We’re all cognizant of the tendency for people to fall for the “get rich quick” scheme. We do our due diligence to identify schemes that could lead to big losses.
If it’s too good to be true, it probably is, we remind ourselves. And even those traders and investors who can seemingly get rich overnight, success is usually the result of brains and opportunity jelling at the right moment.
One source of these warnings about get-rich-quick schemes are the wizards who run financial advising and investment services. If an investment has a return over a double-digit percentage, they tell us to put up the red flag. And if you pull in triple-digit returns, forget about it; it’s definitely a scam. Put your money in safe mutual funds, or other controlled investments managed by these wizards of the market.
But are these advisers peddling another type of scam?
Financial advisers are notorious for what I like to call a “get rich never” scam. They tell investors that they should set aside any hope to get rich within a 30-year horizon. It’s great if your 22, but for investors who got in the market in their 30s or 40s, there doesn’t seem like there’s any utility to it.
Their motto seems to be under-promise and under-deliver in most cases.
How well does this get-rich-never scheme work? It’s pulled in trillions of dollars for the mutual fund industry, although that figure is now considerably less thanks to some un-wizardly moves on their part.
Bernie Madoff, by the way, didn’t offer a get-rich-quick scam; he had a get-rich-later scam that produced returns of precisely 8 percent almost every year.
I recommend you keep money in investments for the long haul, but a certain percentage should be placed in a trading account that focuses on wealth-generation.This should be an account that YOU keep watch over. Let the wizards handle the long-term management through your 401 K and IRA plans.
Will you become a millionaire over night? Probably not. But, using the correct tools, like Automated Trading systems, you can find investments that create returns that have high returns and lower risks.
If these returns compound consistently, it becomes a get-rich-sooner system.
And that beats the get-rich-never plan, any day.
This is the last post in a series about lies financial wizards want investors to believe. For more information, you might want to read the third post in this series. It’s called Lie: You Can Arrive At Financial Freedome Using A Rear View Mirror.
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