Safety in The Market

By Jason Fittler

Once again this week the Storm Financial collapse has raised its ugly head.

This article is not about the payout but about how you can make sure that this does not happen to you.

There are some simple steps to protect yourself when investing in the stock market.

1. Make sure all of your investments are held in your name. Sounds simple but you will be surprised how many investors lost money through having their shares held on trust.
2. Make sure you have regular updates from your adviser, either through monthly reports or online access to your portfolio.
3. Understand what you are invested in, this is easy with direct shares and property but more difficult when dealing with Trusts, Managed Funds and Super Funds.
4. Make sure your adviser knows you and you them, keep in front of your adviser. Make regular contact, do not just wait for them to contact you.
5. If borrowing to invest make sure that you are involved with the lending process, do not just let your adviser take care of it. Read the documents and know the risk.
6. Never sign something with out reading it. Get legal advice if you are unsure on anything. Legal fees are a type of insurance.

All too often investors skip some of these steps due to time constraints, you work hard for your money you need to take the time to make sure it is being looked after properly.