Assessing Your Needs Before you seek the services of a professional stockbroker or investment adviser, take some ti me to evaluate your Selecting needs and expectati ons. This analysis will help you choose the right person a Stockbroker for the job. or • Defi ne Your Goals Securiti es Division Short- and long-term goals need to be The Securities Division of the Secretary of Investment identified. Determine the degree of risk State’s Office is responsible for regulating you are willing to assume to achieve the offer and sale of certain types of Adviser your fi nancial goals. investments known as securities. These may include many types of stocks, bonds, limited partnerships, viatical sett lement investment • Determine Your Net Worth contracts, some oil and gas investments, Figure out your assets and liabiliti es -- and other investment contracts. what you own and what you owe. Be sure Our major activities include registration to take into account any growing debts, of securities offerings, the licensing of likely tax increases, or personal or health stockbrokers and investment advisers, and crises which may strain fi nances. the investigati on of alleged violati ons of the securiti es laws. • Anticipate Life Changes Please call us with any questi ons at Consider any plans which might have an 601-359-1334. Mississippi residents may impact on your fi nances, such as making a also reach us by calling toll-free at career change, having children, paying school 888-236-6167. tuiti on or reti ring. Securities Division P.O. Box 136 Jackson, MS 39205 601-359-1334 www.sos.ms.gov Dear Fellow Mississippians: Selecting Your Adviser To select the best Be sure to look for certain characteristics and qualifications when choosing someone to manage financial adviser, you your investments. The following tips will help in your search: need to have a clear, precise and realistic • Review your personal financial • Determine who will be handling idea of your goals. Ask situation. your account. for recommendations Include income, debts, insurance, and If your financial adviser will be turning from friends, business emergency reserves of cash. Carefully consider over all or most of the day-to-day work on your colleagues, or other how much you can afford to invest and how much account to a junior associate, take the time to professionals you risk you are willing to assume. check out that individual as well. trust. Keep in mind that someone else’s ideal • Choose someone with whom you • Request examples of plans and financial adviser may not be right for you. Your feel comfortable. monitoring reports the financial goal should be to find an investment adviser or A financial adviser should always listen to stockbroker who will be able to understand and adviser has drawn up for other you and respect your chosen degree of risks and accommodate your particular investment status investors. objectives. He or she should also provide you Make sure that these documents met all and personality. with written information and take as much time of the financial plan criteria that would be The Secretary of State’s Office wants to as necessary to explain a proposed transaction. important to your investment decisions. An remind Mississippians to investigate before adviser should adhere to the investor’s goals investing. Anyone can become a victim of • Determine the adviser’s and determined amount of risk. a securities swindle. Investment advisers and educational and professional stockbrokers, as well as any investments or credentials and level of experience. • Determine the method of securities they offer, in most cases, are required Does the adviser have a business-related compensation by law to register with the Secretary of State’s degree or a professional designation? A good rule Advisers are compensated in three ways: Office. We keep a register of Mississippi of thumb regarding experience is five or more • By fee only (by the hour, by the project, or by investment professionals which includes their assets under management) years of previous experience in an investment- • By fees and commissions (fee for planning reported disciplinary history. related business. If you are considering using the services of a and commissions for implementation) stockbroker or investment adviser, call the • Obtain references from three or • By commission only for product sales Securities Division at 601-359-1334 (or toll-free more clients the financial adviser All three compensation methods have advantages and disadvantages. Select the method you prefer. 888-236-6167 for Mississippi residents) and we has counseled for at least two years. Remember, the adviser has the legal responsibility will be happy to help you. Secure the names of several long-term to disclose the forms of compensation to be sued clients and ask about their level of satisfaction, throughout your relationship. Sincerely, investment returns, and intentions about staying with the financial adviser. Avoid financial advisers • Ask to what trade organizations who pressure you to rely on the word of one or the financial adviser belongs. two clients. You can also check out a broker or Membership in industry groups providing MICHAEL WATSON brokerage firm using the free online Broker Check training and membership services may indicate Secretary of State on our website at www.sos.ms.gov or online at a planner’s dedication to the profession. Note www.finra.org. respected groups such as FINRA and SIPC and any designations such as Certified Financial Planner (CFP)..