Protect Your Money and Financial Investments

by Gily Tenorio on July 2, 2010

in Financial Education 101


Earning money is hard but it is even harder if you lose what you earned and saved. That’s why it is very important to be careful and vigilant in choosing a financial investment. There are so many scams nowadays circulating online and offline.

In selecting financial investment, its advisable to study it first several times before investing your money on it. You can read below some tips and reminders before investing your money on these financial investments.

  1. Study first the financial investment that you plan to invest in, particularly the terms and conditions. Don’t invest if you do not understand the product or any of its terms and conditions. Study, research and examine first before you invest your money.
  2. Do not be enticed by the promise of extremely high returns. Usually, this kind of investment is a scam or Ponzi scheme. Understand also that the higher the return on investments, the greater the risk. Avoid pyramiding investment schemes, including internet-based such as HYIP, that encourage investors to recruit others in exchange for more income.
  3. Verify if the company is legitimate or scam by searching it in the internet.
  4. Keep in a secure place your proof of investments such as official receipts, transaction slips, e-mails, confirmation slips/e-mail, certificates, statement of account and the like.
  5. Make sure that the actual investment instrument is registered with the Securities and Exchange Commission (SEC), or has the prior approval of the Insurance Commission in the case of insurance products.
  6. Study and check the background of the issuing entity and the people behind it. You can check it online by researching information about the company. Investments products issued by banks should be authorized by the Central Bank.
  7. Deal only with solicitors, agents and brokers licensed by the SEC, or with employees authorized by banks if the product is bank-issued.
  8. Investment products/instruments like mutual funds are not insured by the Federal Deposit Insurance Corporation or if you’re in the Philippines, by Philippine Deposit Insurance Corporation.

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