Editorial By Natalie Pace
In today’s world, it’s easy to get caught up in trying to earn more to make ends meet. However, there are certain moments in time when protecting what you have, and learning how to stop making everyone else rich at your own expense, becomes the most important thing you can do for your future.
Now is the time to make sure the roof and foundation of your money house are secure enough to withstand the financial storms on the horizon. As John F. Kennedy Jr. said, “The time to repair the roof is when the sun is shining.”
Below are risky investments, red flags you need to be aware of, and one easy way to know whether or not you can trust someone who is offering you investing tips.
Six risky investments that are being sold as safe.
- Particularly long-term bonds.
- High-Dividend Stocks.
- Private Placement Real Estate Investment Trusts (REITs).
- Money Market Funds.
Twelve red flags that you’re dealing with a scam artist or a salesman.
- Pushy salesman or person.
- Email or URL looks fake.
- Misspelled words.
- Promises of fast, easy, often free money.
- Comes in as a phone call, email or shared on a friend’s timeline.
- Guarantees that you can’t lose.
- Require you giving personal information.
- Require you giving money first.
- The website doesn’t have a physical business address.
- 800 phone number and fill-in-the-blank contact form, instead of a staff member and real email address to contact.
- The website is filled with marketing lingo, but you can’t find who owns the company, who runs it, or access the bios and CVs of the executives and board members.
- The company is based out of a well-known tax haven/secrecy shelter, such as The Bahamas, Panama, Cyprus, the British Virgin Islands, and The Cayman Islands.
One easy way to know whom to trust.
Whom should you trust with your money? Trust results. Click to read my blog on that.
And here is a little more information on each point.
Learn six risky investments that are being sold as safe.
In 2018 and beyond, the big issue is one of over-leverage and over-valuation. Low-interest rates create bubbles, which is why we’ve seen real estate, stocks, and bonds soar to the highest prices ever seen. As interest rates rise, all of these assets are under pressure. What’s more troublesome is that many are where you are placing your safe money, where you don’t want to worry about losing money.
- Bonds. Particularly long-term bonds.
Bonds lose value as interest rates rise. Many bond funds can have 20% or more in junk bonds. Over 50% of investment grade corporations are at the lowest rung, just one step above junk bond status. In the worst-case scenario, bonds can become illiquid or the corporation will declare bankruptcy.
- High-Dividend Stocks.
Do you have a budgeting, investing or economic questions for Natalie Pace? Simply email info@NataliePace.com.
Natalie Wynne Pace is the author of the Amazon bestsellers The Gratitude Game, The ABCs of Money and Put Your Money Where Your Heart Is (aka You Vs. Wall Street). She has been ranked as a No. 1 stock picker, above over 835 A-list pundits, by an independent tracking agency (TipsTraders). The ABCs of Money remained at or near the #1 Investing Basics e-book on Amazon for over 3 years (in its vertical). Natalie Pace’s great, great grandfathers James Pace and Lorenzo Wright were some of the original pioneers of Graham County. Call 310-430-2397 to learn more about Natalie Pace’s books, private, prosperity coaching, and 3-day Financial Empowerment Retreats.
Please note: Natalie Pace does not act or operate like a broker. She reports on financial news and is one of the most trusted sources of financial literacy, education and forensic analysis in the world. Natalie Pace educates and informs individual investors to give investors a competitive edge in their personal decision-making. Any publicly traded companies or funds mentioned by Natalie Pace are not intended to be buy or sell recommendations.
ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a diversified strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The “trading” portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge, and patience.
Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.