice. Meanwhile, 27% rely on their bank or credit union, a quarter (25%) rely on web searches like Google and a fifth (20%) rely on their employer.
“Americans crave meaningful and responsible financial advice. With unlimited access to information available online, it is difficult to identify what is good financial advice and what is not. It is important for those who seek financial advice from credible sources. If you don’t have a financial advisor or planner, turning to your bank or credit union is a smart move. And increasingly, people are turning to their employer for both financial advice and resources to help them make informed financial decisions,” said Celeste RevelliCFP, director of financial planning at eMoney.
Top Reasons Americans Manage Their Own Investments and Don’t Work With a Financial Advisor
There are many reasons American adults don’t work with an advisor and instead manage their own investments. According to the eMoney survey, the most cited reason is that they feel confident managing their own finances (33%). This is closely followed by people who feel that financial adviser fees are too high and that they don’t want anyone else to control their money – both hitting 32%. Other hindering factors include feeling self-conscious about one’s financial situation (18%) and lack of digital tools/platforms available to engage with financial advisors (18%).
The most common types of investments and investment accounts
Whether US adults work with an advisor or not, nearly two-thirds (65%) have investments and/or investment accounts. The most popular investments that Americans hold are:
Mutual funds (41%)
Real estate (36%)
Meanwhile, the most popular types of accounts in which Americans store their investments are ranked as follows:
1. Brokerage account (59%)
2. Employer-sponsored retirement account (56%)
3. Individual Retirement Account (53%)
4. Health savings account (35%)
5. Money Market Fund (35%)
Conversely, more than a third (35%) of American adults do not have an investment or investment account. The data shows that this is true for more women (40%) than men (30%).
Main concerns for 2022
Gas prices rank first among the top concerns for 2022, followed closely by paying their bills and inflation. The wide range of concerns for the coming year point to the need for more credible financial planning, guidance and education.
1. Gas prices (43%)
2. Pay my bills (42%)
3. Inflation (40%)
4. Retirement savings (33%)
5. Taxes (32%)
“Major economic issues affect Americans every day, from high gas prices to inflation. Concerned about the future of their families, people are looking more than ever for ways to prioritize their responsibilities and achieve peace of mind. The demand for financial advice is growing, and as a result, financial advisors and other providers of financial resources – such as employers – have a tremendous opportunity to focus on educating people about the topics that matter to them. matter most, whether it’s investments, day-to-day concerns, or longer-term needs,” Revelli said.
To read more about the results of eMoney’s Investor Trends Survey, please visit the Heart of Advice blog.
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 customer relationships, streamline business operations, improve business development and drive overall growth. More than 96,000 finance professionals in businesses of all sizes use the eMoney platform to serve more than 4.5 million homes across the United States. For more information, please visit: emoneyadvisor.com.
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SOURCE Electronic Money Advisor