Aug 152016

Asset Allocation for the Wealthy

I don’t always recognize good investment opportunities when I see them. But I do know that we should never invest in funerals… because it’s a dying industry. But when I run out of investment ideas I usually turn to the wealthy.

I think it’s extremely important to follow what rich people do. It gives us insight about financial opportunities that we should be aware of. People with extremely high net worths tend to have either a natural knack for managing money, or are at least smart enough to hire the best advisors to invest on their behalf. Of course wealthy people don’t make the best investment decisions all the time, but their historical performance is consistently higher than the average Joe, which is how the rich continues to stay rich. 🙂

One way to track the “smart money” is to follow the quarterly member surveys from Tiger 21, an exclusive network of high net worth investors. To get into this private club all you need is to have a minimum net worth of $10 million. Easy right? 😛 This confidential and anonymous survey asks members about where they have their net worths allocated.


Almost all participants are either self made investors or entrepreneurs with a good eye for business trends. With hundreds of members spread across North America, the results of the survey should represent a fairly accurate cross section of investment opinions from some of the most sophisticated millionaires and billionaires in the world. So what have the wealthy been doing during the last year? For the most part they have decreased their exposure to real estate and increased investments in private businesses. 🙂

Below we can compare the Tiger 21 survey results from the first quarter of last year with the same quarter this year.

Continue reading »

Nov 162015

The three most common personality types for FIRE inclined bloggers are INTJ, ENTJ, INTP.

Table of Contents: 

The importance of knowing your type
How personality affects your financial habits
How rare is your personality?
Most common types for Personal Finance Bloggers
How personality affects your income and career
In Closing and Sources


Intro to the Myers-Briggs personality test

In order to master our finances, we have to develop a solid understanding of our personalities. The way we think dictates how we save, how we spend, and how we manage our money in general. Our temperaments can also affect our income earning potential. With a little self-discovery we can discover our financial strengths and weaknesses so we can focus on the skills and actions that we naturally excel at. 😉

One popular personality test is the Myers-Briggs Type Indicator (MBTI.) Through a series of short questions, the MBTI measures our affinity towards four pairs of personality traits. The result is a 4 trait combination, one trait from each pair, that gives us some insight on how we think and perceive the world. Here is an explanation of each pair of traits.

Myers-Briggs Personality Traits

Extraversion (E)
-People's person
-Feel comfortable and enjoy working in groups
-Sometimes jump too quickly into an activity without thinking
Introversion (I)
-Reflective and somewhat reserved
-Feel comfortable and like doing things alone
-Prefer to know just a few people well
-Sometimes spend too much time thinking, and not take action quickly enough
Sensing (S)
-Remembers details based on facts and physical reality
-Works through facts to understand problems
-Pragmatic and looks at the bottom line
-Start with facts to form a larger picture
-Trusts experience over words and symbols
Intuition (N)
-Remembers events by reading between the lines to find their meaning.
-Leaps between different ideas and possibilities to solve problems
-Focuses on the big picture first before finding out the detailed facts
-Trusts impressions and metaphors more than actual experiences
Thinking (T)
-Logical, calculated, not emotional
-Notices inconsistencies
-Looks for logical explanations or solutions to problems
-Sometimes seen by others as too task-oriented, uncaring, or indifferent
Feeling (F)
-People or communications oriented
-Concerned with harmony and care about what other people think is important
-compassionate, make decisions with the heart
-Sometimes seen by others as too idealistic, indirect, or mushy
Judging (J)
-Prefers to have things planned out in advance
-Likes to be task oriented
-Likes to make lists of things to do
-Likes to get work done before playing

(note: Judging has nothing to do with being judgemental in this context.)
Perceiving (P)
-Prefers to go with the flow
-Likes to keep opportunities open to respond to new circumstances
-Appears to be loose and casual
-Keeps planning to a minimum
-Works in bursts of energy
-Tends to rush projects at the last minute

Each pair of traits is a spectrum because personality is not binary. For example, nobody is purely introverted or extroverted. The resulting trait is whichever one the person has a stronger tendency towards. So if someone’s temperament reflects Introversion, Sensing, Thinking, and Judging, then his MBTI personality type would be ISTJ for short. There are 16 possible outcomes for the Myer’s-Briggs personality test.


