(MONEY Magazine) – -- Never forget that mutual funds, annuities and individual stocks and bonds aren't protected by FDIC insurance. Unlike CDs, these potentially higher- yielding investments put your principal at risk.

-- Don't accept cold calls. If you're a novice, investing over the phone with someone you don't know -- even someone from your friendly local bank --is a bad idea. -- Do your homework. Before taking a broker's recommendations, ask to see some objective analysis of a fund's performance and fees. Good sources: Morningstar or Value Line. -- Choose your broker as you would a doctor. Shop around until you find one you feel comfortable with. Ask about his or her education, professional background and investment philosophy. Insist on simple, clear explanations. -- Don't load up on proprietary bank funds. Always compare their performance with that of similar outside funds. If your broker insists on pushing only his bank's funds, take your business elsewhere.