Are rich investors overconfident?

57% of rich investors are in high spirits.

(Money Magazine)

Five years into the bull market, 57% of well-off clients polled by wealth manager deVere Group are bullish on the next 12 months -- the most since 2007.

Skip the celebration: Optimism usually peaks as the good times end. Instead, follow this three-step plan for handling the emotional side of investing.

Sober advice

Do more research. Watch for other ominous signs of overconfidence.

One noted by Leuthold Weeden chief investment officer Doug Ramsey: Trading in speculative penny stocks jumped last year to its highest level since 2007.

Stay on target. Are you too prone to trading as the market's mood -- and yours -- shifts? Go for set-it-and-forget-it options like target-date funds.

In 2008, while panicked savers yanked $229 billion from stock funds, target-date funds saw inflows of $42 billion.

Related: Tools to make your money grow

Watch your wallet. As market confidence rises, resist the urge to splurge on stuff other than stocks.

For every $1 increase in stock wealth, consumer spending jumps 2¢, according to Moody's Analytics chief economist Mark Zandi.

In a bubbly mood? Go ahead, congratulate yourself on getting that much closer to your long-term wealth goals!