Take Charge of Your Investments

In short, those who lost the most as a proportion of their assets weren't the people at the top end of the wealth spectrum, but those in the middle class. They were intelligent people, just as you are. They listened to the hundreds of investment "pros" who said buy stocks to keep your money earning above the inflation rate, then lost 50% or more in the market - which is far worse damage than an inflation rate of 2%, 3% or even 7% could ever have done.

Some were day traders who threw all caution to the wind, but many thought they were doing the right thing by sticking to what they knew how to do and letting their brokers be the investment experts.

Wrong!

Kiddo, when you're talking about investments, you're on your own. You can't even count on the government to protect your interests. Congress and the National Association of Securities Dealers (NASD) have looked at ways to address the broker/institution and the broker/client relationship, but we think any regulations will be incomplete or out-and-out dangerous. Our representatives in Congress don't understand the ins and outs of the business, and the NASD has a vested interest in pleasing its members–who are the securities companies throughout the country, large and small.

That said, there are steps you can take to find a good broker. First, you can check out a broker/financial planner's record of complaints, actions, etc., but visiting the Financial Industry Regulatory Authority (FINRA) web site and going to their BrokerCheck section.

Dolan Smart Money Move: You also must empower yourself by learning how to make your own investment decisions. True, learning about investing isn't the most exciting recreational activity one can think of, but it certainly is one of the most important ones. And don't be scared off at the thought. It isn't nearly as complicated as some people–many of whom are the same people who take commissions for playing with your money–would like you to believe.

Page « Previous 1 2 3 4 Next »