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Most investors don't realize that when they walk into a bank or brokerage firm branch, the representatives there are essentially free to emblazon their business cards with whatever titles they please -- financial consultants, advisers, wealth managers, to name a few. But if you're looking for someone who is qualified to give smart advice about all aspects of your financial life while keeping costs down, you may not be in the right place. The issue came up again earlier this week in an article by my colleagues at The New York Times, who quoted former JPMorgan Chase brokers as saying they were encouraged to promote the firm's own funds to customers even when more competitive investments were available. Not only were the funds expensive, but the bank also exaggerated at least one investment portfolio's returns. [ABSTRACT FROM AUTHOR]

JPMorgan Chase's giant trading loss began as an effort to manage the bank's risks -- a move that turned into something that now looks more like a speculative bet. But don't think this is solely a big-bank problem. Even small investors can run into trouble discerning the fine line between hedging and risk taking. Investors can try to limit their risks by holding down their stock exposure through diversified investments. But many people are still depending on the market's engine -- perhaps more than they might think -- to maintain a comfortable lifestyle in retirement, say, or pay for their children's college educations. [ABSTRACT FROM AUTHOR]