Tuesday, October 15, 2013

Investing Made Simple: Part II

Recently read of a lotto winner who lost his wealth to bad advice by an investment firm that had misled the poor lad. Apparently, he was advised to invest in costly insurance plans and securities he never needed. The firm was led by an attorney and other professionals unqualified to give investment advice. Hence, the skepticism that leads the average citizen to avoid safeguarding her future. 

A brief Internet search found that while such an experience is rare, it is impactful.  Imagine going from a millionaire to a pauper overnight. Frightening. While this story and others like it require due diligence, we hurt ourselves and jeopardize our futures when we avoid saving. 

Last time I was on the topic, I had offered to share trustworthy sources to consult for investing. Please note, that while the information is reliable, always do your own individual research and consult qualified professionals before committing to just about anything really, especially investing. 

The following sources provide basic investing guidelines with absolutely no obligation:

1) SEC. The Securities and Exchange Committee oversees the finance industry and makes sure that anyone operating under its watchful eye follows the law. Since the accounting and investing scandals of the past decade or so, it has been under pressure to get things right. It is a federal organization and works in the public's best interests. There is a special site available for the new investor with all sorts of valuable information. The goal here is not to sell any specific type of security, but to guide visitors along the complex path of investing. Best of all, the info is spelled out in plain English. 
Link: http://www.sec.gov/investor/pubs/roadmap.htm

2) FINRA. The Financial Industry Regulatory Authority is a not-for-profit market watchdog, although it operates with the full 
consent and support of the government. It works independently to keep financial common airs on their toes and once again, advocates for consumer

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