Treat your investments like you would a first date: New research suggests you should think long-term and watch out for red flags
According to the City Watchdog, people should apply the same principles to investing as they do to dating.
The Financial Conduct Authority (FCA) commissioned a survey of 1,000 investors aged 18 to 40 who also use online dating platforms to understand their approach to both areas of their lives.
Nearly half, or 48 percent, of those surveyed said they date to find a potential partner for life.
But only 2 percent of those surveyed had a time frame longer than five years in mind when investing, and 14 percent had no time frame at all.
The study, to highlight the FCA’s InvestSmart campaign, also examined how investors would react to a ‘red flag’ on a date and when investing.
Unplanned: Only 2% of those surveyed had a time frame greater than five years in mind when investing and 14% had no time frame at all
These include a date that was rude to the wait staff and arrived late, or difficulty getting invested money out, or an investment opportunity that was only available for a short time.
Men were more likely to continue a date despite seeing a red flag — 49 percent compared to 39 percent of women — and more likely to continue an investment after identifying a warning sign — 39 percent versus 28 percent of women.
A third said they could ignore the hype — say, a high follower count — on a potential match’s social profile.
Only a fifth say they can ignore the investment hype. The FCA is working with Anna Williamson, from Channel 4 show Celebs Go Dating, who said: ‘Relationships and matchmaking are so much more than aesthetics – initial attraction can fade so you have to look at the bigger picture if you want something long term to last.
“The same can be said of investing – don’t buy into the hype… and think about your longer-term goals.”