20 people you should not invest with!


When it comes to investing, fraudsters and tricksters can be found everywhere. It is not uncommon to hear stories of how clients were legally robbed by their financial advisors. It usually involves a scheme that the client invests in for high returns but in the end the scheme always ‘seems to collapse’ and the clients lose everything; whilst the financial advisor walks away with a bunch of cash and no repercussions. With investing, the golden rule is to never invest in something that seems too good to be true. But if you want more than that, here are 20 red flags of the people you should not invest with:

    • People that make you feel like they’re doing you a favour by letting you invest your money with them.
    • People that cannot explain their strategy in a simple, technical way.
    • People that tell you what you want to hear instead of what you need to hear.
    • People  that are more interested in selling you a product than creating a beneficial long-lasting client relationship (salespeople!).
    • People that are more worried about gathering future clients than taking care of their current ones.
    • People promising you ‘crazy’ returns without the risk!
    • People that try to dazzle you with 200 page beautifully crafted pitch books.




    • People that blame external forces for their failures.
    • People that are unable to effectively and clearly communicate their process.
    • People that are consumed by ideological or political beliefs when making investment decisions.
    • People that would rather take you golfing than help you solve your problems.
    • People that make guarantees about the markets in the future.
    • People that try to invest in the markets as they “should be” instead of how they actually are.
    • People that take the markets personally and let their emotions drive their decisions.
    • People that are more worried about what others are doing instead of focusing on their own process and goals.
    • People that are unwilling or unable to admit their limitations.
    • People that are more worried about sounding intelligent than actually making money.
    • People that obsess over the market’s short-term movements. Quarterly performance anyone?!
    • People that are unwilling to say “I don’t know.”
    • People that don’t learn from their mistakes.
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