Discussion in 'Real Estate' started by Tropo, 30th May, 2007.
Bringing down the house - In Depth - theage.com.au
I honestly dont understand why people would risk an unsecured investment for only 9%...why not just invest in Telstra for the dividend?
Or even go with one of the well known fund managers like CFS or Platinum, surely a lot less risk of something they manage going under completely?
Well, there is a lot of pressure put on some of these "investors". I have had clients come in at tax time and they tell me they've "invested" in such and such. When I ask for the documentation, they often give me reams of paper.
I ask if they understand what they got into. A common response is that they asked for an explanation of how it all worked, they got an explanation that they didn't understand but felt embarrassed and stupid for not understanding it, so they just signed the dotted line!!!!
matt: that is crazy, I dont see why people dont just give their accountant a quick call about these things, the small amount paid for the consultation would more than make up for not losing the house/retirement/marraige. Accountants generally being conservative by nature would be the ideal person to run such things by first.
I did once hear an interesting saying about a fool and his money though...
Ah, such a common behavioural trait of us humans! We all like to appear more knowledgeable than we really are at times..... I always think it's better to chuck a Pauline Hanson and ask to "Please Explain" rather than suffer the ramifications of ignorance later on down the track.
THIS IS NOT A RECOMMENDATION
Here in my opinion is a link to an absolutely crazy 'investment'
A friend of mine is considering investing (has invested??) in this
He has come up with some really weird investments of late, like there is money burning a hole in his pocket. Each opportunity is crazier than the next, I guess, until the $500k inheritance is gone.
When we discussed this investment I mentioned about the tax deductable status and what this may mean. They indicated that they still had to investigate this side. I asked why they had not take it to their accountant the answer is 'he charges to much'.
'What the' they are going to sink $50k into this but begrudge $300 to get some accounting advice. The reason that I suggested an accountant, was the ensure that the right, tax effective, structure would be used so that at least they get something from this ridiculous 'investment'.
You really can't help people who don't want to be helped.
By the way this is a person who has observed us for the last 3 years getting substantial returns on our investments but is not interested in even exploring MF's as they are 'to risky'.
Yes, it is crazy. But to some people, their pride is more important than knowledge. Yeah... I don't get it either.
Another one....Bridgecorp crashes, $450m at risk Bridgecorp crashes, $450m at risk | News | The Australian
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