Latest news with #LifePlanningPartners
CNBC
08-05-2025
- Business
- CNBC
Americans believe real estate, gold are the best long-term investments. They're wrong, advisors say
Some Americans believe real estate and gold are the best long-term investments. Advisors think that's misguided. About 37% of surveyed U.S. adults view real estate as the best investment for the long haul, according to a new report by Gallup, a global analytics and advisory firm. That figure is roughly unchanged from 36% last year. Gold was the second-most-popular choice, with 23% of surveyed respondents. That's five points higher than last year. To compare, just 16% put their faith in stocks or mutual funds as the best long-term investment — a decline of six percentage points from 2024's report, Gallup found. The firm polled 1,006 adults in early April. Here's a look at other stories impacting the financial advisor business. Financial advisors caution that this preference is likely more about buzz than fundamentals. Be careful about getting caught up in the hype, said certified financial planner Lee Baker, the founder, owner and president of Claris Financial Advisors in Atlanta. Carolyn McClanahan, a CFP and founder of Life Planning Partners in Jacksonville, Florida, agreed: "People are always chasing what's hot, and that's the stupidest thing you could do." Here's what investors need to know about gold and real estate, and how to incorporate them in your portfolio. Baker understands why people like the idea of real estate and gold: Both are tangible objects versus stocks. "You buy a house, you can see it, feel it, touch it. Your investment in stocks perhaps doesn't feel real," said Baker, a member of CNBC's Financial Advisor Council. While the preference for gold grew this year, the share of Gallup respondents who think it's the best long-term investment is still below the record high of 34% in 2011. Back then, gold investors sought refuge amid high unemployment, a crippled housing market and volatile stocks, Gallup noted. Gold prices have been trending upward this spring. Spot gold prices hit an all-time high of above $3,500 per ounce in late April. One year ago, prices were about $2,200 to $2,300 an ounce. Real estate has also drawn more interest in recent years amid high demand from buyers and accelerating prices. The median sale price for an existing home in the U.S. in March was $403,700, according to Bankrate. That is down from the record high of $426,900 in June. While real estate and gold are two assets that can appreciate in value over time, the stock market will generally grow at a much higher rate, experts say. The annualized total return of S&P 500 stocks is 10.29% over the 30-year period ending in April, per Morningstar Direct data. Over the same time frame, the annualized total return for real estate is 8.78% and for gold, 7.38%. McClanahan also points out that unlike gold and real estate, stocks are diversified assets, meaning you're spreading out your cash versus concentrating it into one investment. "When you talk about stocks, you're not talking about one big asset," she said. "You're talking about thousands and thousands of companies that do different things." McClanahan is also a member of the CNBC FA Council. While the tangibility of gold and real estate may provide a sense of comfort, it also makes them illiquid, or difficult to cash out, McClanahan said. If you are among the Americans that want exposure to real estate or gold, there are different ways to do it wisely, experts say. For real estate, financial advisors say investors might look into real estate investment trusts, also known as REITs, or consider investments that bundle real estate stocks, like exchange-traded funds. An REIT is a publicly traded company that invests in different types of income-producing residential or commercial real estate, such as apartments or office buildings. In many cases, you can buy shares of publicly traded REITs like you would a stock, or shares of a REIT mutual fund or exchange-traded fund. REIT investors typically make money through dividend payments. Real estate mutual funds and exchange-traded funds will typically invest in multiple REITs and in the real estate market broadly. It's even more diversified than investing in a single REIT. Either way, you're exposed to real estate without concentrating into a single property, and it will help diversify your portfolio, McClanahan said. Similar to gold — instead of stocking up on gold bullions, consider investing in gold through ETFs. That way you avoid having to deal with finding a place to store or hide physical gold, you wash off the stress of it getting stolen or making sure it's covered by your home insurance policy, experts say. "With the ETF, you actually get the value of the return of gold, but you don't actually own it," McClanahan said.
NBC News
25-03-2025
- Business
- NBC News
50% of parents financially support adult children, report finds. Here's how much it costs them.
To get by these days, more young adults turn to a likely source for help: their parents. For the first time, 50% of parents with a child older than 18 provide them with at least some financial support, according to a new report by That's up from 47% last year and 45% in 2023. From buying food to paying for a cellphone plan or covering health and auto insurance or even rent, these parents are shelling out about $1,474 a month, on average, the report found — a three-year high. 'Adulting is expensive,' the report notes. Many experts argue it's harder today for young adults to make it on their own. In addition to soaring everyday expenses and housing costs, millennials and Generation Z face other financial challenges their parents did not at that age. Not only are their wages lower than their parents' earnings when they were in their 20s and 30s, after adjusting for inflation, but they are also carrying larger student loan balances, many reports show. But by other measures, young adults are doing well. Compared with their parents at this age, Gen Zers are more likely to have a college degree and work full time. Plus, many millennials have more saved for retirement than they did just a few years ago, after reaping the benefits of positive market conditions. Yet, roughly 1 in 3 adults ages 18 to 34 in the U.S. live in their parents' home, according to U.S. Census Bureau data. 'Housing is a big issue and parents are helping more and more with rent and home purchases,' said Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners in Jacksonville, Florida. 60% of parents risk their own financial security In addition to the monthly expense, supporting grown children can come with a long-term cost. More than 60% of parents said they have sacrificed their own financial security for the sake of their kids, also a jump from previous years, found. The site polled more than 1,000 parents of adult children in February. Further, about 18% of parents supporting adult children said those financial contributions could continue indefinitely. 'They don't see an end in sight,' said Beth Klongpayabal, the study's lead data analyst. As a general rule, you should set aside money for your own retirement and emergency fund first, McClanahan said. She also suggests parents set parameters to help ensure children are using the money they gift wisely. 'We are careful to make sure parents don't gift so much to put themselves in peril,' said McClanahan, who also is a member of CNBC's Advisor Council.
