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Financial Tips
Before you sign any paperwork to transfer or open a variable annuity or mutual fund recommended by your financial adviser, have him or her do the following:
Variable Annuity
- Provide you with a comparative fee (use dollar denominations) analysis between a variable annuity and a fixed index annuity.
- Compare annual guaranteed income dollar amounts using a zero percent rate of return.
Mutual Funds
- Do not use the past performance of the mutual fund as a qualifier.
- Only invest what you can afford to lose.
Choosing an Adviser
- Be sure to go to www.finra.org and do a background check on your financial adviser/planner.
- For conflict free advice, hire a fee-based or fee-only adviser who is registered with the Securities Exchange Commission.
- If a financial adviser/planner is paid a commission, classify them as "financial product salespersons."
- Never trust a financial services professional, regardless of how he or she may be compensated.
A word of Advice
- Only invest what you can afford to lose.
- Pay more attention to investment related fees than the potential rate of return.
Favorite Books we Recommend
- Inside The Huddle
- Everyone's a Speculator
- Intelligent Investor
- The Power of Focus
- Black Swan