Buy (insert product name). Invest, forget, and watch the money role in. All your money worries are over, quick and easy. If you hear this, beware, it is most likely a sales pitch not investment advice.
The salesperson’s job is to sell you their particular investment product. They lead you down a path, which has only one end option, their product. They do this by running through a few different types of investments. They point out downsides in all except their own. They feed your existing fears or beliefs. If they sell investment property they'll tell you...
- Shares go down like in the GFC. You could lose the lot. Remember Storm Financial!
- Property never goes down, it’s solid and safe.
It’s easy to be caught up in the emotion of the sales pitch.
However, before you make a decision, step back and seek unbiased investment advice.
Investment Advice vs. Sales Pitch
Investment advice and the sale of products has become a blurred subject over the past 10 years. It’s easy to be confused. Here is a simple way to make the distinction.
1. Investment advice is about strategy, structure, taxation, fees and goals.
2. Sales pitch is about a product.
Destination First, Investment Options Second
When you travel, you first need to decide on a destination. Then you need a strategy to get you from where you are to where you want to be. The same rule applies to investing.
Once you have a financial destination (your goal) only then do you look at investment options. Make sure you explore and discuss ALL the different types of investment options available. Once educated, you can then make an informed decision on which investment options best suit your needs and goal.
Note: The choice of investment is the last thing, which you decide, not the first. If the choice of investment is the first thing spoken about, it is a sales pitch, not investment advice
All Investment Options Carry Some Form of Risk
Risk is a part of investing. The best investors know this all too well. Shares have risk. Property has risk. Even cash has risk.
The only way to reduce risk is to make sure you fully understand each investment option.
Growing Wealth Takes Work
If you speak to those who have self-made wealth, you will find a consistent message. Hard work is what got them the wealth they now have.
Growing wealth takes time, effort and commitment. It is not a one off event; it is a lifetime pursuit, which has ups and downs.
For most of us, there is no smoking gun, big idea, lucky break, or one investment that will makes us billions. It is simply never going to happen.
To grow your wealth you need to work hard, save, and invest wisely.
To invest wisely you need unbiased investment education and advice.
It’s not sexy.
It’s not what you want to hear.
But it’s the truth.