What one investment is guaranteed to give you a 100% return on your money? The answer is…..none! I wrote this post to illustrate how con artists and scammers use tricky verbiage like this to entice investors to turn over their hard earned dollars. Anyone who offers you a 25%, 50%, or 100% guaranteed return on your money is lying. Let’s take a look at code words used by individuals trying to defraud you of your hard earned money.
1. I guarantee that you will…..
Most individual guarantees are not even worth the paper that they are written on. The only guarantee that you should believe when investing is one that is backed by the Federal government. FDIC and US Treasury guarantees are good as long as the United States government is still viable.
2. Double your money in..30, 60, 90 days, etc.
There is no savings account, CD, stock, bond, mutual fund or security that can guarantee you this kind of return in such a short period of time. The higher the return that you can get, the greater the risk you are taking. Any investment that has the potential to double your money also has the potential to lose all of your money.
3. This deal is only good for today and today only.
Always ask yourself what deal is so great that I have to give an answer right now. Con artists and fraudulent companies use high pressure sales tactics to force you into making irrational decisions. They know that you wouldn’t make these decisions if you had time to think it over.
4. You will be a millionaire in a few months.
Get rich quick schemes always offer big dreams only to end in disappointment. Is it possible to become a millionaire in a few months? It’s possible but highly improbable. Unless you hit the lottery, make it big on American Idol, or invent the next iPod, chances are it may take you a little longer than a few months to get rich.
5. My friend’s friend _________ got rich during this.
They always know a guy who got rich off this idea but it’s never the person that you are talking too. Larry, Rich, Mike or whoever got in early has made all of the money. Mike may live in a mansion and drive a Lamborghini but the guy who is pitching you on this great idea does not.
Always remember if any business opportunity or investment sounds too good to be true then it probably is.
