Financial Crisis Survey

Ten Years After the Financial Crisis, Most Americans Still Aren’t Close to Finding Financial Freedom

New survey reveals lasting impact of global financial meltdown.

While U.S. stock markets have more than doubled since the global financial crisis began in 2007, many Americans continue to struggle financially, according to a recent survey conducted by Trading Academy, a leader in investing and trading education.

The survey of 1,013 American adults looked at the lasting impact of the crisis.

How Has the Financial Crisis Impacted Retirement Goals?

Many Americans aren’t confident they’re going to reach their retirement goals.
Although the U.S. economy is growing consistently, unemployment is low and stock markets continue to hit all-time highs, more than 30% of Americans are unsatisfied with their income. More troubling, only 38% of Americans are confident or very confident that they will hit their retirement goals.

The Trading Academy point of view: With wages stagnant or growing only slightly, many Americans are finding they aren’t generating the income they need to live the life they desire. Many people are working long hours just to maintain their current lifestyles without getting ahead. Some are turning to additional part-time work and spending less time with their families just to scrape by. Your salary might be out of your control, but learning the skills to trade securities to earn income and invest for your future is completely within your control. More Americans need to learn these valuable skills that can empower them to live the life they want to live, and achieve their goals.

How Has the Financial Crisis Impacted Savings Goals?

Americans are too dependent on their savings accounts, or worse, aren’t saving at all.
Nearly two-thirds of Americans aren’t actively contributing to their retirement. More than 40% say they aren’t investing any money, and 30% don’t plan to do so within the next year. This means many people may retire on little more than social security income or find themselves working long into their golden years.

The Trading Academy point of view: Not only are people not on the right track for retirement, but the little they are putting away is not generating the returns they want and need. The average American family will pay $150,000 in 401(k) fees over their lifetime. Most 401(k) accounts are composed primarily of managed mutual funds, of which only 14% match or beat the markets. With little savings, high fees and underperforming investments, it isn’t surprising that many people are unprepared for retirement. Too many people rely on high-fee products from big financial institutions for saving and investing. They don’t realize how much of their money is being kept by the bank or brokerage for management fees and other costs. It’s time to learn to fund your own dream retirement, and stop contributing so much to the accounts of the banks, brokers and financial advisors. Whose best interests do you think they have in mind?

How Has the Financial Crisis Impacted Investments?

Since the financial crisis, markets are up big, but Americans’ investments have not kept up.
The S&P 500 Index is up more than 250% since the Great Recession, but Americans who were impacted by the crisis have captured only a small fraction of those gains. In fact, only 17% of Americans whose nest egg was impacted by the financial crisis say their retirement savings account is up more than 50%.

The Trading Academy point of view: Forget everything you’ve heard about how blindly sticking with the broader stock market through good times and bad is your best bet. Sure, almost everyone invested in the stock market is making money when the market is up 250%. But are you in the majority that has seen only a fraction of these historic market gains? Do you know what your returns were over the past 10 years? The markets are designed to move up because large financial firms consistently use Americans’ 401(k) funds and other consumer investments to buy stocks. But the survey numbers prove that the average American doesn’t earn nearly as much as they need to. Wall Street firms know how to take advantage of up markets, while the average investor generally only enjoys a fraction of the overall market moves. Wall Street knows how to protect itself when the market crashes, while average investors often lose a big portion of their retirement nest egg. Investors need to learn how to invest like the banks and institutions and stop listening to what they tell you to do. It turns out that what they do with their own money and what they tell investors to do with their own money are often very different.

You Can Protect Your Investments When the Market Is Down

Too many Americans don’t understand that history can repeat itself.
Less than half (46%) of Americans are concerned about another financial crisis. And while one in four (24%) are scared about losing their money in the event of another crisis, the survey suggests that a big chunk of them aren’t worried enough.

The Trading Academy point of view: Markets are cyclical, prone to frequent surges and crashes. Investors need to be prepared for both. It’s important to recall that America has experienced two market crashes in the past 20 years. A stock market crash can deplete retirement accounts and bring layoffs and other financial hardships. These events cause many to exhaust their savings just to pay the bills, and can create a devastating financial impact on you and your family. Wall Street firms have strategies to not only protect their assets, but to prosper in a down market. Do you? Investors are well advised to learn strategies that can help them protect and grow their money whether the markets are up, down or flat. Because over time, the market will move in all of these directions, repeatedly.

Learn what you can do to protect your financial future. Get started by attending a complimentary Half-Day Class at Online Academy. Click here to see upcoming courses in your area.