October 22, 2014
When someone guarantees you a 10% return on an investment, what should you do? Why?
When someone guarantees you a 10% return on an investment, what should you do? Why?
Run! No one can guarantee a 10% return! They can’t see the future.
RUN AWAY. That person is either going to try and scam you or has no idea what he is really doing. No one can guarantee a return that high and be repeatable. Some insurance companies can guarantee and return but it is not a very good one, its going to be closer to 3% with many high fees. You can make 10% a year on average with a well put together portfolio at vangaurd but there is no guarantee that will happen, the stocks will still flux and may be down some year. Just because you have paper loses does not justify you getting out of the market. Market risk is not a bad thing and is not as wild in the long run.
Well said you two! Let’s review.
NO ONE can guarantee a 10% return. If they do, RUN AWAY. They are either a crook or delusional or some combination of the two. Double digit returns come with taking risk with your money and that means no guarantee of the return. The folks connected with Bernie Madoff could have used this advice. You have been warned!