|
It seems like there is a new type of investment created every five minutes and although each can be very different in nature, they all have a common theme; to make us multi-millionaires in our sleep! Here is a look back at some of those investments that never quite worked out how they were planned for various reasons, either poor planning but the responsible institutions or changing economic circumstances.
Indexed funds and exchange-traded funds have a poor track record when it comes to looking at some of the worst investments ever. Despite this, the Vandex 500 index holds over $115 billion worth of assets. Now where index tracking funds fall down is not on the poor performance of the related stock, but on the extortionate rates charged by brokers and fund managers. As soon as you invest through a fund manager, you will on average throw 4.5% of your investment down the drain by way of charges that are well over the odds.
The dot com boom and subsequent bust also provided us with some of the worst investments ever. One of the most infamous was the collapse of boo.com, a company which managed to spend $188 million in just six months before finally being declared bankrupt a few days later. Of the individual investors, a wealth Lebanese family reportedly lost over $20m when boo.com collapsed. Another sorry story is that of e.Digital Corp, whose share price rose to a magnificent high of $24.50 in January 2000 before it quickly retraced and has traded below $0.29 since 2006, costing investors millions.
Even the trusted endowment can be a horror story for some investors. The safe investment which matures over a specified period can be costly to those that seek to cash in on their fund before it reaches maturity. Surrendering a policy to the broker can cost the investor as much as 35% compared to the value they would achieve if they sold the endowment to a third party. This alone can be an expensive mistake and just goes to show that searching around for the best deal is always worthwhile!
Hopefully this hasnt scared you away from the financial markets, instead providing a warning that even the best sometimes get it wrong and that if you are about to make an investment of any kind, not least those mentioned above, then you should seek professional advice and evaluate the market before you proceed. Take care!
It seems like there is a new type of investing created every five minutes and tho' each can be very unlike in nature, they all have a vulgar theme; to make us multi-millionaires in our sleep! Here is a look back at some of those investments that never quite worked out how they were planned for diverse reasons, either poor preparation but the responsible institutions or changing economical circumstances.
Indexed funds and exchange-traded funds have a poor track record when it comes to looking for at some of the worst investments ever. Despite this, the Vandex 500 index holds over $115 one million million worth of assets. Now where index trailing funds fall down is not on the poor execution of the related stock, but on the extortionate rates charged by brokers and fund managers. As soon as you clothe through a fund manager, you will on average throw 4.5% of your investment down the drain by way of charges that are well over the odds.
The dot com boom and subsequent bust also provided us with some of the worst investments ever. One of the most infamous was the collapse of boo.com, a companionship which managed to spend $188 million in just six months earlier finally being declared bankrupt a few days later. Of the individual investors, a wealth Lebanese fellowship reportedly lost over $20m when boo.com collapsed. Another sorry story is that of e.Digital Corp, whose share price rose to a magnificent high of $24.50 in January 2000 before it quickly retraced and has traded below $0.29 since 2006, costing investors millions.
Even the trusted endowment can be a horror story for some investors. The safe investment which matures over a specified period can be costly to those that seek to cash in on their fund in front it reaches maturity. Surrendering a policy to the broker can cost the investor as much as 35% compared to the value they would reach if they sold the endowment to a third party. This alone can be an expensive err and just goes to show that searching just about for the best deal is always worthwhile!
Hopefully this hasnt scared you away from the financial markets, instead providing a warning that even the best sometimes get it wrong and that if you are about to make an investment of any kind, not least those mentioned above, then you should seek master advice and evaluate the market before you proceed. Take care!
.
About the Author (text)John McE writes articles on a number of subjects including investments APARTMENT LIVING.INFO
|
|
SIGN
UP FOR FREE
