When investing, some novices lose money since they do not know how to research investment vehicles objectively. Fortunately, even a layperson can make the right decisions and get the most out of his or her financial venture. Here are four ways to avoid being mis-sold on an investment.

Avoiding Investment Mis-Selling

Goals: Often, one will lose their funds or lose out on potential gains when not laying out a solid and realistic goals. Ideally, one must sit down and determine their plans for the funds. Then, an investor can decide where to put their money. For example, when looking to build an emergency fund, one should place their money in a certificate of deposit. On the other hand, when saving for retirement, especially one that is decades away, one can invest in individual stocks or other riskier asset classes. Of course, if retirement is less than five years away, one should maintain a safer strategy. Remember, there is nothing wrong with taking a risk provided that the individual has time to recover from any market losses.

Diversify: Most people know that they must spread their investment dollars. Unfortunately, in a bid for massive gains, many novice investors load up on one stock or mutual fund. In the short run, one can beat the market and make phenomenal gains. However, over the long haul, it is difficult to beat the market. When diversifying, one can experience adequate gains without taking a serious risk. Without a doubt, one must spread their investing dollars; otherwise, they risk a catastrophe if their investment declines, especially near retirement time.

Go over: Gone are the days of buy and hold. This does not mean that one should day trade with their retirement portfolio. Instead, one should sit down every six months and review their investment portfolio. At the same time, one must review their financial situation. When doing this, one can do lower their risk while preparing for the future. With regular reviews, an individual will not run into any unpleasant surprises.

Tax: A savvy investor must use a tax loopholes or laws to their advantage. Ideally, one should sit down with a qualified tax attorney or accountant to develop a plan. With so many tax savings vehicles available, one should have no problem lowering their liability drastically.

When sitting down and analysing the situation, an investor can lower his or her risk while still enjoying solid growth in their portfolio. When following these tips, one will avoid name is mis-sold on investment



Maple Leaf Financial

Each mis sold investment case is different and they are all assessed individually. Sometimes we can claim because investments were simply unsuitable and they were mis-sold. In other cases it may be because of technical shortcomings in contracts, regulatory issues or a combination of these factors.

‘Most of our clients had no idea there was a problem with their policies or investments before they spoke with us. You have nothing to lose by calling Maple leaf financial investment mis-selling to find out about your own arrangements.

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Tim Capper

Bringing you financial news and information in plain english for Maple Leaf Financial. My aim is to help readers understand these often complex financial instruments.