Lesson’s Learned from Bitcoin and other “Too Good To Be True” Investments
We’ve all heard the story of the guy who invested a few bucks in some kind of investment and then watched the value of his returns rival a Space X launch into the stratosphere! These kinds of stories are the stuff of legend, and might even make you willing to take a little higher risk in hopes of gravity defying hopes. But before you get TOO excited, let’s talk about the “other side” of these stories.
Here’s the reality…
For every person who cashes in on millions, there are LOTS of others who had to lose. All that money had to come from somewhere, right?
It could be that others were the “greater fool” willing to pay more than necessary in hopes that your investment’s value would continue to rise even further. Or it could have been that they “bet” on something happening while you bet on a different result. However, if you don’t have incredibly high levels of research or knowledge backing your decisions, you are taking tremendous risk that you won't be so lucky next time. So let's call it what it is... you are legally gambling with your money. Period.
In the case of Bitcoin’s meteoric rise and subsequent pull back, there have been some big winners, but also a bunch of losers. Of course, the big winners publicize their wins (and probably use them to get you to buy their advise, programs, etc.) and the losers hide their losses so you rarely hear about them. But when you hear do the real stories behind the “losers”, you begin to see why this sort of high stakes gambling is so devastating.
For example, I recently spoke with a client who was making ridiculous returns in one of her “investments”. She’d been making nearly 1% A DAY for the past 6 months and had systematically dumped her entire 401(k) into funding this incredible money machine. She knew it wouldn’t last forever, but she just couldn’t stop - the money was just too good. She’d built up to where she was making thousands of dollars a day, and she could see how staying in “just a few more months” would set her up for life.
Then I got her text…
Last week all of her funds were frozen and she was told that her investment was undergoing an audit. She doesn’t know for sure, but it’s possible that she won’t get ANY of her money back.
This is a single parent with 2 kids starting college in the next 2 years and no way to help them pay for it. She’d been building up that money for nearly a DECADE, and it might be wiped out in one blow.
I could tell you dozens of stories like this one. Circa 2010 they were as easy to find as fallen leaves in September. We all remember those stories of divorce, bankruptcy, and even suicide. It can be ugly (ask me how I know).
I’m sharing this with you because I see the kind of mania that preceded the crushing fall of 2008 happening right now. People are overpaying for investments, real estate, crypto currency, etc. because they’ve forgotten and that markets don’t always go up, or they are afraid of being left behind.
I get it, it’s human nature. But the big banks and financial institutions have used this emotional leverage throughout history to become so profitable. They know exactly how to take advantage of the situation because they’ve done it dozens of times before. They win big while most of the “little guys” get smashed.
I don’t want that to be you…
The good news is there’s a better way to build wealth. A way that doesn’t involve the Wall Street Casinos, Bitcoin (or other crypto currencies) going up forever, or all of the other risk that comes with investments outside of your control.
Its time to be smart with your money. If you aren’t, you may end up with a financial “crash landing” in your future. Trust me, those are no fun.
If you’d like to look at alternative strategies that don’t involve taking unnecessary risk while creating solid, predictable returns on your money - we can help. Simply set up a complimentary assessment session (click here) now, and we’ll be happy to show you which lifetime income strategies might fit for you!
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