TDCI: Avoid Risks With Simple Investment Tips

NASHVILLE – Making a sound financial investment is among the most important decisions Americans can make when it comes to their futures. Before investing, the Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division wants Tennessee investors to always weigh their choices, understand their risks, and avoid scam artists.

“While all investments carry a potential risk, we urge Tennessee investors to invest from a position of strength and knowledge,” TDCI Assistant Commissioner for Securities Frank Borger-Gilligan said. “We’re here to help investors so they can make smart choices.”

Sound financial advice doesn’t have to be complicated or hard to remember. TDCI offers these tips as a good starting point for any investment strategy:

• Check the licensing of the product offered and the registration and enforcement history of the person offering the investment. Check them out with Brokercheck.finra.org or use the Investment Adviser Public Disclosure website before you invest.  
• Get written information about the product being offered for sale and make certain you understand it. Remember: professional-looking brochures and websites can be produced by a con artist. Do some digging.
• Ask questions. Is the product suitable for you? Is this an investment product that is long-term or short-term? Are there high fees for early withdrawal of your investment principle? Do you understand the risk involved in the investment opportunity?
• NEVER accept a verbal contract.
• NEVER sign anything before reading it carefully and understanding it.
• Take your time; don't allow anyone to rush your decision-making process.

If you are suspicious, contact the Tennessee Securities Division immediately. Contact the the Securities Division at 1-800-863-9117or by email at securities.l@tn.gov.

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