Even the most savvy investors can sometimes fall prey to the promises of ‘instant wealth’ that some investments ‘guarantee’. It can be so tempting to try to get rich quick or to invest in something that promises huge returns with little or no risk. That’s why I’m here to remind you of a fact that you are probably already aware of – if it seems too good to be true, it probably is! The next time you’re up late watching T.V. and see an infomercial that claims to know the secrets of buying real estate with no money down, or promises huge profits by investing in options and/or futures, remember that there is no secret easy way to make money that has been discovered by a lucky few.

In reality, real estate is often an extremely risky investment, and investments like options and futures are not only highly complex, but also carry their fair share of risk. In both cases, as with many get rich quick schemes, the mistakes that are typically made by a novice investor are unfortunately one of the reasons other more seasoned pros and large corporations are making money. For example, when a novice investor purchases a property hoping to ‘flip the house’ to make a huge profit, he or she will often be unable to do so within allotted the time frame and/or budget, and therefore default on the loan or are forced to part with the property at a loss – in both cases, either the bank or the new buyer will benefit from the novice investor’s mistake. This is not to say that real estate, options or futures are scams – they are all perfectly viable investment possibilities – IF you know what you’re doing. The strategy you should follow is actually quite simple - when in doubt, delay investing until you feel very confident that you know what you’re getting into.