Things You'll Need:
- Greed
- Gullibility
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Step 1
Be greedy. Smart investors know that the higher the payoff, the more risk is involved. Consistent returns of eight, ten, twenty or a hundred percent just aren't possible when banks and bonds are paying interest of less than five percent. But you know better, right?
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Step 2
Decide to invest in things you still don't understand, even after they're explained to you. The more complicated something is, the more money it's guaranteed to make, right?
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Step 3
Follow the advice of people who don't know any more than you. Swindlers who run Ponzi schemes don't need to recruit victims themselves. They can invite a few people to invest and pay those people as promised. Those people are eager to tell their friends, and that's where you come in. Don't go to a professional money manager or banker or stock broker for advice on how to invest. Check with your fishing buddies, your church members, your relatives, your club members, or anybody who doesn't know anything about investing, except for this really great opportunity they just heard about.
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Step 4
Don't question the credentials of the person in charge of the scheme. Don't search for his name on the internet, or find out if investors from several years ago recommend him, or check out his licenses or reputation with professional organizations. He says you can trust him, so that's all that matters, right?
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Step 5
When it comes time to hand over your money, don't ask for anything in writing. If you are given a contract, don't bother to read it. Never ask a lawyer, banker or financial planner for a second opinion about the scheme.
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Step 6
Once you've invested your money, follow the advice of the person in charge of the Ponzi scheme, and don't withdraw it. Always reinvest your profits. People who run Ponzi schemes don't want you to withdraw any money, because they're not actually earning enough money by investing, so they need your money to pay other victims.
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Step 7
Does everything above sound like bad advice? Good! You're on your way to AVOIDING being a Ponzi scheme victim. Further below are some web sites with more advice on how to recognize and avoid Ponzi schemes, so you won't be scammed.
