“Thank you kindly for your expedient response to my Email of 2-17-01. You have saved me a bundle. It’s a person like you and honesty that makes me keep on subscribing to your newsletters. Thanks Again, Vince”
I thank Vince. It’s so gratifying to share experiences that can really help! It’s hard enough making money in legitimate investments. That’s why con artists make me mad. They waste so much time and suck in so many unwary investors. Over the past thirty years they have created a bad taste in my mouth, so perhaps I am entitled to rant a little and rave (for your good). In fact the hero of my novel, the 65th Octave (available at https://www.garyascott.com/65thoctave/ is an investigator who uncovers scams. Read this book and you’ll see why so many investors get skinned.
This message is mainly positive, about three of the best investments in the world, but first let me hasten to add a little more about scams because I’m still getting some readers trying to convince me that these cons are legitimate deals. For example here is what one reader just wrote.
“Gary, These so called investment clubs which are prolific on the internet 99% of them are either ponzies or pyramid games. However there seems to be one or two that are returning double digit returns to investors (or club members) a business associate of mine has been involved in these so called clubs for a number of years and has done very well out of them.I myself have just recently joined a few of them really out of curiosity. The ones I have joined are involved in a so called secret business namely bank debenture trades.I myself don’t believe they exist to the general public,but I guess nothing ventured nothing gained. I look forward to reading your new book 65th Octave.”
My reply to this reader applies to all:
“Don’t believe this! All of these deals are rip offs. Please understand that these scams often pay out for a year or even two before they shut down. Here is a long true sad story that exhibits the pain and suffering you can suffer and spread by investing in these clubs and sucking other innocents into these rip offs by bragging about huge profits. This actually happened to me in the early 1990s.
A client who had made a fortune in the oil business was in his seventies and had retired. He invested into a Ponzi scheme operated in Texas by a woman who claimed that because of here political connections, gender and heritage she could qualify for all types of government contracts. The deal was she got the contracts and financed them turning them over to regular contractors to complete the job. He was getting ten to 12 % per month. He told one of the speakers at a seminar I was conducting. That speaker told several of the delegates (who were his friends). Some of the delegates asked me about the deal. I was so outraged that the speaker had mentioned such a obvious scam that I discussed it with the entire delegation and showed them five reasons why I knew it was a scam. Yet I later learned that some of the delegates invested in the deal anyway. The presentation was so convincing, the returns looked so good. In fact one delegate who was an incredibly successful investor went with his attorney and accountant to Texas to do their due diligence and invested one million dollars one week before the FBI shut this Ponzi scheme down. The investor (at the end of the scam) lost his entire million bucks!
But the worst is yet to come because this businessman could afford to lose a million bucks. The original retired oilman who introduced the scam in the first place lost his entire retirement savings, plus his brother and most of his friends were wiped out, their lives ruined. The speaker who spread the tale of greed further lost six figures as well. That was bad enough, but he too could afford the loss. That speaker’s mother whose entire $475,000 of savings was lost could not afford the loss either.
So when greed gets the best of you, think twice before you invest. Think three times before you brag about the huge profits you are making. You may be at the end of the scam and suck a friend or loved one into financial ruin.
Ask yourself why you (without any background in investing) can make 10% or 20% a month guaranteed when experienced investment managers like myself or eClub advisor Steve Rosberg (Steve is conducting an anti scam section at our forum) who have managed millions and hundreds of millions can only find ways to safely make 6% or 7% guaranteed in today’s economic environment? How can this club outperform some of the best investors in the world (with far better records than Steve or I have) who never even dream of making 240% a year regularly?
Any investment manager who can regularly make 20% per annum year in year out will be paid millions of dollars a year by hundreds of fund management companies who would beg to have him or her. Get Real!
Investors lose money for one of two reasons. Their greed or fear outstrips their common sense. These scams play on greed. Con artists irritate me to such a degree that the hero in my novel the 65th Octave (go to https://www.garyascott.com/65thoctave/ to learn how to get a free course by ordering and reading this book or go to the 65th Octave forum at https://www.garyascott.com/forum/) is a con investigator who works for major banks.
Greed and fear and also has caused some readers to be unhappy hearing the truth about the W9 laws either. As one reader wrote:
“Are you and all the bankers and other offshore information and service providers hell-bent on committing business suicide?
Let me ask you a question. If there is no longer any advantage in going offshore, why would anyone go offshore? Why would people want your information and others’ services? If people don’t go offshore, where is your business, the offshore banks’ business, and even the offshore jurisdictions’ business going to go? Down the crapper, that’s where.
I tried, starting mid last year to generate some interest in an organization to fight this. Response has been negligible and support has been f**ing ZILCH.
Of course, you don’t have to worry — you’ve made your stash and can now afford to chase butterflies. But a lot of us don’t yet have that luxury.”
Once again my reply is something I want to share with all readers. Dear friend, I appreciate your ire, but to focus it on me accomplishes nothing. Neither I nor the many banks that are losing their privacy like what has happened.
Would you prefer that I write to you that there are advantages in places where there are not? Or would you prefer that I share what I believe is true and correct? Killing the messenger never accomplishes much except perhaps vents a little frustration that all of us feel.
I started spreading my focus away from just international advice some years ago, but not just because of the loss of privacy and tax benefits that used to be available that no longer are. I shifted to Inspired Investing (go to https://www.garyascott.com/inspired/ and https://www.garyascott.com/inspired/ because I learned from dealing with investors and business people over 30 years that what is outside in the economy, the world etc. is just a tiny part of wealth. Most wealth lies within the individual, hence my focus on inspired investing.
Though many international tax and privacy benefits have eroded, there are still numerous overseas asset protection benefits. But the main benefit to investing and doing business globally has always been the larger field of opportunity. My wealth has not accumulated a bit because of privacy or tax protection abroad. All of my assets have been built from after-tax dollars gained by spotting business and investment opportunity abroad.
In fact the reason I have been attacking these myths, scams and privacy losses is because too many people keep looking at the wrong slant of international opportunity. They spend so much time trying to protect assets they don’t have or looking for ways to make a fortune in one fell swoop that they never get around to really making any money. Focus your attention on making money realistically, not on how to get rich quick or avoid all tax. Being international lets us see more opportunities and let’s us spot distortions between one system and the other once in awhile, but is no panacea.
Now here are three of the best investments we will see in the years ahead.
Water, wood and air.
More about this next message. Until then good global investing!