When it comes to investing, no words ring truer than the old adage – “If it sounds too good to be true, it probably is.” Back in March, I wrote a post on this very subject. You can read it here.
This past weekend I happened across this from the Dallas Morning News:
A well-known Frisco wealth manager is in hot water with Texas authorities after being accused of helping perpetuate a Ponzi scheme and using as much as $1.4 million in investors’ money to pay off a tax lien.
On Monday, the State Securities Board ordered Bob Guess to stop selling investments in multiple fraudulent financial dealings, according to the agency’s emergency cease and desist order.
The order said that Guess’ firm, Texas First Financial LLC, has been offering investors 9 percent annualized returns on securities that aren’t registered, and that Guess himself is an unregistered securities dealer.
Texas First Financial has widely advertised its services and investment forums on local radio stations, including ESPN Dallas 103.3 FM and WBAP News Talk 820 AM. Guess is also the host of the “Dollars & Sense” radio show.
If you’ve ever driven around Dallas listening to talk radio, I’m sure you’ve heard the advertising mentioned above. In it, a pitch for an investment with 9% returns using adjectives such as “Safe” “Predictable” and “Like a CD”. All used to imply a sense of safety and security.
In reality, as we know, the only way to earn returns astronomically greater than that which you can get at a bank is to assume some level of risk. Implying otherwise, well, that’s just deceitful.
“If it sounds too good to be true, it probably is.” This sounds like commonsense; yet oftentimes, this is one of the most ignored pieces of financial advice I see.
It is my belief, that your investments should be managed in a way that is straightforward and directly matched to the risk level and objectives outlined in your written financial plan.
DMN 8.19.19: Dave Lieber – Watchdog Column
Texas State Securities Board: Emergency Action Filed Against Dallas-Area Investment Promoter
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.