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How Profitable Is It To Invest Personal Funds In The USA

Why is the investment culture so strong in the U.S., and buying securities is commonplace? See the article for details.

Why do Americans invest in the United States?

More than half of U.S. households have some investment in the stock market

Debt management. Paying off the loans is a new American dream. Brokers help potential investors to close loans with high interest, while saving small amounts for the future.

Budget management. Financial stability is about earning more than you spend and saving for unforeseen expenses. The goal of the strategy is to have 15% of the budget free to invest.

Pension savings. Regular replenishment of pension accounts and multiplication of funds by means of investments.

Americans use different tools to achieve these goals.

Equities are the most popular investment tool in the U.S.

One in two Americans uses stock market instruments to increase their capital. This is no exaggeration – according to a survey by Gallop, in 2016, 52% of the U.S. population had assets in the form of securities. 

The U.S. stock market is extensive, transparent and well regulated. Many ordinary people (students, housewives, teachers) invest in this instrument. This makes the stock market healthier: stocks are well traded and can be sold quickly. Beginner investors set themselves a long-term financial goal and entrust their funds to a personal broker. Active investme is when a person chooses the trading floors, assets, himself buys shares (remember that the choice of instruments at first is limited), bonds or trying to catch the benefit of currency pairs in “Forex”.

Investing Is Risky and Unethical and You Should Do It Anyway

Interest on bank deposits in U.S. banks is ridiculously low, and investments at the stock exchange consistently bring 5-15% per year – that is, it is really profitable to invest in stocks.

Of course, trading in stocks involves risk. If assets are not managed properly or the market collapses, you can lose your money. The risk fee is the highest average return on shares in the last 90 years – 11.5%. This is the highest result among all types of investments in the U.S. market. Conservative investment strategies and the services of financial advisers and personal brokers help to reduce risks.

“Investing is the right thing to do”. This idea is constantly broadcasted to a wide audience in the USA. Stock market reports appear on TV channels as often as the weather forecast. The media tells personal stories of people who made a fortune on the purchase and sale of securities. After the market collapsed in 2008, there was some mistrust of stocks among younger audiences, but on the whole, this investment instrument is confidently leading.

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  • In America, the culture of investment is well developed: 35% of the population invests in shares, 25% in real estate, and 22% of the population invests in pension savings.
  • The most common investment goals are repayment of loans, financial well-being and pension savings.
  • The average return on investment in shares is 11.5%.
  • New instruments are also being developed: crowdfunding of real estate and micro-investments.
  • Americans use conservative instruments (bank deposits, bonds and non-financial assets) as an airbag.

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