Dos & Don'ts

The following is a list of Dos and Don’ts to consider when seeking investment advice: 

  • Do work out what your investment goals are before you decide how to invest.

  • Do consider what balance of risk and return you are comfortable with. Remember the relationship between risk and reward. There is no such thing as a high return, risk-free investment.

  • Do check that the financial services firm you are using (or considering using) is regulated and/or authorised. To check the list of entities that are regulated by the Jersey Financial Services Commission look on our main website www.jerseyfsc.org or contact us to find out.

  • Do shop around. It helps you get the widest choice and most suitable product for your needs.

  • Do find out what fees and charges will apply to your investment or savings plan and what commission, if any, is paid to your financial adviser’s firm.

  • Do find out whether any exit penalties will apply if you need to withdraw your money.

  • Do remember that past performance is no guarantee of future returns.

  • Do spread your investments to reduce risk.

  • Do make sure that you have access to some of your savings for emergencies.

  • Do make sure that you read all of the documents relating to your investment carefully. Ask the adviser to explain anything that you do not understand.

  • Do check what would happen to your investments if you die and make sure that your next of kin knows where to find the documents relating to your investments.

 

  • Don't be tempted by offers or schemes that seem too good to be true.

  • Don't be rushed into making a hasty decision about an investment.

  • Don't invest in anything that you do not understand or that the adviser is unable to explain.

  • Don't be put off or impressed by financial jargon. Ask the adviser for a clear explanation if you do not understand a particular term.

  • Don't commit to a long term investment if you think you may need access to your money in the short or medium term.

  • Don't give your money to an unauthorised firm, particularly if you are contacted by email or over the phone. If you are unsure about the status of a particular firm, check whether they are regulated or authorised by a financial services regulatory body.

  • Don't give vague instructions to a financial adviser such as "do your best" or "get me a decent return". Make sure you know exactly what type of investment product you have and where your money is invested.

  • Don't make an investment decision based only on the advice of a friend or family member. Do your own research or talk to a regulated financial adviser.

  • Don't borrow to invest unless you fully understand the additional risks involved. Remember that the return on the investment would have to beat charges, inflation and the interest on the loan before you make a real gain.

 

 

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