One of the most important steps to avoid investment fraud, is to always be in charge of your money! Knowledge is king, as you should never trust anybody without properly vetting them. When it comes to investing your money, there is no rush. You most likely have taken several years to accumulate your wealth, don’t be quick to make an investment. Ask for referrals, check to see if they are members of local organizations, and review their licenses. Be cautious of financial professionals who suggest you invest in something you do not understand.
Sales and tel-marketers are very good at keeping you on the phone. In-fact they are so good, you may even feel bad trying to get off the phone. Always treat any stranger as exactly that, a stranger, especially if someone is asking for your money. Keep in mind that you have absolutely no obligation to stay on the phone, and do not be afraid to hang up if you are not interested. A clear sign that you may be dealing with a con-artist, is when you feel pressured into making an investment decision.
It goes without saying, to never trust anybody who wants you to take a “passive” role in your investments
Advisors who lead to you believe that all you need to do is “trust” them, are not for you. An investment professional should make you feel comfortable to ask questions, and they should suggest regular meetings to review your performance. If you need to, take the time to educate yourself regarding investment opportunites and remember that constant vigilance is a necessary part of being an investor.
Investors today must be aware of promises for high returns and quick profits. Professional thieves always know what people want to hear, and capitalize on that opportunity. Keep in mind that there is no such thing as an investment without risk.
Unfortunately, greed can cloud an individual’s better judgment, and as a result lead you down a road you wish never existed. Only pursue investments that make sense, and are right for your individual circumstance, risk profile, and comfort. Many individuals in their retirement years have limited knowledge about handing their money. Far too many people have been victims of investment fraud because they have not taken the time to properly research their options.
Keep these simple tips in mind when investing your money, and you will be on the right path to enjoy your hard-earned savings well into the future. More information regarding securities and investment fraud can be found on the Securities and Exchange Commission website. If you feel that you have been a victim of investment fraud, please do not hesitate to contact our law office located in Detroit, Michigan, we offer free case evaluations.