TDCI Securities Division Offers Tips to Develop a Savings & Investing Strategy

Friday, July 22, 2016 | 2:10pm

NASHVILLE – Most consumers dream of financial independence, but so many fail to achieve it because they never take the first step and create a strategy for reaching their goals. The Tennessee Department of Commerce & Insurance’s Securities Division encourages consumers concerned with their financial well-being to begin by making a personal investment plan.

“Developing achievable saving and investing goals can help you on your road to financial freedom and security,” said TDCI’s Assistant Commissioner for Securities Frank Borger-Gilligan. “By taking the time to create a personal investment plan, you can better position yourself to afford the kind of lifestyle you want.”

The Tennessee Securities Division encourages consumers to use the questions below from the North American Securities Administrators Association (NASAA) to start formulating a personal investing plan:

  • What do I want to accomplish?

Set specific investment goals. Be sure to include target dates and dollar amounts so you have a realistic idea of how long it will take to achieve your goals.

  • How much risk am I willing to take?

Are you willing to risk losing some or all of your money in order to earn higher returns, or will you accept lower returns for the peace of mind of knowing your initial investment is safer? Understanding how much risk you are comfortable taking determines your “risk tolerance,” which in turn informs which types of investment products are most suitable for you.

  • What type of investment is right for me?

Each investment comes with certain characteristics, risk levels and potential returns. Understanding your situation—risk tolerance, time horizon and specific goals—will make it easier to choose the right investment for you.

  • Am I comfortable enough to do this on my own?

How much time are you willing to spend sorting through investment choices and keeping up with the markets? How confident are you in your investment knowledge and ability to carry out your decisions? If you need some guidance, you may want to seek the services of a financial services professional. Investing, especially with significant amounts of money, can be a complicated process. Many people seek the help of one or more financial services professionals.

Remember, investors should always independently verify investment opportunities, as well as the background of the advisor and company offering the investment. The Tennessee Securities Division can provide background information on those who sell securities or give investment advice, and about the products being offered.

Tennessee investors should insist on working only with licensed brokers and investment advisers, and should quickly report any suspicion of investment fraud. For more information regarding investing, contact the Tennessee Securities Division at (615) 741-2947 or visit our website: /commerce/section/securities.  

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