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Losing Your Life Savings In Australian Capital Reserve Is Ridiculous And Preventable
Media Release
8th June 2007
In this day and age no-one should be losing their life savings in an investment. Yet this massive loss of life savings in a marginal investment like Australian Capital Reserve still occurs with alarming regularity. And it is not the fault of the regulator, ASIC, or the sales force.
These tragedies are set to continue irrespective of any future legislation or how much money ASIC are given for surveillance because regulation is not the problem.
“While common sense continues to be uncommon people will continue to lose large amounts of money in marginal investments” says West Perth based Certified Financial Planner, Matt Hern of FINDRE.
Since the 2001 implementation of Financial Services Reform retail investors have been provided with more than adequate information to avoid investing their entire life savings in marginal products. Product Disclosure Statements (PDS) contain information explaining the investment and the risks.
“People don’t know they could lose all of their money because they choose not to read the warning signs. No amount of effort to add more warnings or write them in plain English will change the outcome while people choose not to read them,” said Mr Hern.
“Most people would have heard the old adage to not put all your eggs in one basket. So even if they don’t read the PDS no-one should lose their entire life savings when one investment fails. Common sense appears to be blurred by the flashing lights of high returns.”
Tragedies like losing your entire life savings can easily be prevented by following these three tips:
- Spread your life savings across multiple investment types and products
- Dig deeper, or even run away every time you read the word “guarantee” in relation to an investment
- Get a third opinion from a licensed, Certified Financial Planner.
“When thinking about investing large sums into marginal investments a second opinion is not sufficient. Only when a third, expert opinion agrees the product is appropriate should investing be considered,” said Mr Hern.
ENDS
For further information Contact Us
Read the full article published on 6th June 2007 in our free newsletter "Own Your Financial Future".
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Matt Hern trades as FINDRE
(Empowered Wealth Pty Ltd t/as)
ABN: 21 592 525 720
Phone: 08 9467 7320, Fax: 08 9463 7848
PO Box 259, Bull Creek, Perth, Western Australia 6149, Australia
Website: www.MattHern.com.au
Blog: www.Money-Guide.com.au
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