A middle-aged women and members of her family were jailed for coming up with an investment scheme that fleeced many people. It’s amazing how many people parted with their retirement funds and retrenchment packages to invest in the too-good-to-be-true pyramid scheme.
It goes like this. People think that they can make money quickly and become hypnotised into believing all the fanciful promises of people who claim that they can make them unbelievable income. How can people believe such nonsense? But many do going by the millions that were invested. Those who hocked most if not all their savings on this scheme ended up in dire circumstances.
Any investment that promises extravagantly higher returns must immediately raise a red flag. It’s just common sense to be cautious when dealing with investments. Another thing is to be extremely wary of any investment that you don’t understand. If it doesn’t make sense to you, then there is most likely something wrong with that. It’s best to walk away.
In this economy with times becoming even harder, some people may well be tempted to go for what looks like a sure-fire bet that is thinly disguised as a way to extract your hard-earned savings. It’s not only local people that will try to extract money from you but also increasingly people from overseas with clever schemes that are sugarcoated, high profile and claim to be doing good for society. Internet marketing schemers are sending daily too-good-to-be true sales pitches. How can you believe them all?
People are suckered into such schemes thinking they are all so helping other people less fortunate than themselves, happily comply while the clever overseas person flies back home with a big fat, bulging bank account.
Just the other day I noticed that a so-called investment writer was pushing a scheme to protect people from the catastrophic plunging of the Rand. I didn’t understand the investment and wondered what would happen to others who thought it looked good tried to invest themselves. There are basic ways to minimise exposure to local currency but all these are well-known and even your local bank branch can advise you how to go about investing.
It’s not only dubious people with investments schemes that you’ve got a watch out for. It also businesses who are becoming increasingly desperate and aggressive as the economy declines. Internet marketing schemers are sending daily too-good-to-be true sales pitches. How can you believe them all?
Be careful to examine closely the exactly what is on offer and make sure to check the fine print. In an economy as bad as this has become the shysters and crooks won’t go away but will actually multiply.
If there is anything you are uncertain of, make sure you contact a qualified professional who can give you an objective outsider’s view.
It’s the same with any small business undertaking – before you leap into anything get a second opinion or even a third.