MJ Gonzales │Executive Chronicles.com
One of the best notes to remember about wealth creation is learn not only how to save and invest, but also to protect it. This is important because even if you accumulate several assets, all of those would be nothing with a snap if you’re not careful. Thus, you also have to be vigilant in spotting “too good to be true” investments or also known as scams. Here are few reminders to avoid scams:
1,Don’t invest in something you don’t know or you don’t learn yet. Many newbie investors settle for ventures that they have ample training and researches. They rely on the bias opinions of their acquaintances or agents than do attending seminars. However, learning is the surest way to know if an investment is simple or simply impossible.
In his book “How I Made My First Million,” motivational speaker and best-selling author Chinkee Tan shared that you have to learn first the core of your endeavor so it’s easier for you to build it.
“Never invest in something you do not know, no matter how profitable maybe,” Tan shared.
2. Research and know the trend. In an Aksyon TV’s report, an alleged scammer tricked Overseas Filipino Workers (OFWs) through Facebook. According to one of the victims, the 21-year old suspect named Bonjomar Laguna promised that her investment will earn 40% interest in one week.
Compare to other legitimate investments, that 40% rate is huge and impossible to earn in one week. According to Philippine Online Chronicles, the average annual rate in the Philippine stock market is approximately just 14.77%.
3. Double check the company/ person. Thanks to technology, about businesses is easy. You can check a person or company has scam issues also by consulting DTI (Department Trade and Industry) or SEC (Securities and Exchange Commission)’s online. Don’t forget to know not only if they social media accounts, but if they’re registered these government agencies.
4. Read and keep your contracts, official receipts, and other documents of your transactions.
Don’t be ashamed of asking contracts and official receipts. First, they should automatically provide those documents when they entertain you. An official receipt is essential to get back with them when you have problem and to check if they pay taxes.