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Sound Advice: October 5, 2022

Unusual opportunities? Really?

Even if you spend no more than a few minutes listening to media such as CNBC, MSNBC, Fox News, and the like, you will be bombarded with commercials, many offering opportunities for whom the only beneficiary is the sponsor of the commercial.  These include “. . . investment techniques that could get you unusually high returns”, “. . . cash for your life insurance policies”, “substantial cash compensation” if you used Johnson’s baby powder, served at Camp LeJeune or somehow had a distant relationship with another issue for which some wrong had led to a legal recovery.

When you hear these, you have to wonder why commercials are needed to promote these apparent paths to “riches.”  The answer, of course, is that in most cases the chances of a result that could be profitable for you is probably on a par with winning at Lotto.  Ain’t gonna happen.

Let’s start with investment techniques.  With investing, the likelihood of success increases as the time span for the investment increases.  Offers that suggest substantial returns in short periods are utter and complete nonsense.  Indeed, if there were any veracity to these kinds of claims, the folks who came up with them would be able to sit back and watch their money grow.  That’s not happening, but more than a few people are gullible enough to believe in these things.  That’s how the sponsors make their money.  Not through the use of their schemes.

Years ago, when I was at Value Line, the well-respected investment advisory publication, we were occasionally approached by individuals and companies that had developed investment techniques “with great returns”.  When we asked for data to show those “great returns”, they never were able to do so.

Even so, on occasion, there have been subtle changes in real investment approaches that have been of value.  But in all cases, as more people have made these changes, the benefits from same have diminished.

If you want to sell your life insurance policy, known as a viatical settlement, that may work if you are single, but a couple who considers same is looking for trouble if they both have and want to sell their policies.  No need to explain this.

Signing up to participate in a class action lawsuit may be of interest if you have nothing else to do.  But don’t hold your breath waiting for a check in the mailbox.

I hope you get the message and tune out.

   

N. Russell Wayne, CFPÒ


www.soundasset.com

 

Any questions?  Please contact me at nrwayne@soundasset.com

 

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