Investments are an important part of planning for our retirement future. Professional investors know all the ropes and the best way to invest but most of us struggle along trying to make investments that will benefit us in the future. It’s like running blind. Try these top 10 investment tips and get the most out of your money.
1. Be Wary Of Unexpected Offers - When the phone rings or that email arrives presenting an extraordinaire offer that seems too good to not invest in, stop! Strangers who offer up schemes that offer to make you rich quick but require your investment right now, most likely are scams. If it sounds too good to be true, it most likely is too good to be true. Be wary and thoroughly investigate any of these offers before you part with any of your hard earned money.
2. Don’t be Pressured - Walk away from investment opportunities that attempt to pressure you into investing immediately. Any one that tells you tomorrow will be too late or that you have to act this instant speaks volumes towards a scam that is trying to part you and your money.
3. Be Skeptical Of Large Returns - Proceed with caution and be very skeptical of any investment that guarantees to double your money in a short period of time. This is just not the way investments operate. Sure occasionally an investment can double in a short time period but generally this type of promotion is false. You’ll be lucky if you even see your initial investment back, and if you do don’t expect a higher return than the average return an investment produces.
4. Get It In Writing - Get the investment plan and contract in writing. Read it over thoroughly and do any necessary checks to ensure it is legitimate and above board. Realize that in our hi tech world it is very easy to create false documents so although the written contract is a good start you need to validate it as well.
5. Get The Prospectus - A prospectus outlines the financial statements of the investment plan, and the information about the plan or company. It also outlines past performance and future projections. Be sure to read the entire prospectus including the fine print which can often have important information in it that you should know about.
6. Get Professional Opinions - You should always ask a professional to have a look at the prospectus and give you their opinion. Ask your stock broker, accountant, investment broker, or even your attorney before committing yourself to any investment.
7. Be Suspicious Of Special Deals - If you are offered a special deal just for you, or a hot tip that no one else knows about, or inside information “between you and me” you should become suspicious immediately. These ploys to make you believe that you will have an advantage over other investors are meant to part you and your money. They have no basis of truth to them, after all, insider trading is illegal and subject to severe penalties. Just ask Martha Stewart.
8. Choose Reputation - Always deal with a business or broker that is established and reputable. Never deal with anyone that you are unsure of, cannot confirm is associated with a reputable brokerage firm, or that is working independently. If a broker indicates he or she works for a specific brokerage firm like Waterhouse, you can verify this by calling the brokerage firm. Never part with your money unless you are 100% the investment is legitimate.
9. Confirmation - Check out any company or individual that is offering to sell you investments. Be sure they are licensed to sell securities. Find a local contact number by searching for Investor Protection for your area.
10. Run, Run Away Fast - When in doubt don’t just walk away from the deal, run away as fast as you can. If it’s an offer via the telephone hang up. Make no commitment to an offer you are unsure of or that appears to be too good to be true. Please don’t allow them to draw you in.
Investments are significant to a comfortable retirement in the future. So be sure that you invest your hard-earned money in sound investments. Follow these 10 tips for your investments and invest smart!
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