Risk warnings or disclaimers are investment is appropriate for you or published both for legal reasons not. Often the warnings do not and as a means of informing the quantify the level of risk that you are investor regarding the nature of the taking, nor do they help you assess risks of a particular investment. Typ- the suitability of the investment for ically these warnings are found at your particular situation. A better the end of a brochure or webpage. approach is to work with a Certified While the intent is to inform and Financial Planner who will thorougheducate the investor, often the lan- ly explain a suggested investment guage used is so heavily punctuat- to you and how it fits into your finaned with legal jargon that it is a task cial plan. Then read the literature, just to translate the warning into prospectus and warnings and ask plain English. The warnings by questions if there are things that themselves are not the sole criteria you do not understand before makto use when determining if an ing an investment.

The first piece of advice for all make sure it is best for you with its investors is read the prospectus. given risks and expenses. I would The prospectus includes a lot of work with someone that is a CFP or information about the investment a ChFC. These designations show including costs, risks associated that this individual has gone and information about how the through a series of exams that money will be invested. The facts demonstrate their knowledge about are that most people do not read various products and in what cirthe prospectus as they are too busy cumstances they are appropriate. or they feel they can not understand The biggest problem that investors it. Without doing your homework, face is being in investments that you need to trust that the person they do not understand or that are who you are working with is giving not appropriate given their circumyou the whole story about the stances. If you do not have an investment that you are purchasing. adviser that you trust, make sure My advice is first make sure you’re you read the prospectus and check working with someone that has the around to make sure you are workappropriate credentials so that you ing with a reputable company. In the have trust in their abilities to under- end, it is always the investor’s stand the product and that they can responsibility to do their homework!

If you are looking to invest in a questions or concerns you may company, at minimum, check have. This is not Monopoly the following: 1. Make sure it is money, so at the end of the day reputable 2. Understand what if you decide to wade out into they do, i.e, what are their serv- the water on your own, make ices or products and are they sure you read all of the disgood? 3. Are all of their regula- claimers and warnings that tory filings up to date and in come along with the offer, and good order? 4. Feel free to con- most importantly always tact the investors relations remember, caveat emptor department and go over any (buyer beware).