4 Tips on How OFWs Can Protect Themselves against Investment Scam

There are many ways on how you can grow your money. Having a savings account is safe and won’t let you down, although this will yield lower return. If you are willing to experiment, getting a time deposit could be another option. Apparently, savings and time deposit are not the only investment options you can avail of. You can turn to bonds, mutual funds, or even stocks to make your money grow double (or triple).

“Hindi ko naman naiintindihan yan,” you might say.

Sadly, many people are taking advantage of OFW’s lack of understanding when it comes to various investment options. These people will lure you to get this and that and promise higher return of investment – only to realize in the end that it is a scam and your hard-earned money is gone.

The good news is you can do something about it to avoid falling into the trap. Here’s what you can do:

Learn everything there is to learn about investment options. 

It’s not enough that you want to grow your money to live comfortably eventually. Before you invest your hard-earned money, you need to educate yourself first about the investment options out there.

In other words, read up. Use the Internet to learn more about UITF, mutual fund, bonds, and stocks among others. If time (and budget) permits, attend seminars. Read financial blogs because you will find tons of information there. Join Facebook groups that are specifically for financial purposes and don’t be shy to ask questions. The more informed you are, the lesser the chances of becoming an investment scam victim because you know what you’re getting into.

Choose a company with good reputation and proven track record. 

It’s not enough that you know what you want. You need to find the right partner to make sure that they will help you in making those financial goals happen.

Therefore, choose an investment company with proven track record. The company must not be involved in unethical and illegal practices and at the same time, its leaders must be of people with integrity. Learn more about your chosen company by reading news and reviews about them before giving them your money.

Aside from the company reputation, your preferred investment partner must also be accredited by the Securities and Exchange Commission (SEC) and/or Bangko Sentral ng Pilipinas (BSP). This way, you are sure that the company is regulated and recognized by appropriate government entities. Consequently, it gives you a form of guarantee since you know that you – and your money – is protected.

There is no such thing as high return in short period of time. 

“Double your money in 10 days” or “Get your first million in a month.”

Sounds tempting, don’t you think? Since you are serious about growing your money, you decided to give in. Unfortunately, this is a perfect example of scam – and there is a chance you might not get your money back.

Keep in mind that earning from your investment won’t happen in days. It takes time for money to grow and even years to make sure that you meet your target amount. If the offer sounds too good to be true, then think twice before investing. All good things need time to grow.

Everything will be overwhelming at first, but don’t let it stop you from learning and eventually investing. Think about your goals and plans for the family to keep you going.

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