Almost daily you hear the heartbreaking news of someone who cheated of their life savings. Giant companies have relied on parents to teach their children have failed to deliver. Rich and famous people have fallen for fraudulent investment schemes.Nobody, it seems, is immune to the lure of the scam or unreliable devices promising wealth and a secure future.
Why are so many people are tempted to make ruinous financial decisions? The main reason is greed coupled with ignorance.Hopefully by reading some of the most common risks of money below, the knowledge you gain will be able to improve your chances of protecting your investment improve.

• Abnormally high interest rates. With rock today under the low interest rates at banks, many tend to put their hard earned money to those who offer the highest interest rate. Unfortunately, the higher the rate the higher the risk you will lose your money. If you can not resist, at least, make sure the bank is insured by the PDIC and the amount that you put in will be in the amount of insurance coverage. I still urge caution in that strategy, especially if the money deposited may be needed in the short term. It may take a while to recover from the PDIC and the bank fails.

• pyramid. This racket is when you are made to invest money to get the right to recruit other investors, which in turn may have to recruit the next batch of investors in an never ending pyramid. Where income is based on recruitment and not to the product or service being sold it is a pyramid scheme. Unfortunately, it’s not easy for many people a legitimate multi-level business apart from a pyramid scheme. Usually you are told to fast because the company just starting out in this country and so you can easily recruit “downlines” that will make you money while you sleep!

• Other rich-quick business opportunities. Today one of the most common get rich quick schemes are a couple of fly-by-night franchises. If a franchise is too cheap then little more than a ploy to sell you their equipment and supplies. Think if it as easy to get rich why is not everyone rich?

• Extremely good deals. If something seems too good to be true, it probably is a scam! There are many types of fraudulent deals on offer, the fantastic as the Yamashita treasure to the more usual bargain offers. Besides checking it out in the relevant register of deeds, seek a reputable and recognized professional real estate help in verifying the real estate, since there are many fake titles.Typically, these deals have a short run to you too busy to complete the transaction without thinking.

• high risk investments. Well done, mutual funds, stock investments and foreign exchange trading can make money, especially for those who know what they do and can afford to lose their investment. We often hear that many people brag about how they made it big in this type of investment, but they were wiped rarely want to talk. However, many people are unaware that these transactions there is a possibility that they are a big deal to lose their money very fast!

• Preneed Plans. Most companies are not scams preneed.However, for various reasons, in recent years, some of the largest preneed companies were unable to their obligations to their plan holders. The resulting loss of confidence the industry has declined to a shadow of its former self. I think the industry and our regulators have learned many lessons from the debacle and hopefully there will be fewer such disasters. Despite this I would recommend that you have a fallback position in case history repeats itself.

There are many more existing schemes can be hatched and above. Nevertheless, what has been discussed, you infuse a healthy dose of caution. Perhaps this is sufficient to you take the time to think through more good where your hard-earned money.