Investments are a great way to make our money work for us and grow it over time. But with more individuals investing their hard-earned cash, it’s becoming increasingly important to be aware of the potential dangers from investment scams that lurk in financial markets. While avoiding such schemes may seem difficult at first glance, there are some simple steps you can take to protect yourself from being taken advantage of by unscrupulous actors looking to unlawfully profit off unsuspecting victims. In this blog post, William Schantz explains how investment scams typically manifest themselves and discusses practical tips for keeping your money safe – so you can worry less and enjoy the prosperity that comes with successful investing!
William Schantz On How to Protect Yourself From An Investment Scam
It is essential to protect yourself from investment scams and keep your hard-earned money safe, says William Schantz. Here are some tips you should follow when investing in order to avoid being scammed:
1. Do Your Research: Before investing, it’s important to understand the terms of any contract or arrangement that an individual or organization may be offering. Read all documents carefully and ask questions if something isn’t clear. Make sure you know who you’re dealing with and their qualifications, as well as what fees they charge for services provided. You should also research the company itself by reading reviews online, checking out financial statements, and searching for any negative press coverage. This will help you make an informed decision before investing.
2. Don’t Believe Promises of Quick Profits: Scammers often attempt to entice potential victims with promises of huge returns in a relatively short period of time. This is simply not feasible and is likely too good to be true. A legitimate professional will never guarantee you big profits or claim that the investment carries no risk.
3. Don’t Invest With Unknown Parties: If someone contacts you out of the blue, claiming to have an amazing investment opportunity for you, it’s best to ignore them and not get involved. Reputable companies do not cold-call people with offers like this; they rely on word-of-mouth referrals from existing customers or clients in order to find investors.
4. Say No to Pressure Tactics: If someone is pressuring you to make an investment decision quickly or bending the truth in order to get you to invest, walk away. A legitimate professional will never use high-pressure tactics and should be patient with your decision-making process.
5. Seek Advice From a Professional Adviser: It’s always wise, as per William Schantz, to seek advice from a qualified and experienced financial adviser before making any major investment decisions. They can provide you with objective advice and point out any potential risks associated with certain investments.
It’s estimated that 35% of Americans have been scammed by fraudulent investment schemes, costing them approximately $50 billion every year (AARP). Unfortunately, these scams are often hard to spot as they can be disguised as legitimate offers or even charities. One example is the Bernie Madoff Ponzi scheme, where investors were promised high returns on their investments only to find out later that they had been defrauded. By following these tips, you can protect yourself from investment scams and make sure your money is safe.
William Schantz’s Concluding Thoughts
Taking precautions before investing can help you avoid being scammed and keep your hard-earned money safe. William Schantz recommends doing your research, don’t believe promises of quick profits, don’t invest with unknown parties, say no to pressure tactics, and seek advice from a professional adviser when making any major decisions. These steps will ensure that you are not taken advantage of and that your money is secure.