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