Nearly Half of Americans Find Investing Confusing
This entry was posted on 10/23/2007 3:40 PM and is filed under wealth marketing.
NEW YORK,
Oct. 22, 2007 PRNewswire-FirstCall/
— Bankrate, Inc. today published the findings of a national poll which
determined that 47% of Americans who invest their money find the process confusing.
More women admit to being confused (56%) compared to the men who were surveyed
(38%). Respondents stated that the most difficult aspect of investing is
"knowing when to sell" (59%).
"Our survey results show that
many Americans feel uncertain when it comes to investing," said Thomas R.
Evans, President and CEO of Bankrate.com. "The stories and content in our
Financial Literacy series are designed to educate consumers so that they have
the confidence and the knowledge to make the best financial decisions,"
Mr. Evans added.
Key poll findings include:
— Workplace retirement savings plans are the most common place for Americans to invest their money, with 45%
investing in a 401(k), a 403(b) or a 457(b) plan.
— 26% invest their money in individual stocks and bonds at a brokerage firm
— Only 29% of people surveyed
really know how much they are paying in investment fees
— 33% of respondents say they select the investments they make and manage their own portfolio
One alarming finding is that only
32 percent of investors have an IRA and just 23 percent have both an IRA and a
401(k) or similar workplace plan. "Part of proper planning for retirement
means taking full advantage of the tax incentives Uncle Sam provides,"
said Greg McBride, CFA, senior financial analyst at Bankrate.com. "Having
both an IRA and a 401(k) or similar plan at work are important to staying on
track for retirement. Both should be utilized as much as possible," Mr.
McBride stated.
