In many cases, the answer is no. 

If you purchase anything that uses electricity and is designed to last more than a year, odds are you will be offered an extended warranty at the point of sale. What are the chances of that product malfunctioning just outside the standard warranty term? Often, they are low – and the store or manufacturer is just reminding the consumer of that remote possibility in pursuit of extra profit.

Online research may reveal that the standard warranty on a product you want to buy has proven adequate. Not only that, some credit cards provide consumers with extended warranties. In some cases, buying a product with a particular card may lengthen the basic warranty period by a year.

Sometimes it can be smart to purchase an extended warranty. Most basic warranties don’t cover accidents, but some extended warranties do. You may not have to buy an extended warranty when an item is in your real or virtual shopping cart, though. Some retailers will let you buy longer warranty coverage after the sale, and online businesses like SquareTrade sell extended protection plans for some products at a discount.3

Mike Moffitt may be reached at Phone# 641-782-5577 or email:


This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Stock investing involves risk including loss of principal.

The economic forecasts set forth in this material may not develop as predicted.

Michael Moffitt is a Registered Representative with and Securities are offered through LPL Financial, Member FINRA/SIPC. Investments advice offered through Advantage Investment Management (AIM), a registered investment advisor. Cornerstone Financial Group and AIM are separate entities from LPL Financial.

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