Perfectionist? Achiever? Investigator? How Clients' Personality Type Informs Their Investment Style

For example, what should Type 1, the Perfectionist, invest in? Or Type 3, who has a fear of missing out? What types need an advisor the most?

Tan, who held senior posts in investment banking at Credit Suisse and UBS in Singapore, relocated from London to the United States in 2021. Two years later, he co-founded Psyntel, an artificial intelligence-powered software startup aiming to make psychotherapists more efficient.

Tan, who is pursuing a master’s degree in clinical mental health counseling at Mercer University, calls Elon Musk a “Model Type 7” — an Enthusiast or Adventurer. Musk’s pitfall, Tan argues, is that “he has a void that may not be filled by success in business endeavors.”

Here are highlights of the conversation:

THINKADVISOR: What exactly is Enneagram personality typing?

BENJAMIN TAN: A psychological theory that has become popular in recent years. It presents nine different personality types. It’s a tool, not a pigeon hole.

The descriptions aren’t all sunshine and rainbows; they go into [negative] traits too. But the Enneagram suggests that we take inspiration from other types with traits different from our own to see what we can do better.

THINKADVISOR: Please explain some of the nine and the sort of investing that could be beneficial to each. In random order, let’s start with Type 3: Achiever. You illustrate this type through the singer Madonna. 

TAN: Type 3 wants to do a good job at investing — they’ll put their hearts and minds into it — but they need to have a motivation to achieve what they want.

Type 3 is competitive and tends to be a bit image-conscious. They can be swayed by investments everyone else is doing; they want to jump on the bandwagon.

So they have FOMO — fear of missing out.

A potential pitfall is that they can spend too much money for the short term instead of investing in the future. And they may take their chips away too soon by liquidating some of their assets to satisfy short-term needs or desires.

THINKADVISOR: Now, on to Type 1: Perfectionist. Your example is Monica on the TV show “Friends.” Until Type 1 conducts lots of due diligence, they don’t make the investment, you point out.

TAN: Type 1 doesn’t deal well with volatility and may throw in the towel too early. Also, they may argue with their financial advisor about investments.

An investment property — real estate — would make a lot of sense for this type as part of their investment portfolio — buying a small apartment, say, and renting it out.

Real estate is a major investment and one in which Type 1, who is very diligent, can do quite well. It grows in the long term.

THINKADVISOR: How about Type 5: Investigator? You discuss it via the character of Sherlock Holmes: Very cerebral; digs deep. But they may be reluctant to spend money for investment advice, you write. They’re hoarders of money. So they should invest using exchange-traded funds to be deposited on a schedule to “force-sell.”

TAN: Type 5 wants to hold onto their money. They have a fear of losing their self-sufficiency.

If they’ve made an investment a long time ago that turned out to be not very good, they may hang onto it.

Type 5 tends to invest in lesser-known names, which are riskier. Or they invest in stocks that are trading at very low multiples because they look cheap.

They’re always seeking good value, but that can become a real danger for them.

They should have a financial advisor so they can get out of their own head and obtain a different perspective.

THINKADVISOR: Then there’s Type 4: Individualist — Cruella de Vil, of the film, “Cruella.” Type 4 can become detached from reality. They want to hit the jackpot before learning the basics of investing and are emotionally driven and intense. That can really sway their decisions. Type 4 should have an advisor who has strict investing rules.

TAN: This type needs structure and discipline for their financial well-being. So for them, something like a fixed-contribution investment fund, such as an index fund that invests in the S&P, would be [right].

They should go on autopilot with a fixed amount deducted from their paycheck every month rather than allow their decisions to be [governed by] the whims of their emotional ups and downs.

THINKADVISOR: Type 7: Enthusiast — Freddie Mercury, the late lead singer of the rock band Queen. Seven is an adventurer who is challenged by long-term investments. They can get carried away with investing just to invest and are attracted to speculation.

TAN: Type 7 is very much into living large. They can make rash investment choices because they believe they’re overnight experts in investing.

They’re very intellectual, so learning isn’t an issue. But when it comes to contemplating investment decisions, they may be very impulsive.

Rather than consider some downside scenario, they only focus on the upside because they’re eternal optimists.

As a result, high-risk investments become a virtual trap.

THINKADVISOR: You write that Elon Musk is a “Model Type 7.” Meanwhile, he has “integrated into the habits of Type 1 Perfectionist and the intellectual self-reliance of Type 5 Investigator,” you say. Those are counterbalancing traits.

TAN: He is definitely an optimist. [Take] the way he has gone into the nitty-gritty aspects of car production and overcoming mass production challenges. That shows tremendous dedication to detail.

He’s incredibly intelligent, accomplished and creative in business. He not only looks at the big picture but is capable of going into the details and has been demonstrating growth [by adding] Type 1 characteristics.

He has unlimited bandwidth when it comes to learning, as you can see from the different businesses he has.

A pitfall is that he has a void, an insatiable appetite, that may not be filled by success in business endeavors.

He cares so much about humanity and at the same time is seen as cold or even brutal — but that helps him in business.

THINKADVISOR: How can advisors discern the nine types among their clients?

TAN: Basing it on observation can be very tricky unless you’re well trained in Enneagram.

Advisors can read my book and go to my website that has a few questions to narrow down the types. There are a lot of assessment tools [available] to figure it out.

THINKADVISOR: You write that you’re a Type 5. You’ve been a do-it-yourself investor but recently decided to work with an advisor. Have you signed with one yet?

TAN: My husband, Blake, and I are talking to somebody from Bank of America right now. We’re trying to figure out how we can move our assets there to get a professional perspective.