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If It Sounds Too Good To Be True

Ever heard the saying "It sounds too good to be true". It really is a valid point, especially in the finance industry.

When we hear of returns especially in this current market being offered from 15-30% the "alarm bells" should start ringing and big warning lights should flash all around the article your reading which offers such a return. There are numerous schemes that offer these returns, which are seeking your hard earned pennies to invest in or should we say possibly lose your money in. One thing you need to clearly identify and investigate is where specifically where your funds are being invested.

If someone offers you returns from 15-30% it immediately should "Sound Risky". You should ask the party offering you this return, where are you investing my funds, who will hold my funds, who will benefit from the investment of my funds, have you got references from your bankers, lawyers & accountants, can we meet the parties the funds are going to, can we inspect the property (if it is a property related matter).

By doing the above investigations your simply doing your own due-diligence. Don't become a statistic like other investors who simply hear the high returns offered and the greed factor sets in and any thought of due-diligence is simply forgotten. I bet the investors in the US Bernie Madoff approx. $13bil and Australia Graham Hoy approx. $80mil all wished they had undertaken there our due diligence.

Simply put in this current economic climate if someone offers you significantly high returns, become suspicious. What you need is a transparent investment, by that the investment or party offering you the investment needs to provide you with sufficient material for your to fully investigate and understand where your funds are being invested.


Disclaimer: The information provided in this article is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation, and needs.

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