Searching through the finance, business and investing industries for ideas on what to invest in and who can help, watch out for the many too good to be true offers. No shortage of clever, emotionally targeted copywriting and advertising campaigns. All aimed at that raw Achilles heel – you and your money. Maybe you’re tempted to take a look anyway.
It could be a product, service, seminar or event promising …
financial freedom, become a millionaire, change your lifestyle, quit your job, while at the same time getting happy, fulfilled and being able to provide for your family, while you have as many holidays as you like, retire or just let their ‘system’ work for you as you relax in an exotic location managing your empire from your laptop… your dreams will come true.
How do you decide if an offer is just spruiking or a scam, or not?
At a ‘world’ investing event I went to a few years ago, in a cavernous but full auditorium, one of the presenters was selling a software system for SEO (search engine optimisation). He plucked a woman from the audience. Her dream? To set up an online business selling shoes. She had no business, no plan – no shoes! But within 10 minutes she had a website, he’d plugged in his miracle device and the site was getting hits and clicks and making money like you wouldn’t believe. How easy is that!?
Willing buyers ran to the back of the room, snaffling up the once in a lifetime offer, for the 99% reduced price – plus bonuses.
Often it isn’t until after the event – eg Storm Financial and others and even if there is seemingly tight regulation – that investors realise they’ve been conned. And even though what you bought wasn’t what you thought you were buying – it’s usually too late to recover your money.
In Guru Cops check out the huge lists of the people, industry bodies, government and non government.
Go to them for information and advice on how to avoid the many questionable money and investing promotions.
Two sites with lost of useful information, questions to ask, checklists, warnings and where you can report scams and scammers are:
- ACCC’s (Australian Competition and Consumer Commission) Scamwatch – It covers: Investment scams (get rich quick) especially offering tax breaks; cold calling; share promotions and hot tips; investment seminar and real estate scams; superannuation scams; business opportunity; guaranteed employment/income; up front payment scams and more.
- ASIC’s (Australian Consumer and Investment Commission) MoneySmart – Has loads of tools and tips and covers areas similar to Scamwatch.
Investing and Emotions
It’s pretty clear that a lot of investment decisions are made based on human psychology, especially your biases, attitudes and emotions.
- Fear and greed
Warren Buffett, the ‘Oracle of Omaha’, suggests when you’re investing:
Be fearful when others are greedy, and be greedy when others are fearful.
Investment advisers often argue that many portfolios perform better if managed independently, rather than do it yourself because decisions, especially when to buy and sell shares, are less emotive. They would say that wouldn’t they? Unfortunately I think the stats back them up.
Your attitude to ‘risk’ also impacts on your investments choices – see Day 2 Planning.
- Motivation, mentoring and coaching
Your financial planner should be able to explain ‘risk’ to you and how financial markets work. If you choose a financial planner or adviser you can trust it will be up to you how much you get involved in investing decisions, they might make most of the investment decisions for you.
Or, you might be more hands on, not use a planner, and get free or paid information from analysts and commentators, the media, books and the other resources you saw on Day 11.
TIP: Be careful. Experts and gurus with investing products and services are often brilliant marketers. Many play on your emotions FOMO, fear, greed, guilt, pride, envy and acceptance more than other industries.
So whatever you’re thinking of investing in, keep in mind some of these underlying behavioral drivers. And now you know what to watch out for and to avoid, hopefully your decisions and the gurus you choose will be good ones.
- Some of the Investing in You Topics and Strategies might give you ideas on getting your head and heart in a good investing place.
- These posts too Secrets, Success and Seminars – what would Branson and Bouris know? and 5 Tips to avoid investment scams
Any scams you’ve come across? Any gurus you recommend to use, or avoid?
Love to get your feedback (email) or leave a comment (below).
I’d be wrapped if you find BiG and my work helpful, and share it (take the challenge – subscribe keep up with my latest news ) with friends, family and others who want to build on their investments.
All the very best with yours.
Where to next:
Day 17 – Who are the best investment gurus? Part 2 | Find a Guru
Day 18 – Who are the best investment gurus? Part 3 | Rate a Guru
Day 19 – Who are the best investment gurus? Part 4 | Choose a Guru
Week 4 – Time to invest – just do it!
Where we’ve been – 30 Day Challenge Blog overview:
Day 2 – Where the Bloody Hell Are You?! Assessing your current financial situation.
Day 3 – The Lazy Investor’s Way to Set Goals
Day 4 – The Many Types of Investments and Strategies Available to You – the Investor!”
Day 5 – Who Can You Turn to for Investing Help? People and ‘Players’ in the Investment Industry (Day 7/8 W/E)
Day 9 – How to choose a financial adviser and advice you can trust. It’s all about the faith! Part 1 Financial planners
Day 10 – Part 2 Rate the Raters! Investing Rating sites, Top 10 …, Best …
Day 11 – Part 3 The Investing Information Tsunami!
Money and investing Media, Books, Magazines, Websites, Blogs, Podcasts, Webinars…
Day 12 – Part 4 Less Regulated Advisers – Analysts, Commentators and Gurus (Day 13/14 W/E)
Day 15 – Part 4 Less Regulated Advisers … Gurus