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 Blog Post Promoter
Related Articles -
4 Tips for College Students Budgets /caption] If you are a college student, then your primary focus is probably set on your studies and trying to maintain your education so that you will be benefited in the future. Unfortunately, one of the things that you may not be putting enough consideration into is how you are...... -
Is Your Online Bank Safe? [/caption] Online banking has become incredibly popular and it is very useful. For those that rely on online banking, there is an accepted risk that goes with exposing your financial information online, but before you jump in, it is a good idea to do a little checking to make sure...... -
Handling Debt Collection Phone Calls /caption] If you are late on a bill, or more than one bill, then you are probably beginning to receive collection calls from people who want payments from you. You may find yourself in the middle of what is essentially a recurring nightmare of callers who are absolutely insatiable and...... -
Finding a Legitimate High Yield Investment Most people hear the words High Yield Investment Program, or the acronym HYIP, and many of them quiver. This is not completely unnatural, because high yield investments only come with high risks, and most HYIP opportunities are not even legitimate to begin with. There are simply too many people out...... -
Stocks are a Great Investment /caption] Most people recognize that stocks are an excellent investment, but purchasing stocks can be a confusing process. This is especially true if you have little experience in investing, or no experience at all. You can turn the stock buying process into a good investment even as a beginner, and......
Related Sites -
How to Teach Personal Finance to College Kids The college crowd is among the most active users on the web, one can only hope they find resources like this out there. We've looked at how to teach personal finance to high schoolers, but how does it differ from the money management skills needed in college and beyond?...... -
Vanguard Starts a New Investing Blog Vanguard, one of the leading firms in the investment management business, has finally ventured into the blogosphere. Vanguard is very well known for their pioneering work in passive investing among the personal finance and investing community for their low cost index funds. However, if you mention their name to someone...... -
are 'high yield' savings accounts worth it? Jim at Bargaineering had an insightful piece a few days ago: Your Best High Yield Savings Account? in which he pointed out that there's not much difference between 1.5% and 2.05% when you think about it. We've had an account with HSBC for years (three, actually) and now that...... -
Are You Ready to Be a Financial Success? There comes a time in everyone’s life where they begin to take a hard look at their finances. If you weren’t born into wealth, you’ve worked hard to get where you are and it can be frustrating if you feel as though you’re only treading water. Every single one of...... -
Best High Yield Savings Accounts Not all high interest savings accounts or money market accounts are alike. If you look at it from the standpoint of savers who decide to open such accounts, you’ll find that we’re all prompted to select savings accounts according to various reasons and criteria. Based on where we are in......
