Investments That Could Be Financially Dangerous

We want to get profit from our investment. It is a good financial planning as we can increase our saving for our future. But you need to be aware as not all investments could bring us big buck. Some of them can be financially dangerous and you need to take a calculated risk. Read this list of investment that could be financially dangerous.


1. Investments that seem too good to be true
– You need to be wary if the promises of constant large returns that don’t add up. There is no secret formula to maintain consistent large returns as the market fluctuates over time. Always do your own due diligence and ask for references.

2.A new car

– Car won’t be a good investments. New cars will lose their value at different rate based on the model, miles and the work they had done in them.Luxury cars usually depreciate faster. Other than loss of value, you also need to consider the cost of ownership including maintenance, repairs and gas. The best bet is usually to buy a certified preowned vehicle.


– Maybe some of you think owning a restaurant is good idea but it ain’t easy as the restaurant industry is notoriously fickle and difficult. Lack of the industry experience or real business background could make us fail to run the business. If you want to invest in restaurant business you need to diligence on the business plan, run the numbers and look into your partners and manager’s background.

4.Real Estate

Real Estate
– Many of us think real estate could bring profit in the future. Eventhough the price of housing could increase year by year but there are no guarantees you could profit in each of investment. Before buying a home even for yourself, you need to have financially secure with good credit, savings and a large down payment. You need to have steady job with fixed income, savings to cover repairs and a large emergency fund to keep your home above water.

Source :- Finance Yahoo

That’s all the information about investments that could be financially dangerous. Maybe you need to pay attention about this point before make investment.

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