While you`re not expected to have a crystal ball, you need to be as specific as possible with the numbers. For example, if you know that it is entirely possible for your client to lose 15% of their investment during a fluctuation, enter this number in your disclaimer. That way, everyone is on the same page. Seeing that “you may incur a total loss greater than the amount you deposited” is a big deal. Not only could you be completely wiped out, but you could also find yourself in the red. If this disclaimer wasn`t so specific, people could go ahead with their investments without knowing they might lose everything – and more! Melyssa does a great job skipping the legal language and getting straight to the point. You don`t have to be a legal or financial expert to understand what she`s saying. Plus, she goes straight out and says, “I accept no responsibility for any loss or damage you may suffer.” Each disclaimer is intended to exclude all liability, but it ensures that its readers understand that it is not responsible for anything you do after reading its information. From top to bottom, this investment exclusion could not be clearer.
For example, if you go to the gym and see a sign that says “Use fitness equipment at your own risk,” this is a disclaimer. The owner of this gym will tell you that if something happens to you while using the equipment, the gym is not responsible. So if you drop a dumbbell on your foot and break it, the gym won`t pay your medical bills. And if you try to sue them, the gym owners will say you saw the sign — their disclaimer — and chose to train there anyway. Investments involve risks, including potential loss of capital. No investment strategy can guarantee a profit or protect against losses during periods of declining values. The opinions expressed are subject to change without notice and are not intended to provide investment advice or predict future performance. Past performance is no guarantee of future results. Consult your financial advisor before making any investment decisions.
In the United States, the Securities and Exchange Commission (SEC) requires mutual funds to include a very specific disclaimer when providing information to potential investors. In SEC Rule 156, you`ll see that all of their correspondence must include the following statement: “A fund`s past performance does not necessarily predict future results.” This disclaimer from The Steady Trader doesn`t use specific numbers, but it`s easy to say it`s a very, very risky investment: in addition to the “do your own research” disclaimer, there`s another general disclaimer – the one that mentions past performance and future results. It is important that warnings about investment risks are clear and sufficient not only to provide legal protection, but also to ensure that the message actually gets through. Companies and advisors should only sell products with a disclaimer that clearly communicates the actual level of risk. Unfortunately, what should be done and what is common practice are two different things. As an investor, it`s important to know how much of your money you could lose and what circumstances could lead to it. If you feel uncomfortable with the risks of investing, remember that there are always less risky alternatives. JPMorgan Chase and its affiliates do not provide tax, legal or accounting advice. This document has been prepared for informational purposes only and is not intended to provide tax, legal or accounting advice and should not be relied upon as such.
You should consult your own tax, legal and accounting advisors before making any transaction. For example, Personal Capital is a free software platform that allows you to access all your investment portfolios in one place and, if you wish, get advice from their experts. Here is the disclaimer they have on their website: You agree to be bound by any confirmation, consent or agreement you submit on or through the Site or any other aspect of the HII Services that you access through computers or other electronic devices, including the Internet, telephone and wireless devices, including, but not limited to, your consent, Receive communications from us only by electronic transmission. You agree that if, in the future, you click on a “send” or “I agree” or any other “button” or input field of similar wording using your mouse, keystroke or other device, your consent or consent will be legally binding and enforceable and will be the legal equivalent of your handwritten signature. No matter how much expert advice you receive, investing your money in something, whether it`s stocks, bonds, mutual funds, or a start-up, is risky. That`s why investment warnings are so important. The opinions expressed on the blog are for informational purposes only and are not intended to provide specific advice or recommendations to individuals or to any particular security or investment product. It is solely intended to provide education about the financial industry. The opinions expressed in the comment are subject to change at any time without notice. Nothing in this blog constitutes investment advice, performance data or a recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is appropriate for any particular person.
