TD Wealth Behavioural Finance

Your success can’t be understood with just a set of numbers. Our discovery process harnesses the cutting-edge field of behavioural finance, which our advisors use to understand your Wealth Personality and what influences your wealth decisions - including your financial blind spots.

An approach to wealth advice that is as unique as you are

We use the Five Factor Model of Personality to chart your Wealth Personality. This model identifies major personality traits, which can help to predict behaviours and identify underlying motivations - as well as allow your TD Wealth advisor to see how you and your partner's personalities interact to influence financial and investing decisions.

Try the Wealth PersonalityTM introductory assessment!

Get a small preview of your Wealth Personality™ profile by completing this abbreviated version of the same assessment that TD Wealth advisors use.

To uncover your complete Wealth Personality™ profile, and learn more about TD Wealth's unique approach, contact a TD Wealth Advisor.

The five factor model of personality traits: How we use this information to benefit you

  • Calm under pressure vs. Quick to react If you tend to be calm under pressure, your TD Wealth advisor will work with you to ensure your portfolio aligns with your goals. Quick to react? Your advisor may proactively contact you in times of market volatility, and introduce you to ways you can manage risk in your wealth plan.
  • In the moment vs. Self-disciplined If you tend to live in the moment, your TD Wealth advisor may introduce ways to simplify components of your wealth plan and provide annual progress reviews to track progress to goals. More self-disciplined? Your TD Wealth advisor can help by scheduling frequent wealth plan review with you and track progress toward achieving your goals.

We all have financial blind spots

Even the savviest of investors have financial blind spots. TD Wealth advisors understand your financial blind spots and that's exactly what makes their advice so valuable.

An in-depth understanding of your Wealth Personality is instrumental to delivering relevant financial advice that works toward helping you achieve your goals.

The tendency to respond to the same problem differently, depending on how it is presented.

  1. Is this you?
    You may view a 10% loss on a $1 million portfolio differently than a $100,000 loss even though they are equivalent.

  2. Consider:
    Assessing your portfolio’s performance from various perspectives. Be aware of how you respond to different metrics - for example, percentages vs. dollar amounts.

The tendency to over-invest in what you are familiar with.

  1. Is this you?
    You may have a tendency to invest more heavily in companies or industries you know (e.g. companies or industries in which you work). This could lead to an overconcentration in a specific sector.

  2. Consider:
    Working with an advisor to help you develop a diversified portfolio.

'Noise' is recent information that can tempt you to second guess your established investment strategies.

  1. Is this you?
    You may be tempted to make reactionary changes to your portfolio at inopportune times based on noise in the media. These decisions based on noise may negatively impact your portfolio.

  2. Consider:
    Digging deeper, beyond the headlines, to gain a more informed perspective. It’s important to get input for your advisor as well before making changes to your portfolio.

The tendency to feel losses more strongly than gains.

  1. Is this you?
    If your portfolio lost 10% in value, this might generate a stronger emotional response than a 10% gain in value.

  2. Consider:
    Reassessing your risk tolerance with your advisor to develop a risk-based plan you’re comfortable with. A formal insurance and/or estate plan review is also recommended.

The tendency to value a reward that arrives sooner and discount a reward that arrives later.

  1. Is this you?
    You may have a hard time visualizing retirement income and expenses or have difficulty saving for a future goal.

  2. Consider:
    Asking your advisor about tools that can help you estimate cash flows in retirement. You can set up regular deposits to an investment account to save for what matters to you.

The tendency to overestimate your own investment ability.

  1. Is this you?
    You may engage in higher trading activity than the average person, which has been shown to lead to lower returns.

  2. Consider:
    Look at the bigger picture when making investment decisions, including your wealth goals and traditional benchmarks. Be sure to consult with a tax advisor about potential negative tax implications.

Getting to know the full picture

Our discovery process is in-depth. Your TD Wealth advisor doesn't just get to know your financial picture. They apply principles of behavioural finance to dig deeper and understand your personality, your goals, your family, and your motivations.

With these additional layers, your TD Wealth advisor is well equipped to provide you with guidance when and how you want to receive it.

Your Family Tree

A deep understanding of your family's vision and values so that we can bring the best of TD to you.

Your Financial Picture

Together we'll review your financial picture to develop strategies to grow your net worth and assets.

Your Wealth Personality

A questionnaire that applies principles of behavioural finance to uncover you and your partner's wealth personality and your financial blind spots.

Your Goals for the Future

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