Money Scams 2014: Avoid losing in insurance, mutual funds, all financial services

Is that email from my relative, asking for help, real? Is the 8% return on that annuity offered over lunch real? Do 70% of all seniors really need Long Term Care insurance? Cancer insurance covers all cancer health expenses? "Work at home" job paying $6,795 a month. Really? "StockTips Delivered to your Inbox StockTips is the #1 stock alert service...As always membership is 100% FREE Sign up now " Unfortunately, there are no easy way to protect yourself from scams. However, you can save yourself the pain of loss and embarrassment by learning how the scammers do it. We are human and can't avoid responding to triggers of our feelings. However, we can know better ways to invest and make money. People who passed on Madoff's pyramid scheme were people who already had a successful investment plan. They passed because they had a plan. Scammers are sales people. The crucial principles for sales people are: 1. Enchantment-gaining our trust by satisfying our emotions. 2. An emotional story is more powerful than the facts. 3. Everyone wants to feel important and respected. Your first question for any investment offer or deal is to know "what the seller obtains"-how are they compensated when you sign up or buy something? We protect ourselves by using our own investment strategy--one we understand.