It's true, your personality could be dangerous to your wealth.
Research is now showing that your personality plays a large role in how much (or how little) you withdraw from your retirement portfolio. It has two "from your" as it now reads. Or at least so says Michael Guillemette, an assistant professor at Texas Tech University, who spoke last week at the Investments and Wealth Institute's annual conference.
According to Guillemette, personality traits determine how you might save for retirement as well as how much you'll withdraw from your retirement accounts. So, for instance those who exhibit the "openness" personality trait tend to have lower portfolio withdrawal rates while those who exhibit the "agreeable" personality trait tend to have higher portfolio withdrawal rates. Openness describes a person's tendency to think in abstract, complex ways, while agreeableness describes a person's tendency to put others' needs ahead of their own, and to cooperate rather than compete with others, according to Truity.com.
For his part, the new research could be used in conjunction with other test, such as a risk tolerance quiz, to better understand your tendencies with respect to money. Learn more about this research here.
Guillemette also discussed the notion that retirees over time tend to value ordinary experiences - time spent with grandchildren for instance -more than extraordinary experiences such as exotic trips and buying things such as cars. And those ordinary experiences are what will make you happy - truly happy -- in retirement.
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