Texas Investor Guide

The Texas State Securities Board has published a really nice guide for investors. The Investor Guide explains a lot of things about investing in general with a glossary of terms. In addition, it explains the differences in registration types for financial advisors. The best part to me is the validation of what I wrote about in my book, Meet Wally Street. The Reason You're Stupid. 2nd Edition and of course, the validation is how fraudsters steal your money and the tactics that they use.

I have been writing about investment scams for years with my three basic rules of investing. If you follow these three simple rules, then you stand a fighting chance against all the fraudsters out there trying to steal your money. You always have to be on guard however. Nothing is ever fool proof. 

1. Keep it Public
2. Keep it Liquid
3. Do Your Homework

Keep it public means to only buy investments that are publicly traded on a major stock exchange like stocks, bonds, CD's, mutual funds and exchange traded funds.

Keep it liquid means to only buy investments that you can get your money back within normal trade settlement within one or two business days. No exceptions!!!!

Do your homework means do a easy online checkup on your financial advisor and make sure they are licensed in your state for one thing. You can do this at Investor.gov. After you do that first critical step, then follow up and see if they have any complaints on their record and if so, what are the details of those complaints. Also, check other licenses like CFP, or other financial designations. Don't forget about insurance agent licensing either. You will have to go to the individual state insurance department web site for this information and you may have to dig around for it. It might be just as easy to call them for the information.

In the Texas State Securities Board's Investor Guide they talk about some of the scams that I have been writing about for years. Promissory notes, Non-Publicly Traded REIT's, Private Placements and other hocus-pocus investments that do not exist. All of these fail the first of my two rules above. None of these are publicly traded and none of these are liquid. That ought to be your first clue. If it isn't liquid and it isn't publicly traded, then hold onto your wallet. Somebody is out to steal money from you. Most Ponzi schemes come from these areas as pointed out in the Texas Investor Guide.

I highly recommend this Texas Investor Guide and you can get your copy by visiting the Texas State Securities Board web site here:

https://www.ssb.texas.gov/news-publications/order-2019-texas-investor-guide

My book Meet Wally Street. The Reason You're Stupid. 2nd Edition is available here and at your favorite ebook retailer. Make sure it is the 2nd edition!

 https://www.amazon.com/Meet-Wally-Street-Reason-Stupid/dp/1720401543