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How Investment Goals Vary by Country and Age

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How Investment Goals Vary by Country and Age

How Investment Goals Vary by Country and Age

It goes without saying that investors want to see their money grow.

However, it turns out that why investors want their money to grow changes considerably, depending on who you are talking to.

Investment Goals by Geography

Today’s infographic from Raconteur first shows why people invest based on country of residence.

In the following table, we’ll show selected data to illustrate an interesting contrast between North American, Asian, and European cultures:

CountryPrimary Investing GoalPercentage
CanadaSaving for retirement78%
USASaving for retirement71%
UKSaving for retirement71%
Hong KongSaving for retirement48%
GermanySaving for retirement40%
FranceSaving for retirement27%
UAESaving to start a business31%
ChinaBeneficiaries / estate planning42%

In Canada, the United States, and the United Kingdom, saving for retirement is the primary investment goal for 70% or more of all respondents. However, in Europe and Asia, there is a much wider diversity of investment goals.

In Germany and France, for example, close to a quarter of respondents mentioned that saving for an emergency was their primary goal, behind saving for retirement. Meanwhile, in the UAE and in China, the primary investment goal was not retirement – it was instead saving to start a business (UAE) and setting up family and/or beneficiaries for success (China).

Goals by Generation

It’s not just geographical boundaries, the level of economic development, and the local culture that impacts investment goals.

Another factor is generational: Baby Boomers, Gen Xers, and Millennials are at very different stages of life, and each generation has their own quirky preferences, anyway.

Statement (I want to…)Highest AgreeanceLowest agreeance
Retire comfortablyBoomersMillennials
Make sure money is safeBoomersMillennials
Preserve as much wealth as possibleBoomersMillennials
Pass on wealth to my heirs and othersMillennialsGen Xers
Ensure I have funds to pay for important eventsMillennialsBoomers
Invest at the lowest cost possibleBoomersGen Xers
Have the best advice possible and am willing to payMillennialsBoomers
Retire earlyGen XersBoomers
Not miss out on market opportunitiesGen XersBoomers
Choose riskier investments to build wealth fastMillennialsBoomers

Not surprisingly, as people get older, their goals shift away from making immediate big-ticket purchases, and holding riskier investments for a higher rate of return. Later on in life, goals are more focused on retirement and maximizing wealth.

That said, there are some anomalies in the above data that are interesting.

For example, Millennials – not Baby Boomers – are most concerned about building wealth to pass onto their heirs. Finally, it is the Millennials that are willing to pay the most for investment advice, in order to get the best possible result.

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Markets

40 Stock Market Terms That Every Beginner Should Know

Getting a grasp on the market can be a daunting task for new investors, but this infographic is an easy first step to help in understanding stock market terms.

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40 Stock Market Terms That Every Beginner Should Know

Understanding the stock market can be a daunting task for any new investor.

Not only are there many concepts and technical terms to decipher, but nearly everybody will try to give you conflicting pieces of advice.

For example, if a stock in your portfolio falls in price, should you be accumulating additional shares at a lower price or should you be strategically cutting your losses?

Some experts will tell you one thing, while others will tell you precisely the opposite.

A Place to Start: Terminology

Before you drift into the many debates that the investing pundits are weighing in on, perhaps the most proactive step for a beginner is to simply learn to talk the same language as the pros.

Today’s infographic comes to us from StocksToTrade.com, and it covers the most important stock market terms that every new investor should know and understand. It’s enough to get any beginner on the same playing field, so they can start toying with the more nuanced or complex concepts in the investing universe.

While we don’t agree with the exact definitions of all of the terms, the list is adequate enough to get any new investor off the ground. It covers basic order terms like “bid”, “ask”, and “volume”, but it also goes into concepts like “authorized shares”, “secondary offerings”, “yield”, and a security’s “moving average”.

What’s Next?

Already got a handle on 40 of the most important stock market terms?

