Which financial products will you choose when you decide where to invest?
Financial products are the new gold, and if you’ve ever been a bit confused by the choice of what you should buy, you’re not alone.
According to the latest research from consulting firm Deloitte, consumers are now spending twice as much on financial products compared to the previous year.
In its latest annual survey of 1,200 Americans, Deloise found that Americans are spending $4,400 on personal finance products and $8,800 on retirement and investment products.
These products are often seen as the ultimate financial tool, and they’re typically used for all sorts of financial decisions, but now it seems the choices are becoming even more diverse.
According, the number of Americans who choose to use personal finance has increased from just over a third of Americans in 2017 to just over half of Americans now.
For example, the proportion of Americans choosing to invest in stocks has increased to 22%, while the proportion choosing to take out a home equity loan has gone up from 18% to 22%.
In other words, the choice is becoming more and more diverse now, with a significant portion of Americans looking to diversify their portfolio of financial products.
With this in mind, how do you know which financial products to choose?
To help you decide what’s right for you, here are five financial products that are going to be the cornerstone of your financial life.
Credit cards: One of the first financial products you will likely choose is a credit card, according to Deloist.
The survey found that almost a third (32%) of Americans chose a credit cards in 2017, while 16% chose a prepaid card.
The rest of the population used either an ATM card or a cash or check payment card.
Some of these products may seem to be more appealing than others, but the vast majority of Americans are going for the convenience factor.
These types of products include credit cards that are loaded with a range of services, like auto insurance, travel insurance, and more.
Home equity loans: Another popular type of financial product is home equity loans.
According the survey, over a quarter (26%) of American households now have a home ownership interest in their home.
While the majority of people are looking for this type of financing to diversified their portfolio, the majority (54%) of consumers are also looking for a financial product that can make this option accessible to them.
These are the types of loan options that can help you diversify your portfolio of investments and are typically considered “safe.”
Personal financial planning: One major reason consumers are going with personal finance is because it is more convenient.
According Deloitt, over 60% of Americans said that they would prefer to pay for their mortgage with cash and a credit or debit card rather than a bank loan, while just over two-thirds (65%) said they would rather pay for a home loan with a cash payment.
The financial products most commonly cited for their convenience included a home mortgage payment, a loan with no down payment and no downpayment bonus, and a home payment option.
Investment options: While the number one financial product consumers are using is their home equity line of credit, many Americans also use personal investment products to diversate their portfolio.
According a recent Deloiste survey, nearly one-third (31%) of adults reported using investment products when making a financial decision.
A further 22% of consumers said they used a combination of a home investment and savings account when making financial decisions.
These investments are often referred to as “personal savings” or “savings accounts.”
Investing in stocks: Investors can diversify a portfolio of stocks by choosing to buy shares of the companies they are interested in, according Delopert.
The majority of American adults (72%) chose stocks as the primary financial product they chose for investing, while the majority chose mutual funds, ETFs, or mutual funds to diversivate their portfolios.
However, the same majority (59%) of households chose bonds as their primary financial investment, with more than half (54% of households) choosing a bond-based portfolio.
These investment products can help diversify the portfolio and are generally viewed as safe, but there are also options that are more appealing to consumers.
For instance, Delos survey found more than two-in-three (68%) Americans prefer a mutual fund, while one-in/two (31) chose a bond.
However with these products, investors should also keep in mind that the majority have more financial freedom and flexibility than those who opt for personal financial planning.
For those who choose a personal financial plan, a lot of people opt for an individual retirement account (IRAs) or a Roth IRA, which are considered more secure options.
This could be due to the fact that a Roth 401(k) can be transferred into a traditional IRA, but it may also be because of the higher tax consequences.
With all of these factors in mind and the wide array of financial plans