Some of our recent entries have focused on awkward questions to ask your financial adviser, and questions to ask your adviser before buying a mutual fund or variable annuity product:  the following are good questions to ask about any investment.  They will help you determine the validity and value of both the investment in question and the brokerage firm with which you are dealing.  You should always write down the responses you receive.  Remember that brokers are supposed to work for YOU, so do not hesitate to get as much information as possible.

  • Is this investment product registered with the SEC and my state securities agency?
  • Does this investment match my investment goals?
  • Why is this investment suitable for me?
  • How will this investment make money?
  • Specifically, what must happen for this investment to increase in value?
  • What are the total fees to purchase, maintain, and sell this investment?
  • Are there ways that I can reduce or avoid some of the fees that I’ll pay?
  • After all the fees are paid, how much does this investment have to increase in value before I break even?
  • How liquid is this investment?  I.e., how easy would it be to sell if I needed my money right away?
  • What are the specific risks associated with this investment?
  • What is the most I could lose?
  • Does this product or investment have a surrender charge or a contingent deferred sales charge?
  • Where can I get more information about this investment?

Getting as much information as possible before making an investment or starting a relationship with a securities firm will hopefully help you avoid the need of a securities attorney because of an invesetment gone bad.

If you have a legal question about an investment or think you have been the victim of investment fraud, please contact the attorneys at The Frankowski Firm at 888-741-7503 to discuss your potential legal remedies.