Stay away from investment seminars that promise:
- risk-free investments
- to make you a millionaire in a few years
- above average returns at little or no risk
- government-approved investments
Look at the strategies they suggest to achieve the great results they promise.
Shares have return around 7% a year, and property about 6% a year, over the last decade. If you’re offered returns of 1-2% more (or a lot higher) than these returns:
- get a second opinion
- ask for a detailed written explanation
Property deals offered at these seminars might include ‘rent guarantees’ or ‘discounts’ for buying off the plan. Be careful as they can involve hidden fees and commissions. The properties can also be over-valued.
Some seminars promote schemes that involve you lending money with little or no security. Another twist is to get you to invest in offshore schemes where you lose the protection of Australian laws. You may never see your money again.
Investment seminars often don’t deliver any concrete investment opportunities.
The first event may be free. But expect pressure to buy reports or books and ‘sign up’ for more expensive seminars or educational courses.
The only person making any money will be the seminar organiser.