3 minute read
Too good to be true?
Are the investments being offered to you a little too good to be true? We look at some past examples where people have lost capital through fraudsters and failed schemes, and reveal some red flags you should look out for.
We’re all familiar with the saying, “If the investment is too good to be true, it probably is”, and there is a good reason for that. There is no shortage of individuals, even companies, that will try to sell you an investment under the false promise of large, guaranteed returns – often within a short period of time.
It’s happened before – it will happen again
You may remember the notorious Barlow Clowes case, where around 15,000 people, many of them retirees, were invested in the
By Jon Pemberton, Partner,
invested in low-risk government gilts but promised returns higher than gilts were paying.
Equitable Life carries another cautionary tale. This was a reputable company which came un - ers to be caught out when inflation and interest rates dropped, leaving the mutual insurance society struggling to fund its commitments.
In 2009, there was the welldocumented fraud of Bernard Madoff – a ‘Ponzi’ scheme where money from new clients was used to pay older ones. Bernard lured investors through promises of between 10 and 12% annual returns on investment – by the time the US government caught up with him, he had cheated clients out of $65 billion.
These are just a few examples. As long as there are markets, there will be those trying to get rich by selling hope to the less informed. Those taken in by these schemes were intelligent people – victims often of misleading claims by an individual or company they be - said,
“There are some frauds so well conducted that it would be stupidity not to be deceived by them”.
A statement that describes the cunning, charm and resourcefulness of fraudsters, and the vigilance and discernment we must maintain whenever we are asked to invest our money.
Avoid investments that sound too good to be true
Be wary of promises that guarantee high returns. There aren’t any absolute guarantees with investment, and you’ll likely get a lower return the safer your money is. Compare the yields that have been promised with current returns on well-known stock indexes. If the numbers don’t match up, where could such returns possibly be coming from?
Be wary of anyone pressuring no reputable professional would push you to make an immediate decision.
To protect the financial security you have built for you and your family, consult the advice of an expert that is regulated by a reputable authority before committing to any investment being sold to you – and focus on the fundamentals.
You have probably worked hard over decades to build your wealth for you and your family – if something seems too good to be true, don’t put that wealth at undue risk.
All advice received from Blevins Franks is personalised and provided in writing. This article, however, should not be construed as providing any personalised taxation or investment advice.
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THE Torre de los Perdigones is set to become one of the main tourist attractions in Adra.
Mayor, Manuel Cortes, confirmed that the main objective is to beautify the surroundings of the area given that it is the access area to the most emblematic monument of the municipality.
It is also part of the commercial area and part of the touristcultural itinerary of the municipality where, in turn, there are Civil War airraid shelters and the Fishing Interpretation Centre.
The proposal put forward by Cortes emphasises the overall improvement of the
LIFEGUARDS will spend more time watching over the beach of the new promenade in Almeria this summer.
Almeria Council has reorganised the lifeguard and first aid service on the beaches of the municipality in order to extend the timetable and to also incorporate the stretch of coastline corresponding to the extension of the promenade.
Shifts are split into three seasons, the first season which ran from Maundy Thursday to Easter Sunday added five days to the timetable compared to the timetable in 2022.
Season two which runs landscaping of the area with the incorporation of new plant species and an irrigation network. It also includes the renovation of the access staircase and the incorporation of new lighting for the whole of the ascent and the complex in general.
TORRE DE LOS PERDIGONES: A photogenic tourist spot for all citizens.
One of the most striking actions within this proposal is the adaptation of the landmark consisting of the ship’s rudder and the Indalo, the plan is to enhance this key point by placing an Adra sign thereby creating a photogenic tourist spot for all citizens.
