Do Not Fall For These Scams

I would first like to apologize if this article puts down some of the work you do. I just want to share what I have experienced and come across as the most common scams. There are way too many out there and someone has to write about it. I write this today as one of my university friends just shared that he almost got scammed.

That being said, lets get right into it. Any post that says guaranteed returns, definite payout, work from home, less than 30min is definitely a scam. As a wise man once told me, “If it sounds too good to be true, then it probably is”. Not saying all but the majority of them.

Here is the most common scam. I am sure all of you have seen it and are tempted by whether or not it really works and to give it a try. Don’t be shy, I admit myself that when I first started investing, I clicked a few of those just to see what they were about. And it all ended with the same thing being, give us your credit card details or that you need to make a small deposit to get started. But I commend these scammers, most of them even have a template. And it would look something like this.

bo scam1

bo scam2

The next category is “investment/financial advisors or insurance brokers”. There are a few people in the industry who do great work, but the vast majority of those who have approached me or who I have seen sell to my friends/family come under this category. They are like anybody else and take it as doing a job. Besides these big investment companies lure them in with huge bonuses and fixed paychecks to get them started, and then slowly hit them with quotas that they need to hit to continue getting compensated as they were originally promised. That leads to most of them not bothering to find out and just use “attractive” numbers pulled out of nowhere to market these products. Most of these people are just pushing products from a bigger company just so that they can keep their job. Why is this true? Every single one of those insurance brokers who came to me to sell me something, I asked them to show me proof that they in fact have actually invested in it, and none of them came back to me. Especially in finance a little knowledge can be dangerous, and here are what some of them claim to lure you in. Here is an example,

fund scam

Now I have no idea where this guy pulled out these numbers from and key words to note are “closing”, “oversubscription” and “bonus features”. I am quite sure these are all words/phrases that were given to him in the manual of how to push products that you never owned, never tried but you want to make a commission out of it. What impressed me most is that he is committed to his script no matter what and he conveniently ignored all of my questions. YES EVERY SINGLE ONE OF THEM. I think i know why – because he has probably never heard of them before.

To add some perspective, we are at the peak of bull market run here. And no matter what you would have invested in, it would have gone up and that does not mean that you made a good investment. Its high tide now and even the ship that sank would still be thrown into the air. Instead of investing in his “aggressive” fund, had you closed your eyes and invested in the S&P 500, you would have made 25% annualized. Enough said, I rest my case.

Now I am not saying that its always like this, but there are really good salesmen/marketers who do not give you the whole truth. Not necessarily are they lying to you, but they just don’t give you all the information or they themselves do not have all the information. What do I mean by that? Take a look at this ad, this is the most over the top insane ad that I have seen.

PC: Avijeet Sen

Now CPF please tell me, which investment vehicle is this that GUARANTEES you becoming a MILLIONAIRE in 30 days! And the catch is that you only need to invest 1 CENT. I am sold. Alright I am off to top-up my CPF right now. See you guys – I can’t let this opportunity pass. But this does not even come anywhere close to the biggest scam in all of history. Watch this very well made video by Mike Maloney to find out why. This is important to understand and the sooner you know and prepare for it, the sooner you can plan for a future without any surprising road blocks.

Okay I was kidding. So to summarize just re-think what you hear and what you are invested in to see if its the best you could do with your time and capital you have now. I have in fact prepared an extensive basic financial course for all interested in having a solid base for your investments. Take a look at it right here! Good luck!

Stop Stressing. Start Living!