Weekend Reading: How Investing Personality Types Frame Your Money Perspective
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Have you ever pinpointed your Myers Briggs personality type? It can be insightful to better understand who you are, but when it comes to your investing mindset, here’s another framework worth checking out, especially if you’re looking to elevate your investment decisions.
READ THE ARTICLEMotivations and Methods: The author (Tyler) proposes a financial personality framework that combines two categories: Motivation (what influences your investment choices) and Method (how you understand investing). Under Motivation, four mindsets are identified: Theory, Proof, Trust and Impact. Under Method, four additional mindsets include: Hunter, Gatherer, Farmer and Trader. (Check out the overview, appeal, blind spots and examples for each mindset in the article.)
Finding your intersection: Most investors tend to be a combination of a Motivation and a Method mindset, which results in having one of 16 possible investing personality types (reference the article charts to identify yours!) You can determine your own investing mindsets by evaluating your dominant Motivations and Methods.
When you take the time to identify how your personality drives your investment choices, you can better understand why you make certain investment decisions, how you relate to other investors and the types of investments you may find attractive.