When market returns are modest and interest rates are low, it is not unusual for investors to be interested in—and tempted by “golden opportunities.” The thought of making outrageous rates of return, cutting out the middle person, or getting in on the ground floor of a new opportunity can be very appealing. Consider the following menu:
- How to Earn A Million Dollars in Network Marketing, Jason Rash, The Social Celebrity, December 2019.
- The Quickest and Easiest Way to Make $1 Million in the Stock Market, Scott Alan Turner, C.F.P., (YouTube), Jan. 25, 2019.
- How to Become a Millionaire Through Rental Properties, Bigger Pockets, Brandon Turner, (no date).
- My Advice to Millennials: 4 Steps to Becoming a Real Estate Millionaire, Ethan Roberts, Auction.com, April 23, 2020.
- How to Get Super Rich Selling Super Yachts, Benjamin Staples, Bloomberg, Oct. 4, 2019.
Interested? Before you abandon your day job, or put good money down to get the secret recipe to wealth accumulation, include these steps in your vetting process:
- Look at reviews of the pitch man and the company.
- Ask for the names and contact information for persons who have been involved in the opportunity for at least two years.
- Review the opportunity with at least three colleagues who do not have a dog in the fight.
- Consider the opportunity cost. What does it cost to “get in,” and what are the ongoing costs (subscription costs, etc.)?
- Consult a financial advisor to analyze the impact the opportunity may have on your long-term financial plan if the opportunity works—or it does not.
Be especially alert to appeals such as, “secrets the I.R.S. don’t want you to know.” America remains a land of opportunity, but when blanket offers to earn easy money seem too good to be true, typically they are. Remember Shakespeare’s counsel: “All that glitters is not gold”
Randall E. Davey, CAP® is a financial advisor with Guide Advisors, Inc. In certain circumstances, he may offer insurance as a sole proprietor or through Guide Advisors, Inc. He resides with his wife, Bonnie in Mesa, Arizona. Randall can be reached at firstname.lastname@example.org or by phone at 425.478.5668.
Advisory services are offered through Guide Advisors, Inc., a Registered Investment Advisor in the States of Arizona, California, Colorado, Idaho, Kansas, Louisiana, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas and Washington. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the states listed above or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.The information contained in this material has been derived from sources believed to be reliable, but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed.