What you do with your financial resources is a personal decision based on unique objectives, which may include financial gain, purchase of property or growth of wealth through investments. Making the decision to invest comes with certain risks, but when done properly and with careful consideration, it can result in significant financial benefits. It is in your interests to know how to invest wisely and with your long-term interests in mind.
One way you can do this is by carefully vetting your potential investments before you move forward. You will benefit from doing your own due diligence before signing on the dotted line, ensuring that, while risky, it is a risk you can take with relative confidence. Imprudent investments can result in financial loss, legal complications and other issues. Before you commit your hard-earned money, you will benefit from asking questions and understanding the specifics of the investment.
Knowledge is power
When it comes to the money you have worked hard to earn, you have the right to be protective and proactive. Asking the following questions can help you understand the implications of the choices you are about to make and determine if it is a worthwhile risk. Some of these questions include:
- Is the investment registered? When it is a registered investment, this means you will have access to important information about the management, finances and other details of the company.
- Do you fully understand the investment? If you are putting your money on the line, it is in your interests that you fully understand the potential risks associated with that. Reading the prospectus and the disclosure statement can be helpful.
- Is the seller licensed? It is critical to check the background of the person who is promoting the investment to determine if they are legitimate and knowledgeable.
- What are the risks versus the rewards? In some cases, a higher-risk investment can carry the potential for significant rewards. No legitimate investment can promise you zero risk.
Your money is worth protecting. However, there are times when the best efforts of a New York investor are not enough to protect him or her from financial loss due to the actions of the broker, or even investment fraud. If you believe that your financial issues are the result of illegal practices on the part of someone who owes you a fiduciary duty, contact the attorneys at Kaufmann Gildin & Robbins LLP for a complimentary consultation.