Despite their net-worth, a third (33%) of wealthy individuals in the UK wish they had more self-control over their financial behaviour, says the latest report in the Barclays Wealth Insights series. Interestingly, of all global respondents, a need for increased financial discipline is likely to be felt most by those at the wealthiest end of the scale (£10m+), where 45% of respondents wish they had more self-control. This is despite the report showing that those who want self-control are less likely to be satisfied with their financial situation.
Researched by Ledbury Research and written in conjunction with Barclays Wealth, the report is based on a survey of 400 high net worth individuals in the UK and more than 2,000 across the globe, and provides an in-depth examination of wealthy investors from a behavioural finance perspective. It considers the different financial personality traits that exist amongst wealthy investors and the different self-imposed rules and strategies that they put in place to deal with these traits. It shows that "emotional" trading can cost investors nearly 20% in returns over a ten-year period*, and the report shows that those who employ high strategy usage have on average 12% more wealth than those who do not use rules.
When compared to respondents across the globe, those in the UK actually have a lower desire for financial discipline than most. Globally, 41% of high-net worth individuals wish they had more self control over financial behaviour, with the figure rising as high as 86% in Taiwan and 70% in Hong Kong.
The full report can be downloaded from the Barclays Wealth website