Understanding Your unique Investor Profile

When it comes to your long-term well-being, I’ve always believed that it’s the parts of life beyond the dollar and cents that are most meaningful. That’s why my team and I place an emphasis on understanding who you are as an investor, what motivates you, what’s most important and where you envision yourself in the future.

When you think about it, personal beliefs, ideals and values influence how we spend our money, educate our children and contribute to charity. They even influence how we choose a fulfilling career to create our wealth in the first place.

Shouldn’t these factors shape the way we invest as well?

How we infuse personal values into investment strategies

That way of thinking put me on a mission to create a more concrete understanding of my clients’ priorities and needs. So, in 2019, my son Zach and I launched a new investing platform called Seeds Investor. This tool analyzes how a person prioritizes non-financial factors and has become integral to our practice, enhancing our client discussions and personalizing their investment portfolios to a degree that was not previously possible.

It works through a tailored questionnaire that prompts you to reflect upon your financial goals, risk tolerance and investing values. Upon completion, you receive your unique Investor Persona, which provides critical insights into what matters most to you in investing. Let’s look at what an investor profile is and why it’s important.

What is an investor mindset profile?

Investor Personas are designed to help you understand what matters most when it comes to investing, your perspectives on wealth and how you view the world. It allows us to thoroughly assess your priorities, enabling us to build a personalized portfolio and tailor our discussions to align with your most important values.

There are nine possible investor profiles which are determined based on where you fall on two spectrums: focus and perspective.

Focus: This measures the depth to which an investor wishes to understand details and participate in portfolio construction.

Perspective: This measures how much an investor wants their investments to have impacts beyond their personal gains.

Examples of investor profiles

To help you get a better idea of how investor profiles align with real-life investors, consider these two hypothetical investors.

The first is Barry, a 50-year-old husband and father of two. As a senior-level engineer, he has an appreciation for technical language and numbers. At the same time, he’s a busy family man who enjoys being an active member of his community.

The second is Patricia, a 70-year-old widow who’s still working to navigate her new normal. She has a large family with lots of grandkids. She always talks about setting up college funds to ensure her loved ones can enjoy a more secure financial future after she’s gone.  

Even though both work with the same advisor, their interactions and expectations for the advisor-client relationship are different. Why? Because they have different mindsets when it comes to managing their investments.  

Barry, the Balanced Believer: Because Barry falls right down the center line on both spectrums, he is considered a “balanced believer.” While he values the technical aspects of investing, Barry doesn’t necessarily want his advisor to dive too deep into the weeds during their quarterly reviews or in other communications. At the same time, he doesn’t want to lose sight of the bigger picture.

In terms of impact, he appreciates that his portfolio is built to serve his financial needs now and, in the future, while minimizing unintended harm elsewhere.  

Patricia, the Passive Protector: During her review meetings, Patricia may prefer her advisor to skip over all the investment details and stick to providing her with the big picture. She wants to know if she’s on track with her goals, if any major changes need to happen, and what potential challenges could be coming down the line.  

As a “passive protector,” her focus remains primarily on her portfolio. Patricia finds comfort in having a clear understanding of how her investments align with her long-term financial goals.

The benefits of understanding your investor profile

Your financial and investment landscape is just as unique as you are. Yet, traditional forms of risk assessment and portfolio creation lack deeper personal understanding.

When we share a deep understanding of your motivations, concerns, personal values and priorities, you gain a genuinely personalized investment experience. Knowing what your investor profile is makes it possible to analyze your emotions for true insight into your mindset. This comprehensive understanding of who you are guides us in developing and managing a portfolio that truly aligns with your unique perspective and goals.

What’s your investor profile?

Knowing what matters most is key to creating a truly custom financial plan and a portfolio that aligns with your vision.  

Interested in learning what your Investor Persona Profile is? Take the assessment now.

Investment advisory and financial planning services offered through Summit Financial, LLC, an SEC Registered Investment Adviser, doing business as Conway Wealth Group (4 Campus Drive, Parsippany NJ 07054. Tel. 973-285-3600). 7409026.1