I recently received an email that caught my attention. It offered me a one-year membership in an investment service for only $995, a discounted price from the normal $3,995 price. The minimum goal of this service is an annual return of 52%!
This email advertisement went on to claim that last year this investment trading system picked 242 winning trades that had minimum gains of 10% or more. After listing additional benefits, the offer included a warning: “But don’t wait. You only have the next few hours to take us up on this offer as it closes at midnight on Friday. After that, everything will go offline. And there is no guarantee we will ever open up [this investment membership] to new investors again.”
Does anything smell a bit fishy to you?
I have no way of determining whether this particular investment specialist had 242 winning trades last year. Maybe he did. But this advertisement does not also tell us how many losing trades he had!
I continue to receive offers of miraculous investment opportunities and of phenomenal safe havens guaranteed to never lose a cent while providing attractive returns. Apparently, people respond to these advertisements because the advertisements and commercials just keep on coming.
Here is what we should remember:
- If something sounds too good to be true, it generally is.
- There are only 100 cents in a dollar.
- Risk and reward are closely related to each other.
Make yourself a promise: Work with a fee-only CERTIFIED FINANCIAL PLANNER™ professional who will put your interests first.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.