Producers believe in working hard to ensure financial security and peace of mind while Entrepreneurs will take risks with their money to achieve a business or financial goal.
Investment education can be very rewarding. Producers often don't understand how financial systems work. They do not evaluate risks carefully and rarely profit from it. They lack confidence in making financial decisions. They value the financial success and prestige that money can bring and believe their hard work will pay off financially and they will be successful. They believe that increasing their current income is their most important financial goal.
Producers trust and will allow a financial advisor to help them achieve their goals. They value the safety of a guaranteed return. They will benefit from a financial plan with a balanced approach including some risk to put their hard-earned assets at work. They need be encouraged to diversify their assets into investments suited for their financial situation.
A unit trust investment portfolio consisting of the following should satisfy the risk tolerance of Producers: Domestic-Fixed Interest-Money Market & Bond Funds, Domestic-Real Estate-General Funds, Domestic-Equity-General, Growth and Value Funds.
Entrepreneurs can be founders of large companies, self-employed small business owners, or sole proprietors. Some are salaried workers aquired entrepreneurial skills within corporations and businesses.
Kathleen Gurney: “The entrepreneur is likely to make - and sometimes lose and remake - those millions. They are people who just love work, and have a hard time picturing retirement at all.”
Entrepreneurs believe their individual energy and effort contribute to their financial success. Their comfort with risk works to their advantage by giving them confidence to outperform their own standards of excellence. Risk can also be their weakness. They often believe they have total control over every aspect of a situation and frequently take on too much. At times they make poor investment decisions because of overconfidence.
Entrepreneurs prefer direct ownership of individual shares to unit trust funds. Once proven trustworthy, Entrepreneurs will consider their adviser a partner in the management of their financial matters.
A unit trust investment portfolio consisting of the following should satisfy the risk tolerance of Entrepreneurs: Domestic-Fixed Interest-Money Market & Bond Funds, Domestic-Real Estate-General Funds, Domestic-Equity-General, Growth and Value Funds.
Some financial advisors/planners may differ with the approach to link investment portfolios to money personalities. The greatest value of knowing your money personality is to know your habits when it comes to money matters.
Dr. Kathleen Gurney, Ph.D. founded The Financial Psychology Corporation®, www.kathleengurney.com. She developed the Moneymax® profile which formed the basis of her book, Your Money Personality: What it is and How to Profit from It. Financial Psychology Corporation. Hugo Snyman is the founder of Third Circle Asset Management (Pty) Ltd. and uses her profiler in South Africa.
If you are not any of the money personalities mention thus far, you can only be a High Roller.
Is there any correlation between Dr. Gurney’s Moneymax® profile and the Myers-Briggs Questionnaire? Who better than Kathleen Gurney to personally provide the answer.
Until next time.