Based on interviews and surveys of nearly 900 families, Russ Alan Prince found that their attitudes toward investing could be broken into nine distinct psychological categories. These brief descriptions really do describe most of the investors I have met in my career. Just from looking at this list, do you identify with one of these types?
Here are the 9 Profiles of Wealth, in order of largest to smallest percentage of the study’s results.
1) Family Stewards (20.7% of the sample)
Successful investing allows them to provide for their family, relieve financial worry, and fulfill personal obligations.
2) Investment Phobics (17.0%)
Dislike discussing investments and dislike having to make investment decisions.
3) Independents (12.9%)
Investing provides personal freedom and eliminates worries. Not excited by investing, it’s a necessary evil.
4) The Anonymous (11.8%)
Prize confidentiality and privacy. Concerned about losing money, but view investments as crucial for personal comfort.
5) Moguls (10.1%)
Wealth is a way of keeping score, becoming influential and powerful.
6) VIPs (8.4%)
Successful investing results in prestige and being well known.
7) Accumulators (7.6%)
Solely focused on making money. A person can never be too rich.
8) Gamblers (6.0%)
Enjoy investing, it’s their passion and hobby. Derive pleasure from speculating.
9) Innovators (5.5%)
Investing is an intellectual challenge that requires staying up to date on new opportunities and the latest technologies.
Owning nice things – as a measure of affluence – tends to be most important to Accumulators, VIPs, and Independents. Family Stewards, Investment Phobics, and Gamblers are the least interested in material things and may even view spending as contrary to their goals. The other categories fall in the middle of consumption attitudes.
Most of these nine profiles are going to greatly appreciate the benefits of our financial planning program and wealth management services. Depending on your profile and risk tolerance, we can custom tailor your plan for you. Whatever your needs, you can expect:
- Confidence. A plan designed to achieve your goals, which enables you to feel optimistic about your financial future.
- Competence. Evidence-based analysis is the basis our financial planning steps and investment processes. We stay abreast of current regulations, research, and best practices. Our experience, knowledge, and professional insight are in service of your needs.
- Caring. Clients come first. Our fiduciary promise is to do what is in your best interest. Your long-term success is our one and only mission.
Learn more about Our Financial Planning Services.
