Investing: Know the Risks to Reach the Rewards

Investors have more responsibility than ever for achieving their financial goals.

Pensions are disappearing, Social Security is expected to replace less of the income a retiree earned while working, and the growth in wages has been near-stagnant for decades.

As a result, workers are fending for themselves by setting up their own retirement accounts or participating in 401(k) plans offering by employers.

Yet many investors lack essential knowledge about the principles of investing to make effective financial decisions. And far too many investors are lured into investment fraud by the promise of huge returns with little risk.

The State Securities Board’s Investors section was assembled to help investors of different ages, occupations, and financial goals invest wisely.

Guide to Safer and Smarter Investing

No jargon, no nonsense: The Texas Investor Guide explains the time-tested principles of investing and shows you the tools you need to research financial professionals and avoid fraud. You can read the Investor Guide online, or you can request print copies by emailing Robert Elder, Communications & Investor Education, at Provide a mailing address and the number of copies you would like to receive.

The Investor's Checklist

  • Receive complete information about the risks, obligations, and costs of any investment before you invest.
  • Don’t be rushed into an investment. Make a quick decision today and you may regret it for a lifetime.
  • Contact the Texas State Securities Board to obtain all regulatory information about firms and individuals handling your accounts.
  • Receive copies of all completed account forms and agreements.
  • Make sure you understand your account statements and check for accuracy.
  • Make sure you can access your funds in a timely manner and receive information about any restrictions or limitations on access.
  • Know precisely how much an investment is costing you in fees, commissions or other charges.