Protect Your Investment | Larkin Law Firm's Elder Law Blog

With the appeal of market?s low prices and some investment advisers encouraging buying while the prices are good, the time is also ripe to protect your investments. Whether you are just embarking on a new investment or you have existing investments, you always need to understand how securities investing is different from bank savings accounts.? The power is in your hands to decide not only who handles your money but how it will be handled.? Three important steps can help protect your investment especially with the market?s continued up and down swings.

Read and Research ? Take time to read about the type of product in which you are investing.? Understand its up and downsides as a product type as well as the specific product you are looking to buy.? If a prospectus exists, read it, especially for costs and disclosures about the risks that the product faces.? Research the investment company and the broker/adviser that you are entrusting to handle your account. ?Not only are websites devoted to investor education available to help you learn, but the Securities Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA), the federal regulators for broker/dealers and investment advisers, will help you check the background of a company or investment adviser by using FINRA?s BrokerCheck or the SEC website.

Stay Informed About Your Accounts ? Even though you may trust your financial adviser to handle your account, you must still pay attention to your account activity. Open your statements and ask questions about anything that you do not understand.? Keep good records of your account statements and discussion notes and other communications with your investment adviser. ?Make sure your adviser knows what level of risk you can tolerate such as how far down your investment can go before you are unable to sleep at night? If you are earning 10-12%, are you prepared to lose 10-12% just as well? Make sure the level of authority and your agreement with your adviser works for you also ? such as can your adviser make buys and/or sales without consulting you? Are you okay with the use of loans (margin) to purchase investments? Are dividends to be reinvested in more of the product or kept in cash? Also know what rates are charged for each transaction and the adviser?s services and/or advice.? Meet regularly with your adviser so you both understand the future plans for your investment such as if additional money will be invested or the timeframe and impact of any withdrawals on your end goal.

Seek Help When Necessary ? If you feel that you are not getting adequate information from your adviser, and especially if you are suspicious that you have been misguided or worst defrauded, you have several ways to seek resolution.? First, discuss the matter with the investment adviser?s supervisor and/or legal and compliance department at the firm.? Since written complaints must be reported to the regulators, broker/dealers often try hard to resolve a situation before the need arises for a written complaint.? If the issue is not resolved, put your complaint in writing and seek a securities attorney to help assess your situation and provide legal advice about pursuing arbitration or litigation as appropriate.? Sometimes complaining in writing directly to your state regulator, FINRA and/or the SEC also can help resolve an issue short of litigation.

Larkin Law Firm is well-versed in securities dispute resolution through negotiation, mediation, arbitration and litigation.? Contact us at info@larkinlawfirmplc.com to receive the help you need.

Source: http://larkinlawfirmplc.com/blog/?p=238

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