A lot of people ask me about investment or called to set up an appointment preface it is often said, who “Sorry, this might be a stupid question, but ……”
I began to wonder why people this is often said to ask myself, if I ever do. For me, it is usually when I talk to people, such as doctors, lawyers, a theme, I do not know a lot about or intimidate me. I think most people are afraid to ask their investment questions for fear of sounding bad or in some way, they admit they do not have all the “stuff together.”
I can assure you, really are no stupid questions when it comes to investment. Each question leads to more knowledge, which is a good thing.
First of all, let’s start to head loss in question stment itself:
- With the US Securities and Exchange Commission or my state institutions registered this product?
- This is whether to invest in line with what my investment goals? Why do you think it suits me?
- This is how to invest money? Dividends? interest? Capital gains?
- What is the purchase of its total cost? Not just the commission, but any potential costs as well.
- This is a liquid investment? Are there any fees to access my money related?
- Can you tell me about the management team? Many companies tout past performance, but may come from a team that is not there anymore.
- What is a reasonable return on this investment is expected? How it is done in the long run? Many managers who highlight the performance of a great season to do the same. If you are in a long-term vestor, you may not be meaningful.
- What are the risks associated with this investment? What would cause a loss
The next question you should ask is a list of consultants:
- How long have you been in business?
- Do you have any kind of education or qualifications? The vouchers should be that you are looking for advice. For example, if you need to consult planning consultant should be a Certified Financial Planner TM professional. If you want investment advice, then they should hold designated certification Investment Management Analyst® (CIMA®), or Chartered Financial Analyst (CFA®).
- What is your investment philosophy?
- How do you get paid? Do you pay more if I bought it right?
- How often should we meet to discuss my investment?
- If I leave your company, what is the cost if any? Most custodian fee outgoing transmission and / or closing costs account.
These questions are not covered, you may have more depending on your situation. If you do not know the answer the first time or ask your advisor to rewrite the answer in a different way it is also important to ask a question more than once.
Understand your investment and you have similar research doctors and consultants understand your prescription drugs work to do due diligence. You would not leave your health opportunities, and the same type of care should be taken with your money.