SEC Offers Advice for Investors in 2017
A recent Investor Bulletin from the SEC Office of Investor Education and Advocacy outlined ten tips for investors in 2017.
The SEC Office recommended that an investor:
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always research the background of an investment professional by using the SEC's website, Investor.gov;
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avoid "can't-miss" and "guaranteed-risk-free" investment opportunities;
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exercise caution when using social media as an investment tool;
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stay on top of fees associated with purchasing, owning and selling an investment product;
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be alert to the possibility of "affinity fraud," which targets members of specific groups (such as the elderly);
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make sure that all securities offerings and sales are registered with the SEC, or otherwise are exempted from registration, by using the SEC's EDGAR database;
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reduce investment portfolio risk by diversifying, particularly through the ownership of mutual funds or exchange-traded funds;
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avoid making common mistakes that can impair investment performance, such as focusing on funds from the investor’s home country or business, and relying on past performance to predict future growth;
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utilize SEC compound interest and savings goal calculators to make knowledgeable choices concerning investing and saving; and
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make informed investment decisions based on unbiased resources.