As a Money Coach, I am always hearing suggestions on what to do with your money. Most come from salesmen who want to sell you whatever makes them the most money. Not often do I hear what never to do with your money. So I came up with a list, one "never" for each year I've been a Money Coach in Colorado Springs:
Never invest in
- Anything you don't understand. - While this makes eminent sense, I hear time and time again, "I never really did understand it." Keep asking until you do understand everything about a potential investment. If any part of it makes no sense, don't buy it.
- Anything that has a sales charge, either up front or when you sell it. - The sales charge goes to the salesman. If your financial goal is to enrich the salesman, then by all means, pay it. But if you are focused on your own financial future, know well that you can buy a similar, probably better, product without this sales charge.
- Anything that has a "surrender fee." - This protects the salesman's commission once you figure out he sold you something inappropriate. Be assured that you can buy that product elsewhere without the penalty.
- Something you must "sign here and now." - Tried and true sales tactic to get you to do something without thinking it through. Take a time out and send the salesman away. Investigate before you invest.
- Anything that sounds too good to be true. - Because it most likely is not true.
- Anything offered by someone who makes a commission on a "recommendation." - The salesman is working on his own retirement, not yours. Yes, pay someone to help you invest, but insist he not be biased because he is selling the stuff he recommends.
If you have some financial "nevers," I would like to here about them.
MoneyCoachBill@yahoo.com.
I sell no financial products. I sit on your side of the table. I charge by the project.
I make no money on your investments.
You make money on your investments.
That is the way it should be.