One of the keys to living a good life and being financially stable is investing. This is basically an act of making your money work for you, and this can be done by finding the right venues where your money can grow. It is one of the many steps in building wealth.
However, keep in mind that time is always of the essence when it comes to investing. Money takes some time to grow and even recover in case it is placed in the wrong investment. In this case, you need to be very careful when it comes to choosing the best investment instruments and places for your money.
There are a couple of red flags that you need to avoid. Here are some of them:
Sign #1: The returns are so promising that they sound impossible
There’s a phrase, “too good to be true.” And if a sales pitch sounds this way, then it probably is. Some people are drawn into some kind of investment because they are promised high returns. The returns and possible income may sound promising, but if how you’re going to achieve them is smooth-sailing or is not detailed to you, there’s a great chance that you are being scammed.
if it involves the recruitment of other members, you might be dealing with a Ponzi scheme. In investments, no great returns are guaranteed until you receive them.
Sign #2: You are being pressured
A salesperson who invites you to a sales pitch or business talk should always listen to your side and investment goals and capacities. But when you get a sense that your salesperson is pressuring you to invest, there’s a great chance that they are fulfilling a quota. It may also be that the company is on the red, as the salespersons are rushing to pool money to salvage the business and keep it afloat. Do not yield and do not be afraid. As an investor, you always have the advantage. You always have the power to say, “No”.
Sign #3: Lack of legal safeguards
Before you agree to any investment, it is always wise to read the contract that will be handed to you. If there are no contracts, walk away. You need to protect yourself from possible losses and abuses. If there is a contract and you feel that it lacks legal safeguards, ask your business lawyer on how you can turn things around.
Sign #4: Assets are not managed by a third party
Investment houses and companies not only have their own people managing investments and assets. They also hire professional asset management companies to audit the firm and incoming investments to avoid fraud. Your investment company’s lack of it is easily a red flag.
Always pay attention
Always invest with wide eyes open. This means that you have to be conscious of your decision every step of the way. It is your hard-earned money that is on the line, and you do not want to lose it to bad investments. Your future depends on the choices you will make today.