7.3.6 Questions to ask about an investment

Before you invest, ask questions. Take notes of the answers.

It's always better to get the answers to your questions before you invest than to discover a misunderstanding later. If you feel your questions are not welcome, or the answers are not clear, look for another advisor and another investment. Intimidation and lack of information are warnings that your money may be at risk.

Use the list of questions below to review an investment you are considering or already own. The questions do not have a single right answer, but the answers will help you evaluate the investment.

• Answer all the questions you can (you may not have answers for all the questions).
• If you don't know the answers to all the questions, do you know where to get them?
• If you cannot get all the answers, how will you decide whether or not to buy the investment?

(Adapted from "The ten questions to ask your advisor before investing your hard-earned cash," by Lauren Thompson, The Times (London), August 29, 2009).

See the video, How to choose investments.