Even in this technologically advanced world where everyone has easy access to the latest news and information, many investors still find themselves investing in Ponzi schemes. Ponzi schemes are usually made attractive for new investors by providing consistent and above market returns in the long run.
While the owners of a Ponzi scheme will always tell you that they are re-investing the money to pay you the higher returns, they never actually reinvest, but actually pay The earlier investors from the money coming from the new investors joining the scheme.
Here are some ways to keep yourself safe from Ponzi schemes. Also, you should check NRGY reviews for more details.
Think With Common Sense Before Investing
If you are a new investor, you should always take every step carefully, and showed you think with common sense rather than with your emotions. No matter how much money you might have to invest, there are almost no real investments which can offer you a risk-free, and consistent stream of high returns in the long run. While stocks and equity funds can provide you with decent returns, they fluctuate as the market changes, and nothing is guaranteed.
Choose Your Manager Carefully
If you have a large investment portfolio, you should hire an investment manager to keep your investments safe. When hiring an investment manager, you should only focus on his skills, and the results he has been generating for his clients in the past. Keep in mind that most Ponzi schemes are advertised by people who are really good at talking and convincing people to invest with them.
Don’t Be Impatient
It is completely understandable that you want to build a huge investment portfolio to become financially independent in the long run. However, keep in mind that you will have to wait for years to achieve that type of result. So, never dream of becoming a millionaire overnight, and be patient.