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Don't become another sucker

Posted by: Bob Maumill | 27 March, 2009 - 11:50 AM
Bob's Blog It may be the cynic in me but I have never trusted smiling men in suits, encouraging me to give them my money whilst telling me they can make me rich and secure.

In the end lots of the suits end up rich and secure and the poor souls who hand over their money end up on television looking stunned and stupid and sobbing to a reporter that “I trusted them, I left all the details to them."

Bad Blue.

Never trust anyone to handle your money without carefully scrutinizing their background, the fine print, their fees, where your money is going, what guarantees you have and whether or not the smiling paper shuffler in the suit is licensed.

There have been too many collapses, rorts and downright thefts from trusting, gullible people, many of them elderly who are simply trying to acquire some security by building a financial base for their retirement.

In doing so they often trust the wrong people. Of course we know there are no certainties when it comes to investing money but far too often victims who lose their savings admit they did little research, relied only on the promoter or the investment advisor for advice, then foolishly signed their money away.

When things go wrong victims blame the regulators, the system, the smarties who took their money – everyone except themselves.

But the truth is, that in many cases they invested willingly in schemes that were too good to be true.

Of course there are times when even the most prudent investors lose their money but on many occasions those who see their money disappear have been attracted by the prospect high of returns and a smooth sales pitch.

There are a few truisms investors should keep in mind when someone is pitching a deal offering returns that appear too good to be true.

Rule One: If it appears too good to be true, it probably is.

Rule Two: If it appears to be too good to be true, there is a chance it is too good to be legal.

Rule Three: Never, ever, part with your money until you have obtained independent advice, that means an opinion from someone other than the smiling, well dresses helpful 'expert' pushing the deal - and his own barrow.

With the passing of time, we tend to forget the lessons that history teaches us but for as long as I have taken an interest in news and public affairs issues, there have been regular collapses, defaults, con games, pyramid schemes, and a plethora of get-rich-quick rorts that have parted fools from their money.

Don't become one of them.

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