In a low interest-rate environment, investors are often tempted by the promise of higher-than-market yields. While there are legitimate opportunities to add yield to a portfolio, investors should be wary of those who market the promise of high returns. The risks associated with higher-than-market returns are seldom understood until it is too late.
We came across an article published by North American Securities Administrators Association (NASAA) that lists the top threats to investors. It is an informative read for anyone who invests money; especially since unknown threats can come from those you know or make perfect sense at the time.
NASAA warns investors to be on guard and avoid these financial product and practice traps, as well as provides additional resources where you can learn more about protecting your wealth. It’s not surprising that Ponzi schemes make the list.
Other “investment” parties with promises of too-good-to-be-true returns have contacted a few of our clients. They ran these “opportunities” by us before committing, and we were able to educate them before money was lost. We are sharing this information so if you are solicited with an investment threat, you will know how to avoid becoming trapped.
This information is provided for general information purposes only and should not be construed as investment, tax, or legal advice. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed.