Top tips for 2009

Before you make your next investment decision, consider these tips:

Pay off credit card or high-interest debt. Simply paying off your high-interest debt may be your best investment strategy. Few investment strategies pay off as well, or with less risk than, eliminating high-interest debt.

Boost your emergency fund. Many experts recommend keeping about six months of expenses in a federally insured account to cover an emergency, like sudden unemployment.

Don’t put all your eggs in one basket. One of the most important ways to reduce the risks of investing is to diversify your investments. Think twice before investing heavily in shares of your employer’s stock or any individual investment.

Beware of promises of “guaranteed returns.” Promises of high returns, with little or no risk, are classic warning signs of fraud. The potential for greater returns typically comes with greater risk. Remember -- if it sounds too good to be true, it probably is.

Pay yourself first. Regular automatic deductions from your paycheck or bank account into a savings or investment account can help you meet your long-term financial goals.

Review account statements. Some investors are reluctant to look at investment account statements during a bear market. But if you don’t read your investment account statements, you may miss warning signs for possible problems in your accounts that are unrelated to performance.

Do your homework. Asking questions about financial opportunities and checking out the answers with unbiased sources can help you make informed choices and avoid fraud.

For additional tips and more detailed information on the tips above, review the following materials: