Donna Owens, director of the Ohio Department of Commerce, is encouraging Ohioans to remember the basics of sound investing when saving for retirement. "As more and more Ohioans become responsible for their retirement savings, some simple, straightforward facts bear repeating," Director Owens said.

To coincide with the first National Summit on Retirement Income Savings at the White House (June 4-5), Director Owens is encouraging Ohioans who are saving for retirement to set realistic investment expectations, diversify their portfolios, recognize that all investments carry risks, and investigate before investing.

1. Set realistic investment expectations. "Despite annual stock market returns of 20%-30% in recent years, Ohioans should keep in mind that large companies traded on the stock market have historically averaged a 10% annual return," Ohio Securities Commissioner Thomas Geyer said. "We need to remember that a 10% annual return on an investment is considered good and that 20%-30% annual returns will not last forever."

2. Diversify your investment portfolio. "Diversification means owning a variety of investments with different levels of risk and different expectations of returns," Commissioner Geyer explained. "In a well-diversified portfolio, when one investment is yielding a low or negative return, another investment should be yielding an above-normal return," he added. "Diversification can stabalize a portfolio through economic upturns and downturns." He encourages investors to consult with their investment professionals to determine an appropriate level of diversification for their particular situation.

3. Realize that all investments carry risks. With increasing numbers of Ohioans becoming responsible for their retirement savings, it is essential that they realize that they can lose money on any investment opportunity. "No matter what anyone tells you, it is vitally important to remember that there is no such thing as a 'guaranteed return' or a 'can't miss' deal," Commissioner Geyer said.

4. Investigate before you invest. Before making any investment decision, call the Division of Securities Investor Protection Hotline at 800-788-1194. "Through the hotline, you can check to see if your securities salesperson and brokerage firm are licensed to sell securities in Ohio and if there are any disciplinary records against them," Commissioner Geyer said. Another feature of the hotline permits prospective investors to check on whether a security is properly registered with the state of Ohio. Callers can also obtain investor education materials by calling the hotline.

In conclusion, Director Owens said, "The best advice that we can give is to encourage Ohioans to begin to save and invest early in life. Those who begin to save and invest in their 20s and 30s will, in all likelihood, be able to sit back and watch their retirement savings grow and grow."

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The Division of Securities promotes an honest and fair securities market where individuals and businesses can raise capital and investors can expect a fair return on their investment. Other Commerce divisions enforce regulations regarding industrial compliance, financial institutions, real estate, liquor, auctioneers, and unclaimed funds, among others. The department's Internet address is www.com.state.oh.us.