Keep Investments Risks Low: Avoid These Sales Tactics

If you ever hear any of the following sentences - run, don't walk away.

One, your profit is guaranteed or you can get in on the ground floor. This offer is only available today. There's no risk. Just make the check out to me, I'll send the paperwork tomorrow.

The odds are that someone telling you any of these phrases is out to rip you off.

Only bank accounts and CDs and Treasuries are guaranteed.

Unless Bill Gates is offering to get you in on the ground floor, you probably should wait until the building has an elevator.

No legitimate investment is ever available for one day only.

Any investment beyond bank accounts and Treasuries carry risk.

And never ever make out a check to a person who's supposedly selling an investment. And don't hold your breath waiting for the paperwork.

Most importantly, don't ever invest with a stranger over the phone.

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Child Savings Accounts

When opening a savings account for your child, make sure their Social Security number is used as the account's tax identification number. That way, as long as your child is under age 14, interest earned will be taxed at your child's lower tax rate, not at your tax rate. This rule holds true as long as your child earns less than $1,300 a year in interest.

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