Behavioral Finance: Personality Type Determines Pay

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frenchje
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Joined: Thu May 03, 2012 12:16 pm

Behavioral Finance: Personality Type Determines Pay

Post by frenchje » Thu Nov 07, 2013 9:58 am

With some of the discussions on behavioral finance I've seen lately I thought this article was interesting:

http://finance.yahoo.com/news/your-pers ... 13629.html

I was a little surprised that one personality type was so much different than the rest, though after more reading it does make some sense.

tpm871
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Re: Behavioral Finance: Personality Type Determines Pay

Post by tpm871 » Sat Nov 09, 2013 1:51 am

It would be interesting to know the distribution of Bogleheads across those types, and whether there are any trends. For example:

Are there many artisian and idealist Bogleheads?
(My guess is no)

Are guardians more likely to favor the three fund approach, and rationals more likely to favor slice & dice?
(My guess is yes)

Geist
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Location: Alaska

Re: Behavioral Finance: Personality Type Determines Pay

Post by Geist » Sat Nov 09, 2013 2:42 am

As a strong INTJ (Introverted rationalist, "the mastermind"), I would certainly have to agree, at least from my own personal experience. I've observed this in myself before, and would say that my personality tendencies as a focused, efficient planner have contributed significantly to my present success in life, both financially & otherwise. The only negative I've really observed (remember, INTJ's evaluate introspectively just as much as externally) are the sometimes "less than preferred" social aspects of the INTJ personality type.

I would disagree, however, with tpm871's second conclusion -- I much prefer the 3-fund model for its simplicity, and thus, its efficiency. Sure, I could slice-and-dice like a maniac, but doing so would be (IMO) an excessive expenditure of effort for a relatively slight benefit. However, I agree that it would be interesting to see the the personality distribution of Bogleheads... Can we retroactively add a poll to the thread?

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in_reality
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Re: Behavioral Finance: Personality Type Determines Pay

Post by in_reality » Sat Nov 09, 2013 3:53 am

Not good science I think.
And finally, the big news: how much money each personality type tends to earn:
How can they say anything about how personality type relates to income when they are using household income?

I am not saying their results are untrue, I am saying we can not know they are true since perhaps the extroverted-rationalist attract a certain type of partner who has a certain income profile.

Seriously if using household income as proxy for individual income isn't questionable then I don't know what is. What do you expect from personality analysts though. They have to make their work relevant somehow.
Last edited by in_reality on Sat Nov 09, 2013 11:58 pm, edited 1 time in total.

Gleevec
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Re: Behavioral Finance: Personality Type Determines Pay

Post by Gleevec » Sat Nov 09, 2013 9:17 am

Might as well make a post about how Libras tax loss harvest more than Aquariuses.

This is NOT behavioral finance. This is a weakly scientific personality test where there are no statistics presented where everyone is reading into the tea-leaves.

In fact, this is the kind of fluff piece I expect to read on CNBC or huff post.

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