01.03.23

Young, Brash and Wrong: FINRA Study Profiles Investing Risks

by: Steven Morelli

According to a study by the Financial Industry Regulatory Authority, investors are putting more of their money into individual stocks and exchange-traded funds (ETFs) and less into insurance products. Besides stocks and ETFs, investors were moving money into real estate investment trusts, penny stocks and other risky products. Whole life insurance dropped from 38% in 2018 to 35% in 2021. Annuities dropped from 33% in 2015 and 2018 to 29% in 2021. The study noted that the new investors might be less equipped to handle a shock, but indicators show that younger people are still getting into the game. For example, even though Fidelity Investments’ asset levels fell in its third quarter report, young investors opened almost half of the firm’s new accounts, according to media reports.

Read the full article on Insurance News Net