If you don’t know your personality type you can take a free test here.


Why It’s Important to Know your MBTI

Increasing our financial self-awareness strengthens our relationship with money, so we can prioritize what’s important to us. For example, there are two primary ways to save more money for retirement. ENTJs are better at increasing their incomes, while ISTJs tend to have an easier time cutting back on spending and being frugal. Understanding our natural tendencies lets us choose financial management strategies that suit our needs. 😉 Once we know our 4-letter personality type we can do a lot of practical and useful things with it, including the following.

  • Discover new career opportunities or side hustles to make more money.
  • Narrow down which financial experts or famous investors to follow based on how similar their personalities are to our own.
  • Better understand where gender stereotypes in society comes from.
  • Find personal finance bloggers that think like us and learn vicariously through their stories and experiences.



What your Personality says about your Financial Habits

The 16 MBTI types can be grouped into 4 general personality categories. This gives a broad overview of how the personality types can affect someone’s financial behavior.

  • Protectors (SJ)

    These people all have the Sensing and Judging (SJ) traits. They are known as protectors because those who fall into this category are more financially conservative and want to protect their principal investment regardless of opportunity costs. They see wealth preservation as the main priority. Most protectors make average income or higher. As natural planners, they are good at saving for emergencies and for retirement, but sometimes have trouble accepting some calculated risk with their investments. Protectors generally have high savings rates to make up for their conservative risk tolerance on their portfolios.

  • Creators (SP)

    Sometimes also called players, creators like to live in the moment because they are Sensing and Perceiving (SP.) They like to work hard and play hard. Many creators are entrepreneurs and they tend to take bigger risks with their money than other groups.

  • Intellectuals (NT) 

    Intellectuals embody the traits Intuition and Thinking (NT.) Also known as planners, intellectuals like to look at the big picture and plan for the future. They are willing to accept thought-out risks in order to achieve their long term financial goals. Similar to protectors, intellectuals are avid savers. But sometimes they focus so much on the future that they miss out on short-term opportunities to splurge or have fun in the present.

  • Visionaries (NF)

    This group of people tend to be emotional around money. They possess the Intuition and Feeling (NF) traits. Visionaries view lending money to or borrowing money from friends and family members as a very personal matter. They often see money as an extension of who they are. Most visionaries earn average income or lower. Their spending habit revolves more around emotions, relationships, compassion, and ideas, rather than strict pragmatism.



How Rare is your MBTI Personality Type

Most people are Sensing so they prefer to deal with detailed facts and physical reality rather than big-picture ideas and abstractions. Men tend to be slightly more aligned towards introversion while women lean slightly towards extroversion.


Almost 1 out of 5 females in the world are ISFJs. This supports the studies that claim women tend to be more risk-averse than men when they invest. Meanwhile INTJs and ENTJs are the rarest personality types among females. More than half of all females identify with the traits Sensing and Feeling (SF.) This combination lends itself very favorably to working in careers that require a sympathetic approach to people. They are commonly found in the clergy, teaching, health care, child care, sales and office administration work, and personal services.

2 out of 5 males are Introverted Sensors (IS.) They are good at remembering stored memories of previous sensory experiences. This allows them to carry out tasks such as quality assurance because they can compare new products with memories of existing products. Introverted Sensors tend to be good at remembering details. They can easily recall specific things they are interested in, such as names of actors or football players, numbers, percentages, specifications, stock prices, and sports scores.



What Personality Types are Personal Finance Bloggers?

With so many PF blogs out there it’s not always easy to find compatible bloggers who we can relate with. I cover stocks and the financial markets. But what about readers who want to learn about lower risk investment options, or how to get out of debt?

Well earlier this year I surveyed over 100 bloggers to find out about their Myers-Briggs personality types. 🙂 The data has been compiled in the following graph.


