Submitted by admin on
The honest answer to this question is maybe. It all depends on the seminar you are attending. Is this an educational seminar, or a seminar where a product is being pitched and sold? Investment seminars, or free lunches, are a common and relatively easy way for salespeople to promote and sell investments. However, the investments are not always right for those who attend the seminars.
Some of the major red flags surrounding investment seminars come from the tactics used to sell investments, which tend to involve high-pressure and over-exaggeration. Some seminars deliver outright lies regarding the potential returns investors can expect and people and companies have been sanctioned or disciplined for making false statements and promises.
If you do attend an investment seminar always remember the old adage, “if it sounds too good to be true, it probably is.” Also, remember that the people delivering the seminar may be trying to sell certain products or services. They will push these products and service on you even if they aren’t right for you and your financial goals. You should never be rushed into making an investment decision and you should always have all the information you need to make any decision when it comes to your money. Don’t be afraid to ask questions and if they don’t give you the answers you’re looking for, or don’t give any answers at all, don’t be afraid to walk away.
Here are some tips on how you should react to any investment advice, including what you might receive at an investment seminar, or a free lunch:
1. Ask questions - If you don’t understand something, ask questions. If you want more information on a topic, ask questions. Never be made to feel that wanting to know more or understand more is wrong.
2. Ask for credentials. – What makes this person an “expert” in investing? What education and background do they have? Make sure they’re registered to be giving investment advice and selling the products or services being offered.
3. Ask for references – Anyone looking to sell you investments or provide investment advice should also be willing to provide you references from other clients.
4. Be skeptical – Many investment seminars will generate excitement about their investments with flashy presentations, influential public speakers, over-the-top anecdotes and too good to be true promises. They either minimize or avoid talking about risks and fees. Be skeptical about what you are hearing. Play devil’s advocate. Get all the information you need to make an informed decision and to be comfortable with your choice.
5. Get a second opinion – If you’re considering purchasing an investment presented to you at an investment seminar get a second opinion from an independent, licensed and neutral party.
6. Don’t be rushed into anything! – Never allow a presenter or salesperson at a seminar to rush you into any investment decision. Tactics like “limited time offer,” “get in now while the market is hot,” and “don’t miss out on the early profits,” are buzz phrases used to make potential investors fear missing out on amazing, but unconfirmed profits. Basically, they’re targeting you with Investor FOMO – fear of missing out. Don’t let investor FOMO cause you to make an investment you’re not 100 per cent comfortable with.