The Securities Commissioner for the State of Texas provides 10 tips to help consumers prevent investment fraud and avoid becoming victims of this all-to-common crime. I found the advice is a good reminder to all of us on common sense investing. Continue reading for the first of three posts on wise investing.
Would-be investors should thoroughly investigate a possible investment and the salesperson and/or company offering the investment before giving them any money. The Internet or your local government has tools and resources to ensure that your investment company is legitimate.
Be aware of a salesperson that creates a false sense of urgency and uses high-pressure tactics. “Say ‘NO’ to any person who presses you to make an immediate investment decision.” A pushy salesperson that does not want to give you time to research and think about your decision should be a warning sign to all investors.
Finally, remember that smooth talking, courteous, good mannered con artists have taken advantage of many people. If you are uncomfortable, or feel uneasy about an investment, do not let the good manners and slick language of a salesperson influence you into making a poor decision.
There are plenty of great investments available to the wise and deliberate investor.