A recent report has shed light on the disparities in investment strategies based on income levels. The report suggests that lower-income investors may need more support with their investment decisions, particularly when it comes to maintaining regular contributions and sticking to a trading decision without emotional influence.
According to the report, lower-income investors often opt for riskier strategies, such as trying to time the market. This is in contrast to higher-income investors, who tend to prefer a more cautious approach like dollar-cost averaging. The data revealed that respondents earning less than $75,000 a year were more likely to try to time the market, while those earning over $150,000 favored dollar-cost averaging.
It is important for investors to be aware of these trends and understand how their income level may influence their investment decisions. By being mindful of their financial situation and seeking support when needed, investors can make more informed choices that align with their long-term goals.
