Ponzi is a term you would have heard bandied about again recently. It paints a picture of investor fraud where investors capital is repaid to them under the false guise of earnings. The recent death of fraudster Bernie Madoff in a US prison – 12 years into his 150 year sentence – for a $25 billion Ponzi scheme, should remind us of the timely catchphrase "if it sounds too good to be true, it usually is…".

Perhaps I live a sheltered existence, but lots of my client's investment portfolios that cross my desk every day are from those who seemingly apply conservative balanced risk, seeing investment returns around 5%. I regularly test my observations with Tammy, our in house financial planner, and she says "…yep, that's about right…".

Whether it's your gut or your head, I'm sure you can tell if something sounds too good to be true. The spruikers wanting to get their hands on your hard earned cash will forever prey on the human emotions greed, fear, and even the combination of both – FOMO – the fear of missing out.

Back yourself - that deep down feeling says it all.

If you would like to talk to one of our financial advisors, contact us to discuss your specific requirements.