• Planet Antares Scam Solutions | Investment Scams

    Date: 2010.08.25 | Category: Planet Antares Scam Alerts | Tags: ,,,,,,

    The news about the economy is mixed, leaving investors both large and small wondering whether the US economy is headed for a double-dip recession.  Economic uncertainty drives investors to look for alternatives that may prevent their long-term savings from being drained by the misfortunes of a souring economy but that approach can sometimes leave investors vulnerable to investment scams.

    Every investment has risk, but investment scams go beyond that. Investment scams can involve everything from commodities to technology startups to risky funds and the biggest losers are often those with the most to invest.   Here are a few tips to help you avoid becoming the victim of an investment scam.

    Understand how the investment will be valued and held, and how you can reclaim your cash.  Check with the securities division of your state government to see if any complaints have been lodged against the firm you’re considering an investment with, and make sure all brokers or traders are licensed in your state.

    Understand the investment itself.  Many small investors have an incomplete picture of how an investment works and the risks it involves.  Only by balancing the investment against its risk of loss can an investor get a true picture of the wisdom of a particular investment.

    Do additional research on market trends and forecasts to see how your investment may potentially fare under the most likely circumstances.

    Don’t be swayed by friends who have invested in a particular plan.  Don’t assume that your acquaintances have thoroughly vetted an investment, or even that their financial situations are similar to yours.  They may be in a better position to lose their investment dollars than you are, or they may not mind taking larger risks.

    Consult with an independent financial advisor if the reward potential of a particular investment clouds your ability to see its accompanying risks.

    Don’t place all of your money in a single investment. The best investment portfolios are balanced to cover a wide range of possibilities, and different elements of your portfolio perform better or worse, depending upon the circumstances.

    Avoid investments that “guarantee” returns, show only gains over their history or bill themselves as “can’t miss” investment strategies. All investments involve some kind of risk. If a broker won’t be honest about describing your risk accurately, look for other investments.