Visual Capitalist has a ton of other powerful visual resources for new investors, or anyone else hungry to learn about how markets work:

Crush the above resources, and you’ll be market savvy in no time!

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Gold

A Brief History of Jewelry Through the Ages

Jewelry has been coveted for centuries by many different cultures. Here’s a look at the history of jewelry, and how it’s evolved into a $348B industry.

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Jewelry has been an integral aspect of human civilization for centuries, but it was the discovery and subsequent spread of precious metals and gemstones which really changed the game.

In today’s infographic from Menē, we visualize how the uses and symbolism of jewelry have evolved across time and space to become the industry we’re familiar with today.

Antique, Yet Ageless

There isn’t a single corner of the world that’s untouched by the influence of jewelry.

  • Ancient Egypt
    Gold accompanied the affluent into the afterlife – the famous 1922 discovery of King Tutankhamun’s tomb was filled to the brim with gold jewelry.
  • Ancient Greece and Rome
    Jewelry was used practically, and as a protection against evil. The gold olive wreath design was highly popular during this time.
  • Mesopotamia
    Both men and women in the Sumer civilization wore intricate pieces of jewelry, incorporating bright gems like agate, jasper, or lapis lazuli.
  • Meso-America
    The aristocracy in Aztec culture wore gold jewelry with gemstones to demonstrate their rank. The jewelry also doubled up as godly sacrifices.
  • Ancient India
    The Mughal Empire introduced the combination of gemstones with gold and silver. Today, pure gold jewelry is often gifted to new brides for financial security.
  • Ancient China
    Both rich and poor wore jade jewelry for its durable and protective properties. Pure gold jewelry is making a fashion comeback, doubling as a form of investment.

Modern Jewelry: At a Crossroads

Today, jewelry is at once the very same and vastly different from what it used to be.

The industry is worth upwards of $348 billion per year, and it’s not hard to see why. As an alternative asset, jewelry has grown 138% in value over the last decade – only outperformed by classic cars, rare coins, and fine wine.

However, perceptions of jewelry vastly differ. It’s not a stretch to say that Western jewelry buyers are enamored with diamonds, given their enduring association with special occasions – but it’s interesting to note how that ideal was fabricated.

The Invention of Diamonds

The De Beers Group is well known for making diamonds great again. In the early 1900s, the company had already monopolized the diamond trade and stabilized the market, but they faced the challenge of marketing diamonds to consumers at all income levels.

The average American considered diamonds an extravagance, preferring to spend money on cars and appliances instead. The concept of engagement rings existed, but weren’t widely adopted. The #1 slogan of the century – “A Diamond is Forever” – transformed all that.

Even as more companies like Tiffany and Co and Cartier entered the playing field, De Beers had set a successful industry standard. But there’s a catch – diamonds are actually:

  • Not all that rare in nature
  • Intrinsically low in value
  • Easily replicated in a lab
  • Decreasing in sales

Despite these caveats, the popularity of diamonds illustrate how Western consumers do not approach jewelry in the same way as Eastern economies, where its function as a store of wealth persists.

The Eastern Gold Standard

In Eastern economies, jewelry often takes the form of pure gold. The reasons behind this difference are surprisingly pragmatic: gold is considered a secure and innate store of wealth that maintains its purchasing value over decades, allowing families to pass wealth from generation to generation.

The rich history of the precious metal has made it a sought-after commodity for centuries, and China and India drive more than half of global gold jewelry demand every year:

YearShare of Demand (India + China)Total Global Jewelry Demand (tonnes)
201457%2510 tonnes
201558%2426 tonnes
201655%2068 tonnes
201757%2201 tonnes
201858%2200 tonnes

Source: Gold Hub – Values have been rounded up to the nearest tonne.

Why are Eastern cultures so attracted to the properties of pure gold?

Part 2 of this series will show why gold is the world’s most incredible metal, and why it’s coveted by billions of people.

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