# Worst you Can Be List



## dogcom (May 23, 2009)

Top list of anything to do with money from fees, stocks, credit cards, real estate, mutual funds, scams, taxes, car lease, mortgages, renovations and so on that can screw you over financially. 

A list of this stuff is good for people on the forum to see and hopefully save them from getting into trouble.




1. Of course falling for the Nigerian e-mail get rich quick scheme

2. Use of Money Mart or Pay-Day Loans

3. Buying penny stocks recommended by a friend 

4. Not paying off your credit cards

5. Just taking lowest quote from contractor without checking on them when doing a reno, you might get lucky but who knows

6. Going to advisor and just locking in those high fee funds that performed well in the last 10 years.

7. Go to seminars on how to get rich in the stock market 

8. Personally for me Pay Pal was a pain in the a-s and I would never use that again for a news letter or something like that.

9. News Letters can be good but to often they talk in circles so they are always right and are confusing at times which makes sense so you can't do it yourself


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## 44545 (Feb 14, 2012)

Buying plans/products that are a combination of investment and insurance.


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## kcowan (Jul 1, 2010)

10. Listening to talking heads on TV and thinking they make sense.
11. Reading the G&M (or worse the TorStar) and thinking they make sense.
12. Responding to a panic call for money from a relative stranded overseas.
13. Responding to any offer made to you by a telephone solicitor (or the front door).
14. Investing based on a newsletter or tips you hear about online.
15. Buying life insurance that is not term.
16. Buying stuff to impress others.

OK I am tired. Next?


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## dogcom (May 23, 2009)

The only time it might make makes sense to buy stuff to impress others is if you get a smoking deal you can brag about and you do need the item. The color or style may not be exactly what you want but it beats paying retail for getting exactly what you wanted.


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## Barwelle (Feb 23, 2011)

kcowan said:


> 12. Responding to a panic call for money from a relative stranded overseas.


A couple years back, I was in Ontario for a couple weeks. My grandmother, in Alberta, gets a call from "me" claiming that I had gotten into a car accident in Montreal (I didn't go to QC at all, but it was within the realm of possibility as far as she knew) and needed a couple thousand dollars to pay off a guy so I wouldn't get charged or something; he wanted her to wire money to him. He told her some story about how he ("I") was too ashamed about the incident to call my parents. She has the biggest heart out of anyone I know, so she fell for it. Fortunately my grandfather became suspicious, got on the phone, and realized it wasn't me. There were a few of these scams reported in the news around that time.

Crazy how this scammer knew my name, knew my grandparents' phone number, and managed to time it just right so that he called while I was down East. Don't know if that was coincidence or not. 

So as part of kcowan's #12, or as #17... Sending money to something/someone without checking to make sure it's legitimate.

18. Buying into a pyramid scheme. Guy in college tried to get me to buy a membership into this online club or business that had no obvious tangible benefit to join, but you would pay something like $500 to get in, then for every person you recruit, you would get a cut of their membership fee, eventually you'd break even and start making money yourself if you kept recruiting. He was heart-and-soul into this thing, telling me about how much money his father made by it already, how they've got the whole family involved... they had a few promotional videos, and it was all about the money you could make by recruiting for them... seemed like the only "purpose" of the club was to have members.

19. Buying/selling stuff that is already obselete. I was recently approached by a guy that was trying to sell videophones (as in, a land line phone capable of transmitting video).


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## Spudd (Oct 11, 2011)

Barwelle, on your #19, I had stock in Aastra Technologies for a while, they make video phones. I actually made money! I think they're not fully obsolete. It sure doesn't seem like a growth industry, though. 

20. Never believe someone who comes to your door and tells you they're from the gas company, unless they can prove it. Shortly after we moved into our current house a guy came to the door, said he was from Enbridge, and asked me to sign a sheet. I did not sign because I had a weird niggling suspicion about him, but I did print my name. Next thing I know, we're signed up for a gas reseller. Luckily it was cancellable because they did not have my signature, but it could have gotten messy.


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## daddybigbucks (Jan 30, 2011)

Not the worst but ...

Buy enough bank stocks that you get more in dividends than you pay in fees each month.
Bank need to pay high dividends so that is why they charge you an arm and a leg for everything.


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## Barwelle (Feb 23, 2011)

Spudd said:


> Barwelle, on your #19, I had stock in Aastra Technologies for a while, they make video phones. I actually made money! I think they're not fully obsolete. It sure doesn't seem like a growth industry, though.


You're right about that, it certainly is not a growth industry. People who want to make video calls are going to use FaceTime on their iPhones or Skype on their computers (or some other app/program) - not buy a video phone that uses a land line. Even businesses - There's not going to be a widespread adoption of video conferencing capability at every desk jockey's work station, whether it's phone based or computer/smartphone based. We're already deteriorating into an e-mail based antisocial society, who wants to phone someone and have them see your face too?

21. Some diet / fitness / get-killer-abs-and-burn-that-stomach-fat programs could probably be considered scams.


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## dogcom (May 23, 2009)

Spudd said:


> Barwelle, on your #19, I had stock in Aastra Technologies for a while, they make video phones. I actually made money! I think they're not fully obsolete. It sure doesn't seem like a growth industry, though.
> 
> 20. Never believe someone who comes to your door and tells you they're from the gas company, unless they can prove it. Shortly after we moved into our current house a guy came to the door, said he was from Enbridge, and asked me to sign a sheet. I did not sign because I had a weird niggling suspicion about him, but I did print my name. Next thing I know, we're signed up for a gas reseller. Luckily it was cancellable because they did not have my signature, but it could have gotten messy.


