AI Finance Awards 2018

Acquisition International - 2018 International Finance Awards 15 AICPA Survey decision making in their household (32 percent) to typically make high risk investments. “Before Americans invest their hard-earned money, it is important they take control of their financial future and do some research. While no one can say with certainty whether an investment will go up in value, taking the time to evaluate past performance can give some insight into future possibility,” added Anton. “A well-researched and properly diversified portfolio that matches an investors risk tolerance will give confidence to stay focused on long-term strategy and protect from the temptation to sell during short-term price swings.” A steady annual return (36 percent) was the top investment decision consideration Americans who are involved in these decisions cited in the survey, followed closely by understanding investment fundamentals such as risk level and expected return (35 percent). Previous performance of an investment (29 percent) and liquidity (27 percent) were also in the top three considerations of many. And notably, a quarter of these Americans (26 percent) cited volatility as a top investment decision consideration. Investing in financial markets is inherently risky and times of market volatility are difficult to navigate without an investment plan in place. Of those Americans who are at least somewhat involved in household investment decision making, six in ten (59 percent) do not plan on making an investment in the next year. Here is the mix of investments for the 35 percent of Americans who have said they currently invest or are planning on investing in the next year; real estate (19 percent), 401(k) (19 percent), and IRA or Roth IRA (17 percent) were the most frequently cited. These are followed by mutual funds (16 percent), individual stocks (16 percent), CDs (11 percent), government bonds (10 percent), ETFs (8 percent), and cryptocurrency (five percent). For Americans looking for investor education resources, the AICPA’s 360 Degrees of Financial Literacy website has numerous free resources available including an introduction to the markets, a term glossary, articles on investing basics and a collection of investment calculators. INVESTING VS SPECULATING