This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SEI Quick Poll: Heart Trumps Head In Investing For Wealthy Individuals

OAKS, Pa., Feb. 14, 2011 /PRNewswire/ -- A new Quick Poll from SEI (Nasdaq: SEIC) today showed that more than two-thirds (68 percent) of high-net-worth individuals surveyed have let their emotions get in the way of making the best investment decisions. And while leading with the heart may be a good thing on Valentine's Day, research has shown that results suffer when emotions are the primary driver of investment decisions.

SEI surveyed 41 wealthy individuals with more than $5 million in investible assets. Despite the clear presence of emotion in investing, the overwhelming majority of those polled (83 percent) said the more objective factors of past experience or analysis have most influenced their investment decisions. The remaining 17 percent said instinct is the most influential factor in their investing decisions.

"Wealthy individuals are human too and their hearts can get the best of them just like anyone else," said David McLaughlin, Senior Managing Director for the SEI Wealth Network®. "We know that emotion will always be part of investing. It's our job to balance that emotion with objectivity to help our clients make the best wealth management decisions for themselves and their families."

Respondents were mixed when asked what most shaped their investing philosophy. Forty six percent said their advisor had most shaped their philosophy, 22 percent pointed to education, 20 percent said peers, and just 12 percent said their family had most shaped their investing philosophy. They were also split on how to measure success. Just over half (54 percent) said personal goal achievement is the most important measure of investing success, while 46 percent said rate of return is most important to them.

There was little disagreement on where to get the most trusted investing information. The overwhelming majority of respondents (83 percent) consider industry professionals to be the most trusted source of investing information, while a small minority (17 percent) pointed to the press as the most trusted information source.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,602.85 -51.92 -0.31%
S&P 500 1,992.33 +4.67 0.23%
NASDAQ 4,833.5740 +20.8660 0.43%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs