Attorney Jeffrey P. Coleman disccusses how important it is to fully understand your investments.
This can be a real problem for you and your family, if a financial advisor doesn’t properly tell you all the risks associated with an investment. You could be led into a real problem that could result in substantial financial damages. You need to read the documents that you’re provided and make sure you understand them and if you don’t understand them; seek help. Ask your broker additional questions before you give your money to them. A perfect example of this has been coming up recently where people were sold Freddie Mac and Fannie Mae investments and told that they were guaranteed by the Full Faith and Credit of the Federal Government. As we’ve seen in the collapse of the financial services market, this did not work out to be the case. That’s an example of something where you need to keep asking questions until you understand your investments.