investing

5 financial terms not to take for granted

Guaranteed
Guaranteed © filmfoto/Shutterstock.com

Of all the investment terms out there, none has the same persuasive power of the "G" word. On the surface, an investment guarantee sounds like the perfect choice, but, according to Viktoria Palushaj, market analyst for the CitrinGroup, investors need to peel back the layers that come with a guarantee. "Since no two guarantees are the same," she says, "investors need to know who is guaranteeing it. What is -- and is not -- being guaranteed? Can the company make good on its promise? And what evidence and strategy do they have in place to support their investment claims?"

Palushaj adds that since investors bear the ultimate risk of losing their money, they need to go as far as learning if outside third parties are involved, and what stake those parties have in the guarantee. Bud Hebeler, retired executive, author and founder of AnalyzeNow.com, suggests that investors be cautious about guaranteed products loaded with lots of disclosures and fine print. "When the guarantee has to be explained over 20 pages and it's not in 12-point font, investors should be on guard."

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

CDs and Investment

Can heirs cash an old trust?

Dear Dr. Don, The youngest of 6 children, I am 48 years old. My father joined the Navy at 22. In Italy, he met his bride and my mother, and returned to the U.S. to raise our family. In 1959, he bought a trust certificate... Read more

advertisement

Blog

Stephen Pounds

Brexit may hurt US exports, help interest rates

Voters in the United Kingdom have approved a referendum to leave the 28-nation European Union in a move that is sure to disrupt markets today and possibly longer.  ... Read more


Connect with us