Preserver clients are often deliberate in their decisions and sometimes have difficulty taking action with their investments.
This month's article is the second in a series called "Deep Dives into Behavioral Investor Types." This series is intended to help advisors create better relationships with their clients by deeply understanding the type of person they are dealing with from a financial perspective and adjusting their advisory approach to each type of client.
As we learned in the last series, there are four behavioral investor types (BITs): the Preserver, the Follower, the Independent, andthe Accumulator. If you missed any of these articles, you can find them in my article archive on MorningstarAdvisor.com.
As noted in my previous column, the learning process for each BIT will be a series of three articles:
--Part I will be a diagnosis of a BIT and a discussion of its general characteristics.
--Part II will be a deep dive into the biases of that BIT.
--Part III will be how to create a portfolio for that BIT.
This article is the first for the Preserver BIT.
Diagnosing the Preserver BIT
I am often asked how to diagnose what category a client falls into. The following is a helpful way to initially identify an investor type. I have highlighted in bold below the responses that identify the Preserver behavioral investor type. Please study these answers.