This post came to me while speaking with the Misses and it basically is a set of rules on how to avoid a ponzi scheme or a financial set back:
-If the rate of return promised on any investment is too good to be true then it usually is.
-If anybody is attempting to sell a financial product without you approaching them first, 90% of the time they will take advantage of you.
-Do not trust what they say as being true, always investigate and research any investment on your own.
-Make sure the company is a know by more than just the person selling it-Ask for business references/referrals.
-If you are offered a job that will generate future income from a company, but first you have to put up your own money prior to getting a paycheck. (That is considered as MLM Marketing scheme aka another version of a Ponzi scheme)
-If you attend a financial seminar at a major hotel or an urban exhibition center-90% of the time they are looking to sell you some get rich scheme which never works.
-If you are looking at buying term life insurance, but the agent is pressuring you to do whole life- politely walk away as this person does not have your best intentions in mind. (Whole life is set up to rob you of your hard earned money)
I hope you now are more prepared to avoid a major financial disaster and can avoid the fake mombo jombo that a lot of the so called financial gurus try to pull on regular folks by stealing our money and making more money off of us. Every year these fake professionals go out to different cities attempting to lure people to give up their hard earned cash, selling you a quick get rich software or a set of financial books and ultimately their goal is just to make another dollar off of you.
Be informed. Ask questions. Trust your gut feeling. If too good to be true-walk away.
Financial Quote of the Day- A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.
Suze Orman
