False: Most Americans Do not Own Stock

I keep hearing pundits in the media saying the majority of Americans do not have money in financial markets. I have heard this many times that if the markets are good, it has almost no impact on most Americans. It only impacts the wealthy.

First off, these are pundits. They are not basing these statements off of anything but their own opinion. I notice they never back it up with any data and nobody questions them about it. If someone did, it would take a matter of seconds to prove they are dead wrong.

The majority of Americans do in fact have money in financial markets. It's a small majority, but still a majority which means most. Granted, they aren't making massive sums of money off their investments but, over the course of a lifetime, with smart life cycle investment strategies they could absolutely make millions.

Anyway, here is a good article from Politifact from 2018 backed up with data that most Americans do participate in financial markets. I encourage anyone who wants to know the truth to check it out.

www.politifact.com...

a reply to: Stupidsecrets

So true. Where do people think their companies pensions are invested? 401k's? The stock market isn't just the rich.

More people would invest and save IMO but it doesn't help when these pundits demean people making them believe the markets are only for the rich so don't even bother. It's nonsense and not true.

Then Nancy Pelosi saying the tax cuts are just crumbs. Well those crumbs are how most people invest over the course of a lifetime. Big things start from small beginnings. It takes decades of "crumbs" and those crumbs grow into large sacks of crumbs. It does not take a lot either. Even $25 a week for someone in their early twenties is great. As long as it's something. It's going to grow. As they earn more then increase it some. It's pathetic and dishonest not encouraging young adults to save and bashing the markets as for the wealthy only.

Is why Socialist concentrate on people under 25. They do not yet understand that pensions and 401k's are tied up in the stock market.

Anyone who knows anything about economics knows that the stock market isn’t an indication of Americas economic health. It’s only an indication of the stock market.

What good are pensions and 401k's if you die before retirement.

- a person that will prolly die young

originally posted by: watchandwait410
What good are pensions and 401k's if you die before retirement.

- a person that will prolly die young

Ummm... you can pass it on to your heirs / family. Wife and I have a fairly sizable nest egg in our 40s. Hoping we can retire in our mid to late 50s. Regardless, between that and life insurance, I know if either my wife or me die earlier than planned, my two kids are set and will be in a good position financially.

This is who GENERATIONAL WEALTH is started. I'm the first in my family to be in a position to actually provide an inheritance and not debt to my kids.

That's another conversation altogether. My point was to point out that most Americans do invest in financial markets or, have some form of investment strategy tied to the markets in some capacity.

originally posted by: underwerks
Anyone who knows anything about economics knows that the stock market isn’t an indication of Americas economic health. It’s only an indication of the stock market.

It is a good indicator.

Regardless of how well the stock market or even broader economy is doing, there will always be a sector that isn't doing well in some capacity. However, a rising stock market generally means the overall economy is doing well.

originally posted by: underwerks
Anyone who knows anything about economics knows that the stock market isn’t an indication of Americas economic health. It’s only an indication of the stock market.

Anyone who knows anything about economics knows that Americans have billions if not trillions in the stock market in the form of a 401K, and Americans have made a ton of money since Trump took office, and stand to lose all gains, and incur massive losses if a left winger ever takes office. Its common sense

originally posted by: watchandwait410
What good are pensions and 401k's if you die before retirement.

- a person that will prolly die young

They are part of your estate. If you don't get it, your heirs will. If you have no heirs, the probate court will find some. Your pension is "vested" after five years (normally) meaning that at least a portion is also part of your estate. Your post here is a perfect example of the ignorance we're talking about.

originally posted by: schuyler

originally posted by: watchandwait410
What good are pensions and 401k's if you die before retirement.

- a person that will prolly die young

They are part of your estate. If you don't get it, your heirs will. If you have no heirs, the probate court will find some. Your pension is "vested" after five years (normally) meaning that at least a portion is also part of your estate. Your post here is a perfect example of the ignorance we're talking about.

Financial and economic illiteracy is one of the biggest issues facing our country. Half these social / political debates wouldn't even be necessary if people understood finance / economics.

Anybody who plays the stock market not as an insider is like a drunk at the holdem table.

originally posted by: watchandwait410
What good are pensions and 401k's if you die before retirement.

- a person that will prolly die young

If you don't think you need either of those things, then don't invest your money in them. They're not mandatory, so spend your money elsewhere. However if you do end up living longer than you anticipate and don't have the funds saved to cover yourself, don't come crying to the government or the people to help fund your life. You had a choice.

This is why I do not subscribe to the ideal of social security for retirement income, for disability absolutely, however if you failed to plan ahead for retirement when younger, tough. If you feel that you can't responsibly invest your money and need someone to do it for you, that should be the role social security plays.

originally posted by: olaru12
Anybody who plays the stock market not as an insider is like a drunk at the holdem table.

Hardly. The average person can simply dollar cost average and buy and hold.... start off investing aggressively and slowly diversifying until you start approaching retirement where you move your portfolio into less risky positions.

Yes, there are ups and downs, but over the long haul the average return is far higher than any other investment vehicle. Wife and I started maxing out 401ks at 22. We are north of a million now in our 40s. At present rate we will have about $3 million or so for retirement, not including home equity or any other windfalls.

Did nothing special other than just make sure we put the money in each paycheck.

To make it true, you just have to add a simple word:

Most Americans don't have money *willingly* in financial markets.

Im sure if people could decide *against* their mandatory 401K, 401A, and 403B contributions, they would...

originally posted by: dothedew
To make it true, you just have to add a simple word:

Most Americans don't have money *willingly* in financial markets.

Im sure if people could decide *against* their mandatory 401K, 401A, and 403B contributions, they would...

401ks are 100% optional. In fact, the biggest issue with them as people refuse to sign up for them and thus lose out.

Investing is time sensitive. The earlier you start the better. No matter how small of an investment you start off with.

If you save just $1/day for 50 years and let it track with the S&P in an ETF, you'd have almost $700k saved.

Let that sink in... just $1/day.

How Much Would You Have it You Saved $1 / Day

Although you take on more risk investing in stocks, the return is much greater — meaning you stand a much better chance of saving enough money for retirement. You would have $698,450 after investing $1 a day for 50 years in an exchange-traded fund (ETF) that tracked the S&P 500, assuming an annual return of 11.23 percent — which was the S&P 500’s average annual return from 1965 to 2014.

a reply to: Edumakated

It's all green for me from here on out....so far so good; But I also like the holdem tournys and track as well.

investorplace.com...

a reply to: Edumakated

That's awesome. Love those kinds of stories. It's just sad young adults are being told the exact opposite, that the market is not their friend and they are weak, meager and powerless against the evil "one pur cent turs"....meh. It's could not be further from the truth.

originally posted by: Stupidsecrets
First off, these are pundits. They are not basing these statements off of anything but their own opinion. I notice they never back it up with any data and nobody questions them about it. If someone did, it would take a matter of seconds to prove they are dead wrong.

It seems you may be a pundit as well, and not basing your "dead wrong" statement off of anything but your own opinion. Even your linked source rates the "most Americans don't own stocks" claim as "half true", yet you claim it's "dead wrong".