Avoiding the Wealth Creation Con Artists

Many people in their 50s and older are recognising they are getting closer to retirement age, and may not have enough superannuation to get them through their later years. And it’s no surprise that wealth creation experts are popping up everywhere to help, offering books, seminars and investment options! Some of these experts offer sound advice, others promote risky strategies, and in some cases, others are con artists selling dodgy wealth creation schemes.

While some investment scams are obvious, others are not so much. Con artists may not necessarily look like the Artful Dodger or the super smooth talking scammer you might see on a TV show or film. In some cases, they may be trusted members of the community.

So, how do you tell the difference between a con, and a sound financial expert who will provide you with good advice? Read on for some tips.

Types of Investment Scams

There are numerous types of money scams, some of which include:

• False self-managed super funds (SMSFs) – often involving large commissions for moving your super to a possibly fake SMSF.
• Online stockbroking scams – which can lead to loss of money and identity theft.
• Tax scams – promise of tax refunds that don’t have anything to do with the tax office!
• Property schemes – that promise enormous returns for little effort.

What To Watch Out For

When it comes to investing, there are no quick fixes or magic answers, and all investment involves some level of risk. But there are certain things to be vigilant about, including:

• Fantastical claims that promise quick and guaranteed returns for minimum risk.
• Persistence and pushiness – for instance if you are being pushed to switch from your current investment to theirs with outlandish promises, or to be quick about making a decision or you will ‘miss out’.
• Slick websites that show constantly outstanding returns way over and above their peers.
• Cases where a junior staff member calls you and then passes you onto someone more senior when you show interest.

Think about it – if it was as easy as the person promising you streets of gold says, why are they sitting in an office talking to you?

Questions and Research

Of course not all investment schemes are scams and there are plenty of legitimate financial experts out there.

Before you hand over details or any money, it pays to ask a few pertinent questions, such as the name of the individual or company and their address, as well as their Australian Financial Services Licence number.

If they don’t provide you with an AFS number and you suspect a scam, you can report them to ASIC. If they do, you can check their number through ASIC’s professional registers. You can also use the register to check out details of companies.

In general, just be sure to do plenty of research before handing over your hard-earned money or your personal details, by checking out the credentials of the individual or company, carefully assessing the claims they are making, and taking your time about it all.

It also pays to talk to qualified and licensed chartered accountants or a self-managed super accountant for assistance with investments, retirement planning and superannuation, to help you secure the right types of investment according to your risk profile, the current market and your particular financial goals.

Six Things that Can Keep a Business from Growing

Small business owners might start out with a grand vision, but end up falling into day-to-day ruts, and losing their direction and view of the bigger picture. We highlight six things business owners sometimes do that can limit business growth if they are not remedied.

1. Failure to adapt to changing technologies and buyer behaviour

Businesses that fail to make use of new technologies risk missing out on a major chunk of the market, especially as buyer behaviour is shifting more towards online research and purchasing.

Examples of this includenot having a website in place, especially as a high-quality site can be an excellent marketing tool, as well as failure to utilise social media for business marketing and engagement, and not having a solid digital strategy in place.

2. Poor financial and cashflow management

Running a business successfully requires rigorous financial management in order to ensure adequate cashflow to run the enterprise, to pay wages and bills, and to remain compliant with the tax office.

Small business owners that are disorganised and that fail to put proper procedures and controls in place for bookkeeping and financial management can end up lurching from one disaster to another, and then breathing a sigh of relief that they survived another week! They may also end up paying more than they should in interest and penalties through falling behind on their accounts.

Remedying this may require renegotiating the terms on finance,and ensuring they hire people with the right skills,such as a Xero bookkeeper,to manage their accounts properly and professionally.

3. Being too busy to work on the big picture

It can be easy for small business owners to try to do it all themselves to save costs, which can end up leading to a focus on short-term results and achievements. However, delegating tasks to those who have the skills to perform them can enable the owner to get on with longer-term planning, focus on the bigger picture, and to keep an eye on the wider business landscape. This islikely to involve some letting go of control, and trusting others to do the job!

4. Not meeting customers’ needs and expectations

This can be potentially disastrous for any business! All businesses should have customers as their top priority, as without their customers they would not exist. SME owners should make it a priority to listen to their customers to find out what they really want, monitor how their needs are changing, and to always deliver on promises.

5. Thinking like an employee instead of a business owner

Running a business is a vastly different role to that of an employee. A valuable employee is concerned with providing the skills and services their employer wants, and with developing a career path.

Being a business owner on the other hand involves thinking like a strategist and steering the enterprise in the right direction. It also means keeping an eye on the bigger picture, and the external business landscape.

6. Failure to adapt to a changing workforce

The way of work is changing, and not adapting could result in losing valuable employees. These days, many workplaces are embracing remote work, cloud computing, electronic communications, part-time work and flexible hours to meet the varied needs of different generations.

Even highly successful large commercial enterprises can end up in deep water when they fail to adapt to changing business trends and customer behaviour. If this is happening in your business, consider getting professional assistance from a business accountant in Sydney to help you to regain that great vision you had in the beginning!