Today, I want to start a new topic discussing the important area of “How To Protect Yourself From Financial Fraudsters.”
As I frequently tell my clients, one of the biggest obstacles to financial success is avoiding mistakes. This includes steering clear of folks who are deceptive and not forthright. In the upcoming videos I will share a few red flags to recognize to help you avoid these charlatans, and today I will share just two:
The first is folks that claim High returns with no risk: Risk and return are inextricably linked. If you want to make a lot of money, you need to take a high level of risk. There is no silver bullet that can circumvent this investment axiom. If anyone promises you a high return with no or minimal risk, run the other way. They are either an ignoramus or a fraud, and you’d be better off avoiding them.
The next is pitching you on an Exciting investments: Contrary to what many people believe, the level of exhilaration experienced with successful investing should more closely resemble watching paint dry than a day at the racetrack. View anyone who approaches you with an exciting opportunity cautiously since excitement generally runs against sound investing principals. A boring process will help keep investors out of trouble and simultaneously let compound interest work its magic over many years. This dull process is the surest way to achieve long-term financial success.
In the upcoming videos, I will share a few more red flags to look out for.