First-timers and long-time investors should have questions when investing. Here are some key questions to help you ensure you are making a smart decision.
1. Are the Sellers Licensed?
According to experts like CEO Patrik Edsparr, con artists are great at manipulating their victims. Keep your money safe by checking out anyone offering an investment opportunity before you consider investing.
2. Are the Investments Registered?
Investment professionals like Patrik Edsparr note that any securities must have registrations on file with the Securities and Exchange Commission. Look for the registration information to get more details on the company, such as its management, services, products and current financial situation.
3. What Is the Risk-Reward Balance?
You will get greater returns if you take on greater risks. However, knowing how to weigh a risk-reward balance is critical for determining which investments are a good idea and which are downright illegal.
4. Can You Understand Your Investment?
Never invest when you don’t understand. Read the investment’s disclosure statement before agreeing to it. If you don’t understand what you are investing in and how it’s going to help you pocket some extra money, ask your financial advisor before continuing. If you’re still confused after that meeting, don’t invest.
5. What Outside Help Do You Have?
Whether researching a professional, investment opportunity or the latest scams, you need unbiased information. Therefore, you should have outside help, such as the SEC tools, to get that information. Make a list of places where you can access tools and trusted professionals, so you can do your research.
Some people have been in this game for a long time. Others are just getting into investing as a way to prepare for their retirement. Either way, you want to make sure you know the answers to these questions before you invest. Otherwise, you could end up losing money.