Investor Personality

Our emotions and personality affect almost every decision we make. So, it's no surprise they carry over to our finances. For example, do you hold onto stocks because they were handed down to you from a loved one? Or, are you so optimistic in nature, you don't back up hot investment tips with facts?

Financial advisor Scott Keller says he sees personality get in the way of sound financial planning all too often, and he says it's a huge mistake. But, if you recognize that this is an issue for you, simply keep it in mind before making any financial decisions. And…as always…follow the investing rule of thumb you've heard over and over again…DIVERSIFY.

Your Personality

Understanding your "investor personality" is important when figuring out your investing style. You need to know what you're comfortable with and what you can't tolerate within your portfolio…before making any moves. Here are some characteristics of each type of investor:

Conservative Investor

>>Not comfortable with the ups and downs of the market
>>Not willing to take on additional risk, even if it could mean greater returns
>>Have a short investment time horizon (less than 7 years)

Aggressive Investor

>>Comfortable with the movements of the market
>>Willing to take risks for higher returns
>>Long investment horizon (more than 15 years)

Moderate Investor

>>Between a conservative and aggressive investor in comfort with ups and downs of market.
>>Willing to accept some risk
>>Investment time horizon of 7-14 years

American Express Financial Advisors

Did You Know?

What is your investment personality? Take this quiz to find out.

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