What’s worst than building your portfolio? Have the entire thing taken away from you in an investing scam, that’s what. Even though Bernie Madoff is safely behind bars, you still need to keep a close eye on your investments. The days of just sticking money into an account — or worse, going with that hot tip that seems a little too hot — are over. If you want to make money, you need to commit to staying in the game as long as it takes to get things done. That’s just the way it is.
First and foremost, you need to think about the level of control that you have over the money you invest. Can you withdraw it at any time? Are you going to have to follow impossible conditions that utterly trap your money right where it is? That’s not an investment that you want to deal with.
From there, you will want to do your homework. If it’s a legitimate company, there will be a website or something online about the deal. Look into SEC filings if you need to — it’s your money, so you owe it to yourself to do as much research as you can before moving forward.
Speaking of moving forward, you nee dot ensure that before you actually move forward on anything, that you really look at the way the business tries to recruit you. If you are only being pressured and rushed at every turn, that’s a sign that the investment opportunity really isn’t as great as you think it is. The truth is that if it’s an established investment program, you can move at your own pace. If someone tells you there’s no need to talk to a lawyer, a financial advisor, or an accountant about the opportunity, that’s a sign that they are trying to scam you. Any company worth their salt knows that these are three people that have the expertise to help regular investors do well.
Overall, if you really stop and think about what’s being said, there’s no reason why you have to be scammed in the first place. It all seems like common sense, and you might wonder why a guide like this would even be necessary. Unfortunately, a lot of people override their own common sense in the hunt for bigger profits, and it ends up taking away money that their families deserve. If you stop and see an opportunity that sounds too good to be true, remember — it usually is. Now, that’s not to say that you can’t make good money in the investing world. However, it can take longer than you think — not that it’s a bad thing to have to wait!