Things Every Investor Should Know:

Do you understand how your investments were chosen? Did it involve any of these factors – past performance, commissions, a preferred fund company, a proprietary product, a conflict of interest?

Do you know your portfolio’s range of likely returns? How much could it go up in 1, 3, or 5 years?  How much could it go down?

What is the risk of your portfolio? Do you know the number, and how to measure it?

Do you have an investment policy statement? This could give you protection from investment schemes (Ponzi).  Pensions have an investment policy statement, so it is good for you too.

What are the hidden costs of your portfolio? Do you know the management fees, commissions, trading costs, administration expenses, back end surrender charges, and tax expenses?

Do you have a plan? Do you have different assets for different goals?  Do you know how much you need to accumulate?  Do you have it written – your financial life on a piece of paper?

Do you know how much you can safely withdraw each year from your portfolio? How do you calculate this number?

Do you know the purpose of being educated about your investments? This makes you able to judge your investments, be calm in all investment markets, and you don’t fear something you don’t understand.

How can you get educated? Workshops, books, your financial advisor.