Monetary knowledge

Or perhaps you already have limited investments, but you aren't sure if they should be more diversified?

You're not alone if you lack knowledge about personal finance, according to professionals.

"Even people who have fairly substantial investment accounts would do well to improve their financial literacy," says Taylor Payne, president of Payne Financial Advisors in Evansville, Ind.

That's always been the case. But nowadays it appears more attention is being paid to financial literacy in the wake of the collapse of Enron Corp., WorldCom and other corporate giants. Financial consultants say many of their clients are a lot more inquisitive about their investment choices.

"It's not so much that Enron employees were lied to and cheated, but it's that the company's workers invested so much in Enron stock and didn't diversify," Payne said.

Now workers with 401(k) plans and other investments are taking a closer look at their own situations.

Jana Kastle, a financial consultant with A.G. Edwards & Sons in Evansville, agrees that the Enron scandal had an impact. "More people now realize just because a company is large and established, you can't just kind of blindly trust it," Kastle said.

"It's always important to ask questions. No question is a wrong one or a dumb one. But being able to find a way through the maze of investment options can be challenging."

Payne advised that a potential investor who is unclear about what he's getting himself into should seek help from a reliable and knowledgeable professional.

"People shouldn't worry about how they may look asking the questions. Instead, they should be focused on understanding their investments and the potential risks associated with them," said Payne.

"If it can't be explained in a way that makes sense to them, they just shouldn't do it."

According to Payne, most people who are considering investments are hesitant about asking questions." They don't want to appear unknowledgeable. But we find some of the most intelligent people ask some of the most challenging questions," he said.

It's not necessary to return to college classes to become literate, however, Payne said. People can pick up a lot of knowledge from regularly reading newspaper and magazine articles on financial matters, he said.

But Payne cautioned that there is "an information overload" to some degree on newsstands and the Internet. "The various Web sites should be viewed with the understanding that the information comes with no guarantees. Use the information as supplemental material. Don't rely on it entirely."

Payne further advised to never follow an investment service online, over the phone or in print without meeting a human being or paying a fee for the advice.