Discover the personalities of PF bloggers so you can narrow down which blogs might be more relatable to you.

For a detailed explanation of each personality type, please see the “MBTI Personality Types for PF Bloggerstable below. The types are numbered to make them easier to find. They are roughly placed in order from most common to least common in the blogging community.

1 INTJ the strategist15-11-myer-briggs-personalty-types
2 ENTJ the chief
3 ISTJ the examiner
4 ESTJ the overseer

5 INFJ the confidant
6 ISFJ the defender
7 ENFJ the mentor
8 ENFP the advocate

9 ESFJ the supporter
10 INTP the engineer
11 ENTP the originator
12 INFP the dreamer
13 ISFP the artist
14 ISTP the craftsman
15 ESFP the entertainer
16 ESTP the persuader

Continue reading »

Sep 152013

The results of the latest National Household Survey was published by Stat Can. The survey represents people’s income and household situation in 2010.


The data shows that more than 95% of the 27.3 million Canadians aged 15 and over received some form of income in 2010 which totaled $1.1 trillion. The study also points out that over half of all investment income reported in the country was received by only the highest 10% of earners. This suggests that if we want to make a lot of money, we better maximize our investments 🙂

The top 10% of Canadians made $80,400 or more. To be in the top 5%, we needed at least $102,300. And the top 1% required $191,100, nearly seven times the national median income.

Private pensions were received by 59% of seniors and the median annual amount was $11,700. However, the younger generations of today will probably not have the same luxury. By the time Generation Y reaches retirement I expect private pension benefits to be $6,000 or less in today’s dollars 😕 And that’s if we’re lucky enough to have a pension. All the more reason to save and invest while we’re still young 😀 To learn more about income levels across Canada and the rest of the world, see my new income page.


In other news, my blog was featured in this weekend’s Saturday weekend review on Canadian Budget Binder 😀 Thanks Mr. CBB and welcome all new readers.


Lastly, I have an acquaintance who is in the business of buying and selling computer games. Right now he is looking to buy games from but since he’s Canadian he can’t buy them on that site. So he’s looking for someone in the US to partner with and is willing to pay $5 above the purchase price 🙂 I think this is a great opportunity for any US reader looking to make some easy side income. If you’re interest, tell me in the comments below and I’ll let my acquaintance know. Continue reading »

Apr 112013

13_04_bestemployermugAn annual online study for the top companies to work for in Canada was released yesterday. The study ranks companies on various factor such as voluntary turnover, ethnic breakdowns, tenure, benefits and perks and number of holidays, to determine the best places to work.

13_04_bestworkplaceGoogle Canada is on the top of the list followed by Intuit, and then Microsoft Canada Inc which rounds out the top 3. Tech companies are generally over represented in these kinds of studies. The complete list of all 50 companies can be found here.

I don’t work for any of those companies 🙁 but I AM a shareholder in 5 of them (or at least their US parent companies) including McDonald’s, Google, and Starbucks which I just bought earlier this year 🙂 Without investors like myself companies would not have the money to expand and hire new employees so it feels good to contribute to something bigger than myself  🙂

So how can we use this survey to our advantage? One way is to invest in these businesses. Any company on this list should attract the attention of top talent in their respective industries. These companies can filter through the applicants and pick the best of the best. The result is they’ll have a highly skilled and motivated workforce which should in theory outperform their competitors over time by generating higher productivity and bigger profits 🙂

But investing is risky. Is there a another way we can make money without risking our savings? Yes :0) We can work for these businesses directly. I certainly don’t have the educational background to land a position at Google, Microsoft, or any other tech giants, but I did find a company that only requires you to have a positive attitude 😉 Can you guess which one? Well earlier today I applied for a job at McDonald’s and guess what? They gave me an interview! They asked typical questions and overall I think I did well despite not being properly dressed for the occasion. The interviewer said her manager will contact me in the upcoming days. Imagine the bragging rights I’d have if I worked for one of the top companies in all of Canada, muahaha (^▽^) Can’t wait to hear back from them ^_^

Random Useless Fact: Men get hiccups more often than women.