Keep Your Money Safe

Thanks for sharing this!

Swindle, scam, steal. Deceive, defraud, dupe. No matter the term used to describe a con, the results are the same: a thief has tricked someone and taken their money. You only have to read the newspapers to know how often it happens.

So how can you protect your hard-earned cash? Asking questions is a good start. Here are three to think about before you turn your money over to anyone.

Is it too good to be true? When banks, mutual funds and the US Treasury offer interest rates of less than two percent, be wary of investments that promise returns of 15% or more. Scams that fall into this category include payphone leasing, Ponzi schemes and prime bank schemes, where victims are promised access to the investing secrets of the rich.

Is the person selling the investment licensed? Legitimate stockbrokers and investment advisors are regulated by state authorities. Watch out for information gleaned from Internet chat rooms, so-called investment seminars and “affinity group fraud”, which can happen when you trust someone merely because they belong to a group you’re affiliated with.

Do I understand the risks? How much money you can make is only one part of the equation. Equally important is knowing how much you can lose. For example, callable Certificates of Deposit can be redeemed by the bank—not you—prior to maturity. Early redemption may mean you lose part of your original investment.

Question, question, question. Ask, ask, ask. And keep your money safe, safe, safe.

You might also like these posts

Article – Preparing for Hurricane Season Image source: By Nilfanion , via Wikimedia Commons. The map shows the tracks of all tropical cyclones which formed worldwide from 1985 to 2005.The Atlantic hurricane season begins June 1. While the 2014 season is expected to be a mild one, mild doesn’t mean storm-free. Getting ready early is a good idea—and early preparati...
Article — Locked Out Image source: UK, public domain, via Wikimedia Commons What’s on your computer? Your manuscripts? Work? Photos? What would you do if you were denied access to those files—if you were locked out by rogue hackers? If you’re shaking your head because you think nothing on your computer is of value to hackers, consider th...
Article — Tax Identity Theft Awareness Week Image source: Taxes are scary enough, without adding tax identity theft to the mix. The costs—$3.6 billion a year according to an estimate by the US Treasury Inspector General for Tax Administration—are scary, too. Unfortunately, both tax ID theft and the costs are on the rise. The US Federal Trade Commission...
Article — Your 2013 Federal Income Tax Return Image source: Whether you’re a part- or full-time freelancer, receiving income means filing a tax return. Here are three things to keep in mind as you look back at your 2013 business activity. Dates: The IRS will begin accepting 2013 business returns on Monday, January 13, 2014. For individual returns, the da...

We write. Visit us in Carpenter Country, a magical place that, like our stories, is unreal but not untrue.

Posted in Articles Tagged with: ,