How to Avoid Unfortunate Investing

Before you become embroiled in a get-rich-quick scheme make sure that you know what you’re getting yourself into. 

The moment you get a few extra dollars in your pocket, investment advice starts leaping at you from every corner of your life- from a favourite uncle, from coworkers, from strangers on the telephone, from unsolicited emails, and magazine ads. Greet all unsolicited investment suggestions with an enormous amount of skepticism.

Start by looking for these signs of a possible investment scam trying to pluck dollars out of your wallet:

A promise that there’s no risk

A promise that you’ll make lots of money quickly

A promise of tax sheltering in an “offshore” investment

An offer of offbeat investment “opportunities” such as oil leases, artwork, coins, or jewels

A woeful story from a stranger who wants your help in accessing a large bank account or other funds

An investment based on information that, supposedly, no one else has access to

An investment plan that asks you to recruit other investors