Match Your Personality
The best portfolio is the one you can stick with.
What This Means
Every investor has a different comfort level with risk, and that should influence how a portfolio is built. A strategy that looks great on paper isn’t much use if it causes you to second-guess every market decline.
One of the biggest goals of portfolio construction isn’t simply maximizing returns—it’s giving you the confidence to stay invested. Because the longer you stick with a thoughtful investment strategy, the more opportunity compounding has to work in your favor.
That’s why I believe your portfolio should reflect not only your financial goals, but also your personality. The best investment plan is one you’ll have the discipline to follow through every market cycle.
Common Questions
How do I know my investing personality?
It takes time. Most people don’t know their true investing personality until they experience a meaningful market decline. Pay attention to how you feel the next time your portfolio swings. Were you looking for opportunities… or were you tempted to sell? That reaction tells you a lot. As you gain experience, your comfort level may change, and your portfolio can be adjusted along the way. The important thing is building a strategy that fits who you are today—not who you hope you’ll be.
Work on this with your financial advisor.
Should my investing personality change over time?
Maybe. Maybe not. It depends on your goals and your comfort level. Your investing personality may change over time, but it doesn’t have to. Like most things in financial planning, there isn’t one answer that fits everyone. The key is making sure your portfolio continues to fit both your goals and your personality.
Remember This:
The best portfolio is the one you can stick with.