TIPS FOR INVESTORS

Helpful Tips for the Prudent Investor

• Shop around. Compare the products and fees of various banks, financial planners, brokers and investment houses.
• Ask questions. All investments carry some degree of risk, so you should fully understand what you are getting into. Ask for a written explanation of products, operations and fees.
• Educate yourself. Spend some time at your local library gathering information. Read investment and financial publications such as the Wall Street Journal, Barron's, Investor's Business Daily, Money, Smart Money, Forbes and the monthly Standard & Poor's Stock Reports. Moody's Investors Service also has manuals that contain financial information on thousands of companies.
• Get advice. A financial advisor, your accountant or tax advisor are all good sources of information to help you understand the choices you are making and what your risks will be. Make sure any salesperson or advisor understands your goals and how much risk you are willing to assume.
• Don't buy stocks or other investments pitched to you over the telephone. And never let a salesperson pressure you into acting immediately.
• Be suspicious if a salesperson promises a spectacular rate of return. If it seems too good to be true, it probably is.
• Don't put all your eggs in one basket. Diversification — distributing your money across different types of investments — is the key to sound investing.
• Do your homework. Never invest in a product you don't fully understand.