When you are among the wealthiest investors, you can afford not to have financial regrets, a new Millionaire Corner study finds.
When you are among the wealthiest investors, you can afford not to have financial regrets.
When asked what they wish they done differently prior to the 2008 economic collapse, nearly four-in-ten (38 percent) High Net Worth investors with at least $750,000 net income responded “none of the above” to a list of actions ranging from “taken more risk in my investments” to “used a financial advisor to a greater degree.” Conversely, investors with less than $100,000 were least likely to say “none of the above” than their wealthier counterparts.
Forty-two percent of these investors said they wished they had saved more prior to the collapse. The second-highest percentage of investors with this financial regret (30 percent) were those who make between $100,000 and $250,000.
The least wealthy of High Net Worth Investors surveyed also expressed heightened regret over having taken on as much debt (20 percent vs. 16 percent of High Net Worth respondents overall) and not contributing more to tax-deferred investments such as a 401(k) (15 percent vs. 8 percent of investors with $750,000 net income).
Those with between $250,000 and $500,000 expressed the most regret that they had not invested more conservatively (22 percent), while those with between $500,000 and $750,000 most regret that they had not invested in more real estate or real estate products (19 percent).
The wealthiest investors do not regret much about their actions prior to the collapse. The highest percentage (17 percent) said they wished they had saved more, while 14 percent said they wished they had done more independent research about finances, while 12 percent said they wished they had invested more conservatively and not taken on as much debt. Eleven percent said they wished they had used a financial advisor to a greater degree, used a different financial advisor and taken more risk in their investments.
A separate survey of affluent investors conducted by Millionaire Corner found that age, too, is a factor in financial regret. Older investors, for example, lament their levels of retirement savings, while younger investors show the most remorse over their level of credit card debt.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.