Monday, July 11, 2016

Most people want to get  a better return on their savings and investments. They make two common mistakes.

a) Some want to study how to invest. But it does take a lot of time and effort. It is not easy to be an expert in inveting. Most people give up after a while, or after losing some of the capital in this pursuit.

b) Many resort to getting free advice from friends. The danger is that some of these advice may be conflicted. The friend may be involved in selling some financial products. They are likely to recommend these products, which are likely to offer poor value, after providing the sales incentive to the seller.

Most people actually overlooked the biggest risk in investing. They try to learn what is the best investment that they can make, but overlook to learn what are the investments that they should avoid. Many of these investments are scams that are out to cheat the unwary investor.

Many people lose a large part of their savings in investments that they should avoid. But they were not aware about it, until it is too late.

Many people have invested large sums of money in land banks, gold bars, trees and hybrids of these investments, only to lose their capital entirely.

Most people invest in life insurance policies. They did not realize that there are some good products but many bad ones. The bad product can take away as much as 40% of the accumulated savings. Instead of getting $500,000 from a lifetime of savings and investments, they get only $300,000 (after 40% is taken away).

These bad investments come back again and again in one form or another. Is the investor able to identify them and avoid them?

If you wish to avoid falling for these traps that have snared many other people, you should spend some time to learn about how to avoid them.

Register for this talk.

1 comment:

Anonymous said...

The biggest mistake is engaging an insurance salesman or woman. The investment is ruined from the start. Worse, many don't find out until it is too late.

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