Unfortunately, some folks make really poor financial investment decisions.
And there is always someone on the other side of the transaction willing to help them part with their money.
Actually, there are some good arguments for investing in Florida swampland.
One the other hand, if someone offers to let you buy in on the ground floor of some Turkish bonds ... run!
Why, you ask?
Because they do not exist.
You would be just as well investing in a Peruvian unicorn ranch.
Some folks have purchased Turkish bonds.
A lot of them.
Like 120 people buying $28 million worth of the worthless bonds.
This chap was not even a financial advisor. He was a mortgage salesman!
The full story is recounted in a recent article in The Naperville Sun titled “Naperville man gets prison for role in $28 million investment scam.”
The convicted scammer identified potential investors through seminars promoting his presentation and by offering a free meal to attendees.
After the seminars, the scammer would follow up with his "marks" and pitch what he claimed was a uniquely profitable investment opportunity in Turkish bonds.
Because it was a classic Ponzi scheme, the money from new investors was used to pay established investors.
By the way, beware of "professional-sounding titles," too.
With no prior experience in estate planning or handling investments for clients, the scammer held himself out as an experienced, certified estate planner to his clients.
What your father told you is still sound advice: If something sounds too good to be true, then it probably is.
Before getting fleeced, run any too-good-to-be-true "investment" opportunities past your estate planning attorney and resist the urge to get something for nothing.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Naperville Sun (August 13, 2015) “Naperville man gets prison for role in $28 million investment scam”