Flying high on investments? Avoid scams!
If you’re just getting started with investing, you’re probably searching high and low for a legitimate high yield investment to sink some money into and make lots of profits. Everyone wants to find those high yield investments so they can do the same thing. The biggest problem, of course, is that many other people know how to prey upon those looking for good investments. Scams abound on the Internet, ranging from simple pyramid schemes where you can lose a few hundred dollars or more complicated investment schemes that can cost you thousands.
One good way to figure out if a legitimate high yield investment is a scam is to really think about what you’re being told, and why. Read about the investment with an objective eye. Is the reason it’s such a good investment being explained thoroughly, or is it just a lot of hype and promises designed to get you to sign up? The old adage really does apply—a high yield investment that seems almost to good to be true, probably is too good to be true.
Be wary of the person or the company that’s introducing you to the investment. What’s in it for them? Are they selling you the information about the investment? Be wary. This is how many scammers make their money. They talk you into paying them for information, and once you get the information it usually proves useless—or explains that by giving them even more money, you’ll get even more information. . . avoid these types of pitches. If the investment they’re touting were really a legitimate high yield investment, they’d be making all their money off the investment and wouldn’t need to sell their “secrets” or “system” to you.
One of most common scams involves pyramid schemes. These plans always sound like legitimate high yield investments to people unfamiliar with how they work, and people have been known to sink thousands of dollars into these “investments” before they realized they were being scammed. It’s easy to recognize a pyramid scheme, though, because you’ll probably have to recruit people so sign up for the plan or program, and you’re promised profits off of them and everyone else they sign up. It sounds fine in theory, but the problem with pyramids are that there’s nothing of value being offered. You make money from them signing up—it’s a simple passing of cash—with those at the top making the most and those lower down finding it harder and harder to get people to sign up.
Also, anyone who claims to have a legitimate high yield investment for you and is promising that you’ll double your money or make dramatic profits very quickly is probably just selling something, something on which you’ll lose all your money.
The best way to research high yield investments is by keeping an eye on trends, and reading financial magazines, and online finance magazines like Forbes and The Motley Fool. You’ll get sound investing advice, free of the hype and the desire to sell you something.
Photo Credits: 1
Originally posted 2008-12-26 05:47:15. Republished by Old Post Promoter
Related Articles -
3 Tips for Teen Investing Parents like to complain that their teenage children do not listen to them. However, when it comes to matters dealing with money, the opposite is actually often true. Teenagers often welcome the advice that their parents have to give regarding finances, money management and investments. In the past few years,...... -
Best Small Investments When you are looking to generate money through investing in the shortest amount of time, and you do not have a lot of money to begin with, then you are going to want to learn how to take small investments and turn them into big rewards. If you have a...... -
Loanio Roundup - Wall Street Crisis and the Resilient Dollar [caption id="attachment_203" align="alignleft" width="240" caption="The Resilient Dollar "][/caption] Welcome to the second edition of the Loanio Roundup. This edition focuses heavily on the national economy and peer-to-peer lending news. We hope you enjoy pursuing through the links below. Leave a comment and tell us what you think - we'd love...... -
Save Money with These 4 Tips [caption id="attachment_402" align="alignleft" width="160" caption="Balance your checkbook!"][/caption] There are ways that you can save money, and all you need to do is learn about managing money wisely to do it. You are not necessarily being frugal, per say, but rather you are learning how to be wise in the decisions...... -
What Are Safe Investments? [caption id="attachment_228" align="alignleft" width="240" caption="What are safe investments?"][/caption] If you are putting consideration into investing money, but you are not sure which is the safest way to invest your money, then your first stop should be someplace where you can get professional advice on the subject. The last thing that......
Related Sites - do you let your emotions manage your finances? Today we have a special guest post from brip blap! I won his commenting contest (through sheer persistence!) and chose the prize of having him guest post on my site. This is actually the first guest post on Mrs. Micah, which is exciting! He has some excellent advice to share......
- Five Financial Myths to Resist I imagine that most of my readers already have a pretty good grasp on personal finance; most of the people who have commented on my posts are financial bloggers themselves, after all, so there's the sense that I'm preaching to the choir (or to a group of other preachers, which......
- High Yield Savings Accounts - An Alternative to Stocks and Bonds A high yield savings account may be on your mind right now, as you watch the stock market float up and down late. It’s certainly understandable why you might want to find a home for your savings that is a little more stable than stocks or mutual funds. Right now,......
-
How to Keep Finances Growing No matter how much money you make, for many people, it's never quite enough. In order to get ahead, you'll need to find a way to keep your finances growing. There are many different ways that you can grow your income, both actively and passively, and over time, these small...... -
MoneyAisle - Banks Bid for Your Money This is a great time to be a consumer looking for a high yield savings account or looking to open a high interest Certificate of Deposit (CD). In our current economic climate, many banks are scrambling to line up new deposits, and you can take advantage of this by letting......
Tags: high yield investment, high yield investments, hype, investment schemes, Money, objective eye, old adage, profits, pyramid scheme, pyramid schemes, scammers, scams, thousands of dollars, types of pitches