It doesn't matter if you are a beginner or have been investing for many years, it's never too early or too late to start asking questions. It's almost impossible to ask a dumb question about how you are investing your money.
Don't feel intimidated. Remember, it's your money at stake. You are paying for the assistance of a financial professional.
A good financial professional will welcome your questions, no matter how basic. Financial professionals know that an educated client is an asset, not a liability.
They would rather answer your questions before you invest, than confront your anger and confusion later.
Here you will find some questions that you should ask about investment products, the people who sell those products, the people who provide investment advice to you, and some tips on how to monitor your investments and handle any problems.
Keep this information on hand when considering an investment and use it by asking the right questions before you buy. Have a pen and piece of paper ready to take notes on the answers. They can come in handy if there is a dispute later about what was said during the transaction.
Taking notes also sends a signal to your financial professional: I'm a smart and serious investor who wants to know more about the risks and rewards of investing.
Act promptly! By law, you only have a limited time to take legal action. Follow these steps to solve your problem:
Securities and Exchange Commission
Office of Investor Education and Advocacy
100 F Street, N.E.
Washington, D.C. 20549-0213
For more information on how to invest wisely, ask
for the publications:
Invest Wisely: Advice From Your Securities Industry Regulators,
Protect Your Money: Check Out Brokers and Investment Advisers, and
Invest Wisely: An Introduction to Mutual Funds.
You can also get other SEC publications online or by calling the toll-free publications line at (800) SEC-0330.