Investing for Beginners: Avoid the Tempting Scams

Investing for beginners, as well as those more financially savvy, can oftentimes be a daunting task as there are many investment choices and unfortunately many schemes making promises that can’t be kept. As recently exposed in an article in InvestorsInsight.com ‘Record Year For Ponzi Schemes’ investors are oftentimes lured in by investment schemes that are just ‘too good to be true’. “It’s not because they are unsophisticated, since Bernie Madoff’s client list was a virtual who’s who of the rich and famous, many of whom had extensive investment knowledge and experience. Instead, scam artists use well-known emotional triggers to get you to invest.”

“If it sounds too good to be true, it probably is.” Instead, I encourage serious retirement investors to stick with the strategy used by the world’s best investors. Focus on asset allocation, globally diversify, keep fees down with indexing, and rebalance to stay the course. For many that have gotten caught up in a Ponzi scheme or know of friends that have, now might be the perfect time to take matters into your own hands and start to manage your own investments. Many of the tools available today will guide you on how to invest your money with the goal of generating the most returns for retirement, accounting for risk and time frame, at a low cost. Try reading several Investing 101 articles that are out there as they are loaded with lots of great tips on finding the best investment vehicle for you.