You already know if you’re a saver or a spender, but do you know what type of investor you are? There’s no right or wrong, better or best trait when it comes to your investment preferences. You might be surprised to learn many industry leaders find themselves delegating management of their investments entirely with a financial advisor.
“Understanding your natural tendencies as an investor, or even your preferences for how to make investment decisions, may help you make sound and balanced financial choices and get the most from your relationships with investment professionals,” says Bradley Bevington, Vice President and Program Manager of The Client Preference Model for Wells Fargo Advisors.
Delivery of investment advice is not one-size-fits-all. Clients oscillate on a spectrum of communication and engagement styles, Bevington says. “First begin by understanding your own preferences, and then share that understanding with your partner or spouse if you have one, and your financial team. Once your advisor knows your traits, they can deliver a customized experience tailored to your depth of knowledge, how you like to receive information, and how you prefer to work with your financial advisor.”
Here, we’ll focus on four common types of investor traits — and what you need to know to help improve your investment experience if you find yourself aligning with one of these styles.