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Some Americans believe real estate And gold are the best long -term investments. The advisers think it's wrong.
About 37% of American adults interviewed consider real estate as the best investment for the long term, according to a new Gallup report, a global analysis and advice cabinet. This figure is roughly unchanged from 36% last year.
Gold was the second most popular choice, with 23% of the respondents interviewed. It's five points higher than last year.
To compare, only 16% trusted the common investment shares or funds as the best long -term investment – a drop in six percentage points of the 2024 report, Gallup revealed.
The company interviewed 1,006 adults in early April.
Financial advisers warn that this preference probably concerns buzz that fundamentals. Be careful to get caught in the media, said the certified financial planner Lee Baker, founder, owner and president of Claris Financial Advisors in Atlanta.
Carolyn McClana, CFP and founder of Life Planning Partners in Jacksonville, Florida, agreed: “People always continue what is hot, and that's the stupid thing you can do.”
Here is what investors should know about gold and real estate, and how to integrate them into your portfolio.
Why gold and real estate are attractive
Baker understands why people like the idea of real estate and gold: the two are tangible objects compared to actions.
“You buy a house, you can see it, feel it, touch it. Your investment in stocks may not feel real,” said Baker, CNBC member Financial advisor advice.
While the preference for gold has increased this year, the share of Gallup respondents who think that it is the best long -term investment is still lower than the record level of 34% in 2011. At the time, gold investors sought refuge in the middle of high unemployment, a paralyzed housing market and volatile actions, noted Gallup.
Gold prices tend to increase this spring. Gold price hit a All high times more than $ 3,500 $ at the end of April. A year ago, prices were about $ 2,200 to $ 2,300 per ounce.
Real estate has also aroused more interest in recent years in the midst of high demand from buyers and accelerate prices. The median selling price for an existing house in the United States in March was $ 403,700, according to on bank bench. It is down compared to the record summit of $ 426,900 in June.
Why stocks are the best bet
Although real estate and gold are two assets that can assess in value over time, the stock market will generally increase at a much higher rate, according to experts.
The total annualized return on S&P 500 shares is 10.29% over the 30 -year period ending in April, according to direct Morningstar data. During the same period, the total annualized return for real estate is 8.78% and for gold, 7.38%.
MCCLANAHAN also stresses that unlike gold and real estate, actions are diversified assets, which means that you are watering your species compared to the concentration in a single investment.
“When you talk about stocks, you don't talk about a big asset,” she said. “You are talking about thousands and thousands of companies that do different things.” MCCLANAHAN is also a member of CNBC FA advice.
Although the tangibility of gold and real estate can give a feeling of comfort, it also makes them illiquid or difficult to withdraw, said McClanahan.
How to include gold, real estate in your wallet
If you are among the Americans who want an exhibition For real estate or gold, there are different ways to do so, say the experts.
For real estate, financial advisers say that investors could examine Real estate investment trusteeAlso known as the FPI, or consider investments that bring together real estate stocks, such as the funds negotiated on the stock market.
A FPI is a listed company which invests in different types of residential or commercial real estate producing income, such as apartments or office buildings.
In many cases, you can buy FPI shares listed on the stock market as you would for a title or shares of a common FPI placement fund or a negotiated grant fund. Reit investors generally earn money through dividend payments.
The common real estate investment funds and the stock market negotiated funds will generally invest in several FPIs and the real estate market largely. It is even more diverse than investing in a single FPI.
Anyway, you are exposed to real estate without focusing on a single property, and this will help diversify your wallet, said McClanahan.
Similar to gold – instead of storing Bordeaux d'Or, plan to invest in Now through ETF.
In this way, you avoid having to face a place to store or hide physical gold, you wash the stress that it has stolen or make sure that it is covered by your home insurance, according to experts.
“With the FNB, you actually get the value of the return of gold, but you don't really have it,” said McClanahan.
