How to Choose a Good Investment
Investing provides one of the best options for securing and increasing disposable income. However, whether you have billions or just a couple hundred to invest, the process is often riddled with risks. One of the greatest risks investors deal with is fraud. But in our world, fraud;s part of conducting business. Since the advent and growth of conducting commerce online, fraudulent activities continue increasing. While risk always factors into investments, creating security and avoiding fraud mean following some guidelines. Try these four tips to help secure your investments and your future. If it Sounds too Good to be True, Walk away! This timeless advice goes unheeded by many people falling victim to fraudulent activities. If an offer promises too much for too little, resist the urge to capitalize on the fairy tale guarantees and move on. More often than not, you stand to lose far more than you gain – if you manage to gain anything at all. If the offer still feels too good to pass up without digging a little deeper, then consult a professional for expert advice. Professionals know about major fraudulent activities and schemes going on, and can steer you in the right direction. Talk to an accountant, a lawyer, and sometimes even your bank, for professional advice. If they cannot assist you, they’ll someone who can. Be Cautious of all Unsolicited Offers In sales, representatives rely cold-pitching to sell products and services. This holds true for many legitimate businesses; including phone companies and insurance providers. However, con artists try this trick too, and they make good money preying on people’s needs, greeds, and bleeds (bleeding hearts).
If you receive an unsolicited call, email or letter about your finances, then verify how they got your information, ask for their name and company. Then look for the phone number or website without using any numbers they gave to prove their veracity before proceeding. Often, businesses, social media sites, and online survey platforms sell your personal information to third party companies. In most instances, the third party companies are a nuisance, but legitimate. But equally possible – these companies run by white collar criminals try making a quick buck off unsuspecting investors. Do Your Due Diligence Before proceeding with any investment, always do your due diligence. Research and ensure the safety of all investments. Find and record information about the person making the offer. If they claim to work for a particular company, verify with the company this person has a legitimate right to represent them. If the investor claims to work for himself, then verify the legitimacy of his. Legitimate businesses selling securities need proper licensing with the Securities and Exchange Commission, or some state securities regulator. Without that, there’s no safety net. This advice might seem unexpected, but very valuable. A friend might ask a favor for you to wire money to an offshore account or transport a box when you don’t know the contents. Sometimes the fraudulent activity is even committed by the persons you have given the authority to act on your behalf, such as your accountant or attorney. Be wary about your hard-earned assets. Read every contract carefully before signing, and do not agree to any favors for friends with shady backgrounds, or who cannot fully explain and disclose their schemes and why they want you to do the favor instead of themselves. Jonah Engler is a financial expert from NYC.