On August 17, 2012, the SEC shut down ZeekRewards, an alleged $600 million online Ponzi scheme. This is yet another reminder that investors need to do their homework before trusting someone with their life savings. Fortunately, there are a few simple steps you can take to protect yourself from investment scams.
Beware of the promise of high returns and low risk.
A lot of investment scams attract investors by promising very high returns will little or no risk. After all, everyone wants to make a ton of money but none of us enjoy investment loses! Unfortunately that’s not how things work in the real world. If you want to earn higher returns, you’re going to have to take on more risk.
Be leery of consistent returns.
All investments fluctuate in value. The higher the expected return of an investment, the more volatility you should expect. Be leery of anyone that promises large positive returns on a consistent basis regardless of the market environment.
Check for registrations.
Many Ponzi schemes involve unregistered securities, so make sure any investment you buy is registered with the SEC or state regulators. Also, if you’re getting advice from someone, make sure that he or she is registered and licensed with the appropriate agencies. Here in Texas you can contact the Texas State Securities Board to research an investment or financial advisor.
Check your statement.
You should receive a statement on a regular basis that lists each investment you have as well as the market value at the time the statement was generated. Review the statements for inaccuracies and ask about anything you don’t understand. Also, these statements should come from an independent, third-party custodian, not directly from your advisor (see next tip).
Don't give someone custody of your money.
Never
give an advisor custody of your money. Making sure your money is held
with an independent, third-party custodian will make it impossible for
your advisor to walk off with it like Bernie Madoff did. For example, we
use TD Ameritrade as our custodian. Our clients deposit money directly into
their own accounts at TD Ameritrade - not at Vannoy Advisory Group - and
TD Ameritrade provides them with regular trade confirmations,
statements, and other important account documentation.
Avoid complex or secretive strategies.
Warren Buffet’s advice is to never invest in a business you can’t understand, and that’s good advice to apply to investments as well. Swindlers often use complex or secretive strategies as a smokescreen to cover up what they’re doing.
Get a second opinion.
When in doubt, get a second opinion from someone that’s not directly related to the investment like a CPA or a fee-only financial advisor that works by the hour. You can go find a fee-only advisor through NAPFA or the Garrett Planning Network.
To learn more about our company - and find out how we are different from other financial advisors - call (210) 587-6433 or visit www.VannoyAdvisoryGroup.com.
Sunday, August 26, 2012
Monday, August 13, 2012
Money Saving Tips For Back To School Shopping
Tip 1 – Keep your school supplies list with you.
Always keep your school supplies list with you because you never know when you'll come across a bargain. Along with helping you take advantage of unexpected sales, keeping your list with you will help you avoid spending money on unnecessary supplies.
Tip 2 – Don’t shop too soon.
Waiting to shop for clothes until after school starts will give you an opportunity to take advantage of Labor Day coupons and sales. It will also give your child a chance to see what the other kids are wearing.
Tip 3 – Search online for coupons before hitting the stores.
Take a few minutes to do an internet search for coupons for the stores you’re planning to go to. You might be able to find better prices online, free shipping, or a coupon to print out and take to the store.
Tip 4 – Take advantage of tax-free shopping.
Texas allows for tax-free purchases of clothes, backpacks, and school supplies priced under $100 during the weekend of August 17-19. That will save you about $8 for every $100 you spend.
Tip 5 – Look around the house first.
Before you hit the stores, look around the house for extra pens, pencils, scissors, binders, and other supplies that are in good condition that your children can use. There's no reason to spend money on something you already have.
Tip 6 – Avoid buying lunches.
Making your child’s lunch will save a lot of money during the school year. When making lunches, you can save even more money by buying things like juices and chips in bulk and using reusable thermoses, plastic bags, and plastic containers.
Tip 7 – Don’t forget to add names.
Make sure you write your child’s name on his or her backpack, lunch bag, jacket, and other items to help you recover them if they get lost. This will save you from having to replace them.
To learn more about our company - and find out how we are different from other financial advisors - call (210) 587-6433 or visit www.VannoyAdvisoryGroup.com.
Always keep your school supplies list with you because you never know when you'll come across a bargain. Along with helping you take advantage of unexpected sales, keeping your list with you will help you avoid spending money on unnecessary supplies.
Tip 2 – Don’t shop too soon.
Waiting to shop for clothes until after school starts will give you an opportunity to take advantage of Labor Day coupons and sales. It will also give your child a chance to see what the other kids are wearing.
Tip 3 – Search online for coupons before hitting the stores.
Take a few minutes to do an internet search for coupons for the stores you’re planning to go to. You might be able to find better prices online, free shipping, or a coupon to print out and take to the store.
Tip 4 – Take advantage of tax-free shopping.
Texas allows for tax-free purchases of clothes, backpacks, and school supplies priced under $100 during the weekend of August 17-19. That will save you about $8 for every $100 you spend.
Tip 5 – Look around the house first.
Before you hit the stores, look around the house for extra pens, pencils, scissors, binders, and other supplies that are in good condition that your children can use. There's no reason to spend money on something you already have.
Tip 6 – Avoid buying lunches.
Making your child’s lunch will save a lot of money during the school year. When making lunches, you can save even more money by buying things like juices and chips in bulk and using reusable thermoses, plastic bags, and plastic containers.
Tip 7 – Don’t forget to add names.
Make sure you write your child’s name on his or her backpack, lunch bag, jacket, and other items to help you recover them if they get lost. This will save you from having to replace them.
To learn more about our company - and find out how we are different from other financial advisors - call (210) 587-6433 or visit www.VannoyAdvisoryGroup.com.
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