As is often said, the pain of discipline is nothing compared with the pain of regret, something that advisors believe applies to investing. A new survey from by TD Ameritrade found that, unsurprisingly, many investors regret their prerecession financial decisions. It also found the current economic climate has curbed many investors’ appetites for risk.
According to the company, when asked what, if any, changes they made to the way they’ve invested in the markets over the past six months, 34% of investors surveyed said they had taken on less risk. That’s compared to 22% who answered the same just three months ago.
Looking ahead to the next three months, 47% of investors said their outlook for investing conditions in the U.S. stock market is “optimistic,” compared with 66% who said the same back in April.
The survey notes that if they could go back to a time before the recession of 2008-2009, many investors would have changed the way they managed their money. Specifically:
• 71% report they would have spent less and saved more
• 65% report they would have lived within their means
• 60% report they would have taken more personal responsibility for managing their money