Three Types of Investors

After 20 years spent in the financial industry, I’ve come across three main types of investors. Chances are, you know somebody in each group! Keep reading to discover what your investing personality is, as well as to find a key that may be missing—no matter what type of investor you are.

I Love this Stuff! – The “I love this stuff!” investor spends their coffee breaks on various trading platforms watching their investments. They get a high out of trades, and are usually looking for new ideas to take advantage of. Usually, the “I love this stuff!” investor is also very fee-focused.

Ugh, No Thank You. That is Why I Pay a Professional – These investors know they could try learning about investing. They hear about the low-fee trading accounts, but they just couldn’t be bothered to learn about it all. The “Ugh, No Thank You” investor would rather spend their free time doing other things they enjoy. Or, they just find it boring and couldn’t imagine trying to do it themselves.

Yeah, I Really Need to Do Something – The “Yeah, I Really Need to Do Something,” investor reads the odd article, and maybe hears about retirement from a work presentation. They have investments, either at their bank or through their work pension/group RRSP, but typically haven’t planned past that. They know they probably should, but they aren’t sure where to start. So they put it on the “do it tomorrow list.”

What matters most is finding what works for you. You have probably heard many times, “Time can’t be bought.” Time is priceless. So, do it yourself only if you love trading and have good knowledge and experience in it. An interesting article in Forbes magazine (linked below) made a great point about not letting returns distract you from building real wealth. You can watch the market go up and down, but what is your exit strategy? If you do love investing, make sure you have planned your exit strategy.

If you’re more the “Ugh, No Thank You. This is Why I Pay a Professional,” or the “Yeah, I Really Need to Do Something” type of investor, fear not. Certified Financial Planners, such as myself, are here to carry you through what may seem like a complicated or overwhelming process with ease. Entrusting your investments to a qualified professional can provide you with peace of mind for the future, while freeing up your time to focus on things that are important to you now.

Whether you enjoy managing your own investments or not, it’s important to remember the other aspects of financial planning as well. Remember, if you don’t plan for what could happen, you plan to fail. Life is full of drama. Things we never expected, or hoped would never happen, can happen. Make sure to plan appropriately. Whether you have an advisor, manage your own investments, or haven’t gotten around to planning at all, remember: the more wealth you have, the more you risk losing. Make sure you prioritize all parts of your investment plan to protect yourself and your loved ones.

Which of these three investor types are you? If you don’t feel you fit into any of these, what type of investor are you?

Forbes Article

Brooke Dean owns and manages BMD Financial, an Independent Financial services office of Raymond James Ltd. Brooke has been in the financial industry for 20 years and her goal is to help Canadians have Drama-Free Finances. She is a mom to an amazing little human and is a huge animal lover. She has a bulldog named Maybull, who is extremely stubborn, but also extremely loveable.?

Brooke Dean CFP, RRC, TEP, CIM

Senior Financial Planner?

BMD Financial of Raymond James Ltd.?