'Guaranteed 12% return' on investment

System

OldMusicGuy wrote: »

If someone has found a guaranteed 12% return, why are they not making a fortune themselves? Why do they need to waste their time trying to convince suckers to part with their money?

I'd keep the appointment just to have him sit there whilst I posed that very question to him. It would be worth it for the comedy value as you watch him start to sweat and try to worm his way out of it.

jimjames

Beenie wrote: »

We have told our friends of our misgivings (and will again after the advice here) but they are dead set on hearing this man. They are naive people who have come into a lot of money, and need some help. I will do my best.

Check who the "adviser" is. Is it an IFA that is FCA regulated? I suspect not but useful to know

Alexland

Beenie wrote: »

Our initial thoughts were 'that is too good to be true' and smelled a rat.

Just one rat? Must be a big one to create such a stinky proposition. Avoid.

David_Evans

Beenie wrote: »

Thank you for your sound advice.

Our initial thoughts were 'that is too good to be true' and smelled a rat.

We have told our friends of our misgivings (and will again after the advice here) but they are dead set on hearing this man. They are naive people who have come into a lot of money, and need some help. I will do my best.

Sounds like the potential for some financial Darwinism.

lpgm

Beenie wrote: »

They are naive people who have come into a lot of money, and need some help. I will do my best.

You could try to explain to them that because they now have 'a lot of money', there's simply no need to go after eye-catching returns that may or may not be real.

David_Evans

Tarambor wrote: »

I'd keep the appointment just to have him sit there whilst I posed that very question to him. It would be worth it for the comedy value as you watch him start to sweat and try to worm his way out of it.

If I was promoting this investment, my answer would be something along the lines of:

''Well we need money to come into the project / company, before it can earn the returns. Naturally I've invested heavily myself - but I can't reinvest more until more returns are generated''.

To be fair - this is generally true of many businesses.

David_Evans

How did ''your friends'' come across this investment opportunity?

Aretnap

Search the forums for "Store First" "Park First" and "Dream Lodge" for some apparently (to the unwary) reputable investment schemes based on storage units, parking spaces and holiday cabins, which offered similar "guaranteed" returns and which ended very badly indeed for the .suckers investors involved. Hotel rooms and student flats are another area which is rotten with chancers offering schemes with the same business model, and which will have the same end result. Your friends should avoid it like the plague.

Sea_Shell

All you can do is warn them. If they choose to ignore your advice, there's not much more you can do. They are adults, after all, even if financially naive ones.

Unless, of course, they agree to have you at meetings acting as the voice of reason.

Marine_life

I would be very very wary.

there are some *decent* options out there for those who have a high risk tolerance. E.g. I have some money with these people:

https://www.mintos.com/en/

So far I'm earning 11.5% with (also, so far) no loss of capital.