Bad Investments: Where You Should Avoid Putting Your Money

Failure Bad Investments

Amazingly, there are still many people out there who think the investment game is easy. That just because you studied business at college and have your money invested in something that you’re making good decisions. Unfortunately, of course, things aren’t quite that simple.

There are a lot of options out there are simply way too risky to consider to be smart investments. Of course, there’s always going to be some risk when it comes to investments. And sometimes it is the people who make what appear to be bad decisions at first who come out on top. But when it comes to these options, you’ve either got to avoid them or tread very lightly!

Cars

Cars aren’t like property. When you buy a house, you’re buying something that you’re going to use as well as an asset that will probably increase in value. The same doesn’t apply to cars. The second you start driving them, they lose value. Quickly. Some really classic cars may make the buyer a lot of profit in the future, but these are incredibly rare.

Gold

Gold is often the first thing that comes to mind when people think of smart investments. But investing in gold or any precious metal isn’t exactly what it used to be. While it’s known to increase in value over time, the increase is so slow and so small that it’s probably not worth your time. Gold is used more as a “safe haven” for cash than it is a way of increasing it.

Bank accounts

People overestimate the power of interest. When you keep money in a savings account, you’re going to get a small percentage of that amount every year. For some, this leads to the thinking that having enough money in your bank will make you a nice profit. But even someone with a million dollars stashed away won’t see a return that would offset the increasing cost of living.

Microcap stocks

Like any type of stock, microcap stocks are volatile. But microcaps are especially known for their volatility amongst other stock options. In order to make a tidy profit the micro cap company you’re invested in have to hit it really big. And due to low regulation, this option is especially prone to fraud. Check out the website of Martin Chitwood to out more about protecting yourself from securities fraud.

Futures and options

Futures and options are the ultimate “gamble” investment. While there are subtle differences between the two, the major premise is much the same. Basically, you’re putting money down on the chance that the value of a given company’s stock will increase. Like any other investment, it has seen great pay-offs for people. But not many. It sounds like a bizarre and risky way of investing because it is a bizarre and risky way of investing!

Anything sold to you by a sleazeball

In general, if you’re being given a sales pitch by someone who’s really trying to put the pressure on you, then it’s best to walk away. If they seem desperate and are telling you that this investment is a “sure thing”, then chances are it’s anything but.