In the current rocky financial environment, many investors are being enticed by new, high-yield investment products that seem to be the answer to their poorly performing portfolios. Although many of these products may be touted as a surefire way to start getting high returns, investors should be aware that there may be more to these investments than meets the eye.
To determine if a particular high-yield investment is right for you, you have to first understand how the investment works and what to look for. Here are some things to consider before you decide to roll your investment funds into a flashy, new investment product that seems to promise high returns:
- Higher returns always come with higher risks. If an investment offers significantly higher returns than other investments, you can bet it also comes with a higher risk. If someone is pitching a “completely safe” or “risk-free” high-yield investment, then it’s probably an investment scam.
- Many of these investments come with high or hard-to-spot fees or commissions. Although it might not be clear up front, it’s worth digging into the fine print to find out about any fees or commissions that may apply.
- If you don’t understand the investment product, it isn’t right for you. Ultimately, if you don’t understand an investment product after you’ve asked lots of questions and done your own research, then it probably isn’t the right investment for you.
If you have lost money because your broker or financial advisor failed to fully explain the risks of a high-yield investment product, you may be able to pursue the recovery of your losses through FINRA mediation, arbitration, or litigation. For help with your potential case, please contact an experienced investment misconduct attorney with Meyer Wilson today.
The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .
