Americans Drain Investments for Spending

A growing number of Americans are accessing their investment portfolios to fund everyday spending, signaling a tighter connection between household finances and the stock market's performance. Research shows that during the three months ending April 2026, 8.2% of individuals transferred money from investments to their checking accounts, a significant rise from 4% in 2019 and 2.4% in 2015. These withdrawals constituted 6.8% of spending for these individuals, up from 3.5% in 2019 and 2.3% in 2015.

While this trend was initially driven by individuals aged 65 and older or those in the top 10% income bracket, recent data indicates an increase across all age and income segments. This heightened reliance on investment funds for spending is attributed partly to the substantial gains seen in the stock market in recent years, including double-digit increases in the S&P 500 in 2023, 2024, and so far in 2025. Economists refer to this phenomenon as the 'wealth effect,' where increased investment values encourage greater consumer spending.

The JPMorganChase Institute's analysis, based on over 20 million Chase checking accounts, indicates that money withdrawn from investment accounts is predominantly spent, rather than saved. This trend is further influenced by the shift from traditional pensions to defined-contribution plans like 401(k)s, giving individuals more direct access to their investment funds throughout their financial lives. The research also notes a rise in 'two-way flows,' suggesting investment accounts are becoming more integral to managing finances across different life stages.