Saturday, March 14, 2020

ALERT: Things to do and not do in the COVID-19 investing environment

·       Update your KYC profile especially risk capacity/tolerance ;time horizon; objectives

·       Avoid being sold mutual funds based on the Fund Facts Risk rating –these ratings are flawed

·        Do not let yourself be sold DSC mutual funds- liquidity essential in turbulent times

·       Avoid “advisor” recommendations to borrow for investing

·       Establish an emergency fund or add to it if you have one 

·       Do not loan money to your “ advisor “

·        Do not effect any transactions on the side with your “ advisor”

·       Think at least twice before being sold  a “ hot” IPO  

·        Consider equity crowdfunding at your own risk and peril

·        Negotiate lower fees for advice and seek out lower cost products that meet your needs 

·        Avoid internal bank “ ombudsman “ ; escalate complaint directly to OBSI

·       Stay away from “Free lunch” educational seminars -can be bad for your financial and physical health

·       Assume your “advisor” is influenced by biased dealer compensaion ; do not assume she/he has your Best interests at heart- be constructively critical

·       Check your Account statement for unusual transactions -respond immediately to any transactions you do not understand or do not agree with.

·        Establish a Trusted Contact Person with your financial institution.

·       Ensure you have a Power of Attorney in place in case you are ill for an extended period of time

·      And last but not least , have an up-to-date will just in case the worst happens. 

Please forward to family, friends, and colleagues.

Caveat Emptor

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