Investing is essentially putting your money to work for you. You will earn or lose money based on the performance of what you invest in. While investing can be a great way to build your wealth, it’s important to know a few things before entering an investment opportunity:

• What are my goals? You should know what your end goal is for investing before purchasing anything. For example, are you looking to save for retirement or do you want to make money fast? How much money are you willing to invest and what type of return are you hoping for? Your goals will influence the type of investment you enter in.

• What is my risk tolerance level? Every investment carries some level of risk. Investments with a low risk will make small gains and losses while investments with a high risk stand to gain or lose higher amounts of money. Investors should consider how comfortable they are with smaller versus bigger losses and gains before entering an investment opportunity.

• Is the investment registered and the person selling it licensed? In the state of New Mexico, all securities and the people who sell them must be licensed and registered with the New Mexico Regulation and Licensing Department, Securities Division. Use the searchable database or contact the Securities Division to make sure everything checks out before you enter an investment.

It’s a time-tested truth that education is the key to success in nearly all areas of life—including investing. Consumers that make informed investment choices are significantly less likely to fall victim to fraud, and in turn, less likely to lose their money in unsound investments.