After years of educating my coaching clients on how to properly design their own investment plans, I’ve noticed there are three distinct types of investors GSBM.
2. Passive Investor
3. Active Investor
So what type of investor are you and why should you care?
- Identifying your investor type will help you know the consequences of your investment style. You’ll learn the limitations and advantages that naturally result from the way you invest.
- Additionally, you’ll be able to decide if the opportunity available at the next level of investing is worth the effort by understanding what the next level of investing looks like.
There’s no right answer to the question, “What is the best investment type?” However, there’s a right answer uniquely suited to your situation.
Only one investment type is appropriate for your plan to achieve wealth, and your job is to determine what that type is.
The nice thing about investor types is we all start in the same place (pre-investor), and we can all graduate to the next successive level of investment skill through education and experience.
Each investment type builds on the skills of the type below it. So no matter what type of investor you are now, the next level is just a little practice and education away.
Investor Type : Pre-Investor
Unless you were born with a silver spoon in your mouth and a trust fund to match, then you likely began life as most of us do: a pre-investor.
A pre-investor is simply someone who isn’t investing.
Pre-investors are characterized by minimal financial consciousness or awareness. There’s little thought of investing, and there are correspondingly little savings or investment to show for that minimal thought.
Some pre-investors have a company retirement plan, but that wouldn’t exist had the personnel department not set it up for them.