In 2009, at the height of economic turmoil, many of the very rich found themselves in a position they never saw coming—they were strapped for cash.
Through a variety of financial blunders—from tying up too much wealth in one type of investment to taking on too much debt—many wealthy Americans just didn’t have the accessible savings they needed to weather the economic downturn.
A recent study from the Spectrem Group asked affluent investors what they wished they had done differently before the recession.
Financial Hindsight Is 20/20
Although 38% answered “none of the above” to the list of regrets the study listed, 17% of the top earners—those with net incomes of $750,000 or more—reported that they wished they had saved more. That percentage soars to 42% once net income falls below $100,000.
Other regrets included not doing enough independent financial research and taking on too much debt, CNBC reports.
It looks like investors are taking steps to ensure that history won’t repeat itself, as well. Research from American Express Publishing and Harrison Group shows that the savings rate of the top 1% increased three percentage points since this time last year, and has tripled since 2007.
A study from Bank of America, too, found that wealthy investors are keeping a bigger cash cushion out of the market. The study shows that 56% of millionaires have a “substantial” amount of cash on hand. Only 16% of them plan to invest in the next few months, and 40% intend to invest it in the next two years, according to CNBC.
Critics may argue that this cash may be better invested or pumped into the economy, but as CNBC states, the markets seem to be doing just fine without those funds.