Investing is always a sound option, be it to secure money for the future or to make sure that the amount in your bank account manages to have a steady increase over the years.
So what exactly does investing mean, in the economic sense? According to the World Wide Web, this is the definition:
‘Put (money) into fiscal schemes, shares, assets, or a commercial venture with the expectation of achieving a profit.’
Investing is always a risky venture. It has its own list of pros and cons, but careful strategic planning and logical thinking are required before investing in a particular venture.
Cheats and scams in the virtual world
Because a large majority of the population do most of the monetary transactions online, one must be aware of the cheats and scams that exist in the virtual world. In fact, according to a 2011 statistic, investigations into swindles in securities and commodities have augmented by more than 50 percent since 2008. And now it has been close to a decade and that number has surely gone up further.
So how do we protect ourselves as well our hard earned cash? It will help to keep the following points in mind.
- No guarantees
There are so many people who invest their entire life savings into one particular scheme, just because it “guaranteed” a sure return. But you have to realize, there is no guarantee in the investment domain. Higher the reward, higher the risk. And although you might see some red flags, the many con artists out there have plenty of tricks up their sleeves, and will make whatever scheme seem absolutely real and failure proof.
- Do not invest more than what you can afford to lose
Ponzi schemes are aplenty online and make sure to investigate each and every plan or scheme before actually investing in them. It would be beneficial to get your lawyer to take a look at the fine print of the contract before accepting to put your money into the venture. Careless decisions may result in you losing your retirement money or even entire life savings.
- Avoid investing everything in one scheme
Diversify and segregate your investment portfolio so that you always have a second option to fall back on, in case the first one fails. That way you might lose all your money and still have some left over.
- Protect yourself from the beginning
It is essential that you find and obtain answers to whatever questions that you have regarding the scheme you are planning to invest in. Find out in advance, how much money you have to pay, how often should fees be made and how much will it cost.
Keeping a paper trail may seem old-school, but that’s what is going to be evidence should the scheme turn out to be a con. That way you have proof because now in the digital age, virtually everything and anything is hackable.
One final conclusion, reporting the scam immediately to the authorities will have a better chance to recover the amount lost.