Rules to Invest By (aka Don't Be The Patsy)

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via Larry Swedroe on CBS News

Really, really obvious stuff, that is - unfortunately - only obvious in retrospect to most people...

  • Never buy an investment product if there's a commission attached to it.
  • Only work with an advisor who offers a fiduciary standard of care.
  • Only invest in a product if the seller can demonstrate that they also are investing in the same product.
  • Never buy a complex product; if you can't fully understand the nature of the risks and the costs, run as fast as you can because you can be 100 percent certain the complexity is designed to favor the issuer. In other words, you'll be the patsy at the poker table who doesn't know he's the patsy.
  • And if you can't adhere to these rules, hire a fiduciary advisor. The cost of the advice will almost certainly be a small fraction of the value added, simply by making sure you only buy products that are designed in your best interests.

The bottom line?  If you don't get it, don't get it...

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