Questions to ask before investing (the US)
Plain-English basics for people in the US. This explains how things work and where to check the official rules. It never picks a product for you.
Ten questions for any investment
- What exactly is it? Can you explain it in two sentences? If not, wait.
- Who is offering it, and are they licensed? Look them up yourself (see below).
- How can I lose money? Every investment has a way. If the answer is 'you can't', walk away.
- What are all the fees, in money? Yearly, entry, exit, platform, adviser.
- How do I get my money out, and how long does it take?
- Who holds my money? A licensed custodian, a bank, or the person asking?
- How is the person paid? Commission can change what they suggest.
- What happens if the firm closes?
- Where is the full record, including bad years?
- Why the hurry? Real investments are still there next week.
Who can give personal advice in the US
Only a registered investment adviser or a broker registered with FINRA may tell you what suits your situation. A friend, a group admin, an influencer or a website can explain things, but not choose for you.
Check: the SEC's Investment Adviser Public Disclosure. Guide: the SEC's Investor.gov.
General information, not a recommendation. This page explains how things work. It does not pick a product for you or say where to put your money, and it does not consider your goals or situation. For personal advice talk to a licensed adviser in the US - a registered investment adviser or a broker registered with FINRA.
Frequently asked questions
- Is it rude to ask how someone is paid?
- No. Licensed advisers expect it and must tell you.
- What if they won't answer?
- Then don't invest. A real product can be explained and checked.
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