For Wealthy Individuals, Heart Trumps Head in Investment Behavior

A new Quick Poll from SEI today showed that 68% 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%) said the more objective factors of past experience or analysis have most influenced their investment decisions. The remaining 17% 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."