On Money Talk we discuss finance and money issues. Please send your comments or views I really need your feedback. I will be repeating the show on investment scams hitting retired investors. And I’m also pleased to say that many retried investors have been saved from investing there life savings by that show.
Carte Blanche last night told the story about Johan Van Der Merwe, a veteran SA actor who invested R1m his life savings into a investments scheme operated by Servaas Louwrens who had promised him returns of 12.5%. Little did he know that this mistake would cost him his life savings and there is no chance of getting it back. Servaas operated many investment scam companies from small loan companies to forex dealing and is still operating out there even though he is wanted by the SAP.
All scams have the same features:
1. They all offer higher than the normal returns available. They make it sound incredibly plausible how come they can offer such good returns.
2. They are sold by good sales people, who assure their clients they are making a good investment decision. These sales people are only driven by high commissions in the region of 10% and have no regard to the welfare of their victims.
3. They target retired investors who are easy targets who normally invest their intire life savings into them.
4. They all seem to have all the right credentials and referrals. These days they even have FSB licenses and to my horror are sold by licensed advisors.
5. They are normally sold by selling unlisted shares by means of a prospectus in an investment scheme or property syndication.
So, if you don’t want to become a victim how can you tell what is safe to invest in?
3 golden rules:
1. If the investment is not listed in the newspaper don’t buy it
2. If it is buying unlisted shares don’t buy in
3. If you are unsure get a 2nd opinion from a reputable advisor.
