Americans Tapping Investments to Fund Spending Amid Stock Market Gains

A new report from the JPMorganChase Institute reveals that more Americans are tapping their investment portfolios to support their spending, showing a shift in household finances tied closely to the stock market.

The study found that over the three months ending in April, 8.2% of individuals transferred money from their investments into their checking accounts, up from 4% during the same period in 2019 and 2.4% in 2015.

This trend is driven largely by older and higher-income individuals, but it's become more common across every age and income group included in the study.

The transfers are coming from both brokerage accounts and retirement accounts, according to George Eckerd, wealth and markets research director for the institute. He noted that household wealth in stocks has risen relative to the rest of the economy, making the connection between financial markets and the real economy greater.