Who Are You as an Investor?

One of the first questions you will probably be asked when you sit down with a financial advisor is “who are you as an investor?” Which is an interesting question considering you’ve probably come to the financial advisor to find out. However, knowing what type of investor you are is a critical aspect of investment management.

You will be expected to choose between one of the following three types of investors:

• Conservative — the main goal is usually to not lose any money and prioritize the preservation of capital over market returns. Much of the portfolio will likely be held in debt securities rather than equities.¹
• Aggressive — the main goal is usually to make as much money as possible. The strategy generally involves more for the chance to maximize returns. The asset allocation is typically weighted more in stocks with little or no assets in bonds or cash.²
• Moderate — a balance between conservative and aggressive. The goal is to provide moderate income and earn moderate interest. The asset allocation may involve a balance between stocks and bonds.³

The first thing you need to figure out is what your goals are — do you want to make money or conserve capital? Your goals can be shaped by factors such as how much money you have to invest, when you want to retire, and how much money you want to retire with. Your answers will help your advisor know the direction you want to take your investments. While you can adjust your strategy as you go, it’s important to remember that your portfolio will need to be strong enough to withstand our current money market and that of the future.

No matter what kind of investor you are, having a financial professional on your side is a great place to start. Through our financial services, we can help you determine the best course of action based on your circumstances and goals. Don’t enter the world of investing without knowing what course is right for you. It may seem like a simple question, but knowing what kind of investor you are can impact your financial future.  

1. https://www.investopedia.com/terms/c/conservativeinvesting.asp
2. https://www.investopedia.com/terms/a/aggressiveinvestmentstrategy.asp
3. https://www.iable.gov/investment-options/what-type-of-investor-are-you