DAYTON — Many people rely on a 401-K at work to save up for retirement, but a new study shows people are using other methods to invest to add to their nest egg.
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As reported on News Center 7 at 5:30 p.m., on the heels of federal job cuts and possible tariffs on goods, the stock market of late has been a bumpy ride.
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Americans are looking for ways to boost what their 401-K contributions are already setting aside for retirement.
One Miami Valley Resident, Kelly, said she eventually plans on adding to her 401-K contributions with stock investments, but as of for now it’s all about putting anything extra into savings.
“I’ve been looking into doing some stocks and investing in that, but haven’t gotten there yet,” Kelly said. “Just building on that and hoping for the future for my kids to do the same thing, too.”
A new survey from Bankrate reveals the stock market is currently the preferred long-term investment for more than a quarter of Americans.
That is followed by real estate with 24%, cash investments like savings or CDs, and then precious metals and cryptocurrencies.
James Royal, an Investment Analyst with Bankrate, says the percent performance of the market has resulted in more interest in stocks.
“When we did the survey in 2022 real estate was the top pick, and we had just come off an area where interest rates and mortgage rates were very low,” Royal said. “That made investing in real estate much more feasible, affordable, and attractive for Americans.”
While certain stocks can sometimes result in extremely large short-term swings, Royal says the most important thing to remember in any investment is making the best decision for you and staying in it for the long haul.
“You don’t want to access that money potentially for years and years and years and so that’s, that’s the way you get these attractive long-term returns,” Royal said. “Is sort of ignoring that short-term noise, that short-term volatility in the pursuit of that long term.”
Royal also added that if retirement savings is the primary goal then a company 401-K is the best bang for your buck with tax-deferred options and company contributions.
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