Get Rich Quick?

We all have seen the headlines: “The easy way to make millions”, or “the quick way to instant wealth”, we are constantly being bombarded with advertisements promising us the world without having to do any work.

Instant Gratification

In today’s western society we are constantly having the notion of instant gratification being reinforced. If it’s our increasing dependence on fast food, to the notion of getting rich quick, we have lost the virtue of patience. Last week I met with someone, who wanted to open an account, and he said that he wanted to only invest, if I could “guarantee” that he will double his money in 3 years. I told him that no responsible professional advisor would ever make such a guarantee, and he laughed and said that he has already spoken to three other advisors, and they said, ” no problem. We can double your money in three years.”

Buyer Beware

The local media is filled with advertisements pitching various real estate opportunities both in Israel and abroad. They often make very seductive claims, of minimal investment and returns over 200% for 3 years, or a “guarantee” of such and such a return. How does one know if this is legitimate or not. Rule number one: If it sounds too good to be true, it probably is. Rule number two: read the fine print. Often times the small print on the bottom of the advertisement, makes it very clear that the “Guarantee” comes with many strings attached, and in fact there is a reasonable chance that you can indeed lose money. Rule number three; Ask detailed questions. Don’t let the salesman off the hook. Ask pointed and specific questions to get a better understanding of the investment. Ask about the risks. If the answer is,” there are no risks,” or lip service is paid to explaining the risks, there is a good chance that you are not getting the full information about the investment, and you should think twice about investing.

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