What your personality has to do with your investments


    But there is another factor that is a little closer to your home that can affect your facility: your personality. Don’t worry – we won’t force you to fill out a two-hour questionnaire to find out how your temperament can affect your investments. Instead, we draw on observations from the 2021 TD Wealth Behavioral Finance Industry Report.

    “Behavioral Finance” is the study of how psychological factors influence our financial decisions. And TD Wealth’s latest behavioral finance study found that there are many psychological and behavioral factors that can affect a person’s risk appetite when it comes to their finances and investments. In other words, your personality and your attitude to risk can directly affect how you invest.

    Identify your investment personality

    If your personality can influence your investment decisions, how do you identify who you are? Using five key personality traits (known as the Big Five in psychology), TD Wealth can help you identify your personality based on your rank on a scale for each of the Big Five traits: conscientiousness, compatibility, reactivity, extraversion, and openness.

    With the help of a TD Wealth Advisor, you can take the TD Wealth Personality ™ Assessment – a simple quiz that will help you identify your investment personality. Once you understand what influences your investment decisions, you can use that knowledge to learn more about yourself and how your personality can affect your financial decisions.

    Personality traits and investments

    Here are the Big Five personality traits, and how they can help you identify your investment personality through the TD Wealth Personality ™ Assessment.

    Conscientiousness: Do you have a good sense of right and wrong? Is it important to you

    • LOW: Low conscientiousness can involve short-term compromises and living in the moment
    • HIGH: High conscientiousness can be characterized by short-term sacrifices in pursuit of long-term goals.

    According to the report, those with high conscientiousness tend to take low risk in their investments, while the opposite may be the case for those with less conscientiousness.

    Compatibility: How likely is it that you will ride with me?


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