https://www.cnn.com/2022/02/16/investing/ponzi-scheme-explained-zachary-horwitz/index.html
I am NOT an investment advisior! Don’t ever do anything I say or talk about without doing your own due diligence and talking to your own financial advisior.
That said: People get taken for a ride all the time because their friend or somone in their family said that something was a good investment and they should give them their money to make exhorbanite returns as well. Have you ever heard of the saying “If it sounds to good to be true, it probably is?”
Well, it probably is!! I know I’ve heard my fair share. Some of the ones that I’ve heard of I just can’t believe that people would fall for it. Anything that says it can return more than 6% annually is something that I’d question. When I set up my investment funds for monthly income I was shooting for an 8% return year over year, and even that is hard to find.
Ponzi schemes steal so much, get you nowhere, and leave you lost with unrecoverable money. Just look at Bernie Madoff. His last name is perfect because he “Made Off” with all the money.
If you can’t verify the investment through legitimate sources, then it’s probably not an investment. Don’t buy into something just because your spouses friend told you about this great deal. Talk to another (or two) investment advisors to find out what they think about it.
And NEVER invest more than you can afford to lose. If you’re thinking of investing your retirement account into someones “this is a great thing! It will get you back 40-50% returns! I’d be running in the other direction.
Be careful out there. After two years of Covid19, lost jobs and lost savings, I know that people want to get back into a good position. Just please do your due diligence and don’t get scammed.
A Little Bit of This and That 