Saturday, April 13, 2024

Americans Think This Investment Is the Best Road to Riches

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Anyone who dreams of future wealth faces a difficult choice: Which investment offers the best chance of getting rich?

There is no surefire answer, but Americans certainly have strong opinions on the topic. Recently, LendingTree asked 2,000 people ages 18 to 77 to name the investment that is most likely to lead to riches.

Here are the top answers they gave.

1. Real estate

Home in Atlanta
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Survey respondents who:

  • Said this type of asset is a good wealth-building strategy: 45%
  • Are investing in this type of asset: 14%

As just about everyone knows, home values have exploded from coast to coast in recent years. Those who own homes have seen their equity soar, which might account for why real estate tops this list.

If you plan to join these homeowners soon, stop by the Money Talks News Solutions Center and find the best mortgage.

2. Stock market

Bull and bear
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Survey respondents who:

  • Said this type of asset is a good wealth-building strategy: 32%
  • Are investing in this type of asset: 33%

Americans might be right that real estate will be the best bet to building wealth in the future. However, that has not been true in the past.

The stock market traditionally has generated long-term returns of about 10% annually, making it the best place to have put your money over the past century.

3. Gold

Gold bars
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Survey respondents who:

  • Said this type of asset is a good wealth-building strategy: 25%
  • Are investing in this type of asset: N/A

Gold has been an alluring store of wealth for thousands of years. It has risen and fallen in value over time and has offered reasonable returns over the long haul. Gold often performs best during periods of financial upheaval.

LendingTree did not report how many of the survey respondents had actually chosen gold as an investment.

Other wealth-building strategies

Series I U.S. government savings bonds
Jonathan Weiss / Shutterstock.com

Survey respondents also mentioned the following candidates among the best wealth-building strategies:

  • Savings bonds: 21%
  • Cash: 21%
  • Tax-advantaged retirement accounts: 16%

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