Didn't look like the number 20 lesson helped much since he signed you up anyway without your consent, but it was a lucky thing you got out of it.

21 is a good one Barwelle because no matter the fitness plan it still takes old fashion hard work.

22. Putting your real name unless you and talking about your dog and whatnot on Facebook, you may as well stick your poster on a telephone poll.


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## fatcat (Nov 11, 2009)

i am just going to go with investing, the other pitfalls are too numerous to even tackle though i would try to boil them down to a few:

-never tell your girlfriend or wife she looks fat
-eat plenty of fiber
-never try to save money on mattresses or shoes

my top ten list for investing
10) do your research
9) never _ever_ believe that the experts know what they are talking about, question their authority
8) find a moderate amount of good information sources and stick with them
7) don't cruise the internet looking for the next bit of hot advice
6) never invest based on tips from anyone
5) always be bullish _and_ bearish, prepare for as many outcomes as you _reasonably_ can
4) don't constantly change your mind, stick with a sound plan
3) capital preservation is the prime directive after about age 50
2) be patient
1) be more patient


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## zylon (Oct 27, 2010)

http://i48.tinypic.com/25gt6dv.jpg


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## Causalien (Apr 4, 2009)

zylon said:


> http://i48.tinypic.com/25gt6dv.jpg


Paying > $300 per month on trading fees. 

That's about to change


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## kcowan (Jul 1, 2010)

23. Responding to anyone who is using a friend's cell phone without talking to the friend. This is a common scam when people steal your phone. They use the outgoing call history to pick a mark, call them and have some story about the friend who needs help (financial).

This happened to a friend who is really smart. But he accepted that his friend was in trouble and he tried to help him out. A variation on #12 but with sufficently different circumstances that it deserves a separate warning.


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## Navigate Sensibly (Oct 24, 2011)

Buying pure gold (other than for aesthetic purposes), whether it be directly or via ETF's such as GLD.


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## KLR650 (Sep 12, 2010)

Navigate Sensibly said:


> Buying pure gold (other than for aesthetic purposes), whether it be directly or via ETF's such as GLD.


Not trying to be smart, but can you please provide your logic behind this? Is it because gold doesn't pay any income?

This is pretty general, but I'll include it anyway,

24. Buying into anything that sounds too good to be true, cause it probably is. There are so many people out there looking to make a buck without having to work.


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## kcowan (Jul 1, 2010)

KLR650 said:


> 24. Buying into anything that sounds too good to be true, cause it probably is. There are so many people out there looking to make a buck without having to work.


Especially the people that are trying to sell you the deal. Make a few phone calls. Take in some more suckers.

I know some people from Howe Street that made their whole lives appealling to the greed of ignorant people.


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## smihaila (Apr 6, 2009)

25. Not reading "The Wall Street Gang" book by Richard Ney
26. Truly believing that the insurance industry in Canada is here to help you and agreeing to pay unafordable car insurance "premiums" (why the heck they call them like that - it's an award to them not to us  )


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## avrex (Nov 14, 2010)

27. Multi-level marketing companies. 

Hmmm, they pay you a commission to recruit new members? Ya, I'm pretty sure you are a pyramid scheme. 
To my colleague who invited me to his house for a friendly 'Multi-level marketing company' pitch, "I'm not impressed."


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## Square Root (Jan 30, 2010)

daddybigbucks said:


> Not the worst but ...
> 
> Buy enough bank stocks that you get more in dividends than you pay in fees each month.
> Bank need to pay high dividends so that is why they charge you an arm and a leg for everything.


Not sure I get what is wrong with this one? i think also that you might have cause and effect reversed re fees and dividends.


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## kcowan (Jul 1, 2010)

Here is an article from 50Plus on the subject:

Gordon Pape on why scams are successful


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## daddybigbucks (Jan 30, 2011)

Square Root said:


> Not sure I get what is wrong with this one? i think also that you might have cause and effect reversed re fees and dividends.


my apologies, I was never good at getting what is in my head onto a forum post. too "old school", i guess.

the "worst you can be" list item should read :

_Paying Bank fees._ 

and my post explains why.


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## Belguy (May 24, 2010)

Investments!

"Investments are rigged against the individual investor in every possible way.":upset::frown::grumpy::disgust:

--Elizabeth Warren, Harvard Professor and Massachusetts candidate (D) for U.S. Senate 2012.


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## dogcom (May 23, 2009)

kcowan said:


> Here is an article from 50Plus on the subject:
> 
> Gordon Pape on why scams are successful



On being pressured.

28. Never be pressured to buy now or the deal will be gone tactic.

When you are younger this one is the toughest to deal with. It happened to me when I was young, buying a car the guy says that there will be someone coming later who is interested. Or a real estate agent will plan many showings at the same time so it appears the interest is very high on a property. Or the phone call saying the deal won't be around if you don't act now. I have learned not to care and if the deal goes it goes and there is always another one to be had around the corner.


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