Even the most successful investors wish they had done a few things differently in the years leading up to the financial crisis of 2008, according to study of wealthy Americans by Spectrem Group.
Five years after the crisis, wealthy investors with a net worth between $5 million and $25 million were asked what they would change from their pre-recession financial behavior if they could. A more conservative investment strategy was the most popular answer in the report Changing Investor Attitudes and Behaviors.
Almost one fourth (23 percent) of Ultra High Net Worth investors said they wished they had invested more conservatively prior to the crisis. Among UHNW investors who are professionals like doctors and lawyers, one-third said they had regret over investment risk prior to the crash.
A majority of UHNW investors consider themselves knowledgeable about investing, and similarly, a large majority is heavily involved in investment decisions. Still, 14 percent of UHNW investors said they regret not doing more research on their own about investment products and financial strategies before the crisis.
Twelve percent of UHNW investors said they wished they had saved more in the years before the recession, even though a majority of them consider frugality to be a major factor in acquiring their wealth. Twenty-six percent of UHNW investors 46 years of age and younger said they wished they had saved more.
Conservative investments, savings and research were the top three answers to the question about pre-crisis financial behavior. But the fourth was making the safe bet on investing in real estate. Eleven percent of the UHNW investors wished they had increased their real estate holdings prior to 2007, and 22 percent of investors ages 47 to 64 said they wished they had put more money in real state.
Nine percent of UHNW investors wish they had used a financial advisor to a greater degree prior to the recession.