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Top questions to ask your broker, fund manager or financial advisor during this bear market.
We have put together a list of top questions to ask your broker, financial advisor or fund manager to ensure they are giving you the best chance to survive and prosper during this bear market!!
Questions for those who handle your money:
- Can I take advantage of this market decline?
- What experience do you have trading in a bear market?
- Have you traded options or futures and can they be used to hedge my positions?
- Do you know how to use put options as a hedge against my portfolio?
- How will my investment make money? (Dividends? Interest? Capital gains?) if we go into a full blown bear market similar to the market of 2000?
- Will you be taking fees if my portfolio losses money? if yes, why?
- How liquid is this investment or my portfolio? How easy would it be to sell if I needed my money right away?
- What are the specific risks associated with this investment if this market starts a dramatic decline? What is the maximum I could lose? (For example, what will be the effect of changing interest rates, economic recession, high competition, or stock market decline?)
- Have you ever managed money during a bear market and how did you perform?
Questions to ask your mutual fund advisor
- What specific risks are associated with this fund if we see continued selling?
- What type of securities does the fund hold? How often does the portfolio change?
- Does this mutual fund invest in any type of securities that could cause the value to go up or down rapidly in a short period of time?
- How does the fund perform compared to other funds of the same type or to an index of the same type of investment?
- How much will the fund charge me if and when I sell shares?
- Is the fund portable? If I move my assets to another firm, will I be able to continue holding the fund or will I need to liquidate it?
- Do you make more if I buy this stock (or bond, or mutual fund) rather than another? If you weren't making extra money, would your recommendation be the same?
- Are you participating in a sales contest? Is this purchase really in my best interest, or are you trying to win a prize?
- You've told me what it costs me to buy this stock (or bond, or mutual fund); how much will I receive if I sell it today?
- Where do you send my order to be executed? Can we get a better price if we send it to another market?
Questions to ask about the progress of your investments:
- Is the return on my investment meeting my expectations and goals? Is this investment performing as I was led to believe?
- How much money will I get back if I sell my investment today?
- How much am I paying in commission or fees?
- Have my goals changed? If so, are my investments still suitable?
- What criteria will I use to decide when to sell?
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