Knowing your investment personality, if you're conservative, aggressive, or somewhere in between, has a direct bearing on which investment types you should select to help you meet your financial goals. Your investment personality can also change over time.
If you're a conservative investor, you're more likely to define risk as the potential to lose principal value. As a result, you're probably more concerned with safety and minimization of risk, and thus are willing to accept a potentially lower rate of return in exchange for a lower level of risk.
The more aggressive investor, while certainly not indifferent to risk, is generally more concerned with maximizing returns and is more willing to accept a higher degree of risk. This type of investor is less willing to invest too much money over long periods in fixed-rate investments.
Whether you're a conservative or aggressive investor, you must take into account the effects of inflation and taxation on your investment choices.
Knowing your investment personality helps you select investments that could help you reach your goals more comfortably. Please call if you'd like help with the process.