Investors' Four Personality Groups

Know thyself.

That's the message Will Prest wants to send to investors who are saving for retirement. Prest, senior retirement strategist at Transamerica, says self-awareness is a critical tool in retirement planning. "If you really want to manage your investments well, you need to understand your personality," says Prest. "It's always valuable to know who you are."

That's because investors need to understand why they make certain investment decisions, from asset allocation strategies to how they deal with sharp market downturns. After all, knowing why you make those decisions may help you avoid costly missteps as you march toward retirement, according to Prest.

So what kind of investor are you? After studying more than 2,000 survey responses from pre-retirees in their 50s, 60s and 70s, Transamerica recently grouped investors into four personality categories based on how change, uncertainty, risk and expectations influenced their retirement planning. A short quiz will help determine your "change personality" and group you in one of the following categories:

Venturer: Prest says venturers believe life is within their control, "seek out change" and perform best when confronted by a period of transition, whether a job change or adding a new baby to the family. Venturers feel prepared for retirement and are optimistic that the transition into retirement will be easy. They embrace the do-it-yourself ethic and often take control of their investments. But while this bunch has confidence to spare, Prest also says venturers' personalities can get them into trouble. "They run the risk of being too self-confident and walking into something they aren't prepared for," he says.

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