What is Your Investor Type

Whether you’re new to investing, an old pro, or somewhere in between, you may not realize that there are actually different types or categories of investors. And, while not everyone fits neatly into any one category, the categories are a good, basic way to understand a bit more about yourself as an investor. Once you know what kind of an investor you are, it becomes a lot easier to better understand your investment needs, to choose an investment adviser who can offer you the help you need, and even to choose investments that are right for you.     

“Full Guidance” Investors

Full guidance investors are investors who, no matter how much experience they may have, prefer to have help, support, and reassurance from professionals through every step of the investment process.

Sometimes, full guidance investors are just people who are very cautious and don’t want to make any mistakes. Sometimes, they are simply new to investing and need someone to teach them the ropes, or they may just have very complex or changing/ recently changed investment needs. Whatever the case may be, if you are someone who likes a lot of help- and there’s certainly nothing wrong with that- then you will need a very hands-on and helpful financial adviser to assist you.

“Middle of the Road” Investors

Middle of the road investors are investors that require some help but not too much help; they still want to make some investment decisions on their own but would like to have an adviser to go to for help or concerns. Many people become this type of investor after years in the first category, or they may immediately enter this category due to knowledge they already possess or to research they have done. If you fit into this category, you need an adviser who will offer assistance, guidance, and informed advice but still leave you in control.

“No Guidance” Investors

Finally, you have those rare investors who have lots of experience and/or knowledge and who really feel capable of making and managing all of their investment decisions on their own. And, while it’s certainly great to have reached this level of competence, make sure you are really ready to strike out on your own before you become a no guidance investor. And, even then, it can still be wise to have an investment adviser available just in case you run into any problems along the way.

There is no “right” or “wrong” type of investor to be. The important thing is just to know yourself and your abilities and then to make the right decisions based on your unique needs and abilities.