Sunday 28 Aug 2016

4 Tips to Avoid Ponzi Schemes

The Ponzi schemes take its roots since 1920’ are widespread now as well. Though the SEC shuts down a new Ponzi scheme almost every week, people keep on trusting their money to anybody else. Read this article for not being deceived. Do not fall prey to scammers even if you really need some fast money. It is a lot better to visit same day online loans and get money for sure instead of hoping to profit thanks to someone's empty promises. You should always know how to protect yourself!

1. Prospectus Is Important

Whenever you would like to invest money, always ask for the prospectus. It is a legal document about your potential investment. The prospectus is usually filed by SEC. Any legal investing company will give you out the prospectus. If you have a deal with Ponzi scheme, then you will not get any document, as the investment is a fraud in this case.

2. Compare the Returns

While a usual investing company suggests you the reasonable returns, not very high, Ponzi schemes often promise you the double returns. If you see that the returns are to be unbelievable huge, do not get in the trap, as it may be a Ponzi scheme. Look for the market prices and returns, as the investor is not able to beat the market price. Consistent returns are also a warning for you not to agree beforehand. Search for the information on the company and you will see whether it is eligible or not.

3. Your Portfolio Must Be Held at a Third Party

The investor company may hide all the plans, schemes, use the fake statements. If your portfolio is held at a third party custodian, then the investor will send you the regular statements directly. If the custodian and the investor’s opinions completely differ, then you should overview any of them immediately. One of the most well-known third-party custodians: TD Ameritrade, Fidelity, Scott Trade, Schwab.

A lot of people still do not trust the investing practice because of the frauds such as Ponzi scheme. Tyr to trust your intuition when something goes wrong. There are a lot of investing advisors now and there is no need to worry if you have got one who will help you choose the best investing company for yourself.

Generally, investing may be very profitable especially when you need to save some money and to get some extra, but this will happen only in some period of time, regarding your contract with the investing company. If you are in need right now and you require money straight away, there are several other options, the most convenient and fastest of which is the same day loans. These loans are designed for people who have a lack of money and would like to receive some extra cash or just money on their personal account right away. The interest rate is not very high comparing with the banks and you just need to choose the most appropriate variant for yourself among the big variety of suggested loan companies.

If you get aware of some new investing company that promotes big returns, do not hook up at once. It may be a fraud. Try to check every possible detail before investing your hard earned money.

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