Investing Dos and Don'ts

Investing your hard-earned money is a great  way to secure a financial future, but how do you know if you are weaving a safety net or becoming victim to an evil scheme? 

This covers all kinds of investments,  in stocks, real estate,  High yield investment (HYIP) or quick rich scheme,  recruitment or referrals,  solicit and other forms of investments.

Take heed of  these tips before writing anyone a check:

1 – DO think twice about unsolicited phone calls, offers in the mail, unexpected visits  and  text messages from people proposing profitable schemes that require to invest ASAP.

2 - DON’T  give in to urgent  requests for money placement.  Scammers will use excuses like “I need to activate your account by tomorrow or else you won’t  get the best rate,  or “ You should invest now before somebody does”.

3 - DO watch out for pyramid schemes, characterized by the need for you to recruit, refer, solicit from and sell to other people.

4 – DON’T dabble in foreign currency trading unless you have money you can afford to lose, have a good grasp of foreign currency trading and its risks, and know that you won’t be guaranteed any returns.

5 - DO ask for all the documents you need, including a financial statement, a prospectus, and additional company information before you actually  start investing.  Take your time in reading everything carefully, even the fine print, and take all the time you need  to think it over.

6 - DO follow  your instincts.  If an investment scheme sounds shady or too good to be true, then it most probably is.  There are hundreds of investment opportunities for you to check out, the one in front of you  won’t be the last one.

7 – DON’T  make any investments without first seeking advice from a professional. A lawyer , stockbroker, accountant, banker or government office like the Securities and Exchange Commission can help discern a bad investment from good one.

8 – DO ask for everything in writing, and make sure to demand official receipts in the name of whom you are dealing with.

9 – Not all businesses are given  government authority to engage in lending, selling of securities, investment taking and investment contracts.  Check out the profile and legal status of the person or company you are dealing with by contracting the SEC.

Source:SEC