2014
The State Securities Board announces the release of its newly updated flagship publication, the Texas Investor Guide, which was written to provide investors with unbiased, straightforward information to help navigate an increasingly complex financial marketplace. Investors will also learn the tools they need to investigate financial professionals and avoid fraud.
The publication is online and print copies are available by contacting either of the staff members listed above.
The State Securities Board has also updated Everyone's Investment Guide, an online-only companion presentation to the Investor Guide.
“I believe Texans will find these publications to be valuable resources in planning for and achieving their financial goals,” Securities Commissioner John Morgan said. “The new Guides, which have been thoroughly updated, describe the time-tested lessons for investing, including affording a comfortable retirement. Just as important, they provide important information to help guard against the devastating effects of investment fraud.”
As the Introduction to the Investor Guide says, “Investors have more responsibility than ever for achieving their financial goals.”
Yet whether it’s investing for retirement or other financial goals, many investors lack essential knowledge about the principles of investing, the role of stocks and bonds, the stock market, and the value of diversifying one’s assets. Nor do investors consider how badly investment fees damage their returns.
The Investor Guide was written to help investors – beginning and more experienced – to understand precisely these topics. And if an investor chooses to seek a financial adviser, the Investor Guide will help them ask the right questions and do the necessary research to increase the chances of a finding a trusted professional.
The Investor Guide specifically addresses:
- The damage inflation does to your portfolio, a crucial issue as people live longer in retirement;
- The difference between investing for growth over the long term, as opposed to parking money in risk-free investments;
- The difference in asset classes such as equities, fixed income, cash, and real estate, and how to invest using mutual funds and exchange traded funds;
- Principles of investing such as managing risk, asset allocation, diversification, and the impact of costs;
- Individual and workplace retirement accounts; pension plans; and Social Security;
- Warning signs of fraud; the importance of dealing only with registered brokers and advisers; common frauds and risky investments – including ones that promise too-good-to-true returns – and case studies of Texas investment fraud;
- Questions to ask to help you find a broker or adviser you can trust and how to weed out the financial professionals who claim an exaggerated or non-existent expertise.