Scams etc...
There are hundreds of things you can invest in from traditional accounts to classic cars and fine wines and there is always someone who is prepared to take your money and invest it for you. There are many companies and individuals out there who are fair and above board but, unfortunately, there are also scam artists out to take your money and run away. There is no way to definitely identify a scam and when you invest there is always some degree of trust you have to put into the deal anyway. However there are some general rules of thumb that you can use to help you.
If it sounds too good to be true then it probably is. This is the number one statement to remember. It does not mean that every good deal is going to be a scam but it does mean that the better the deal is the more research you have to do. Unless they are selling government bonds anybody who "guarantees" a return should set off a red flag. Nothing is guaranteed as nobody can predict the future. If they have a "secret" scheme or method that should also raise a red flag. Why tell me? Why not just sit back and rake in the money? More importantly, why do you have to sell me the information? Why not give it away?
I always try to find out how they make their money. Once you figure out their business plan you end up with a greater understanding of the whole marketplace for that type of investment. Check out their website, if they have pictures of their CEO then do an image search on them to see if they are stock pictures. Check with the BBB (Better Business Bureau) to see if they are listed and what their rating is like.
Be careful with schemes that invest in real things such as cars, wines etc... If you do not stock the item yourself then how do you know that they are stocking the items? Only deal with a company that has a good reputation in the industry. Do not put too much money into one thing, that way if it does go bad then you have not lost your entire retirement.
Be honest, it is difficult to cheat an honest person. Diversify so that if a company or investment goes bad then you have not lost everything. Do not be greedy, you may have one investment that has a high rate of return but do not put everything into it just because you want to maximise your earnings. Settle for a little slice of many pies, you may not maximise your earnings but you will definitely be able to absorb losses much better.
Above all, if you do not feel comfortable then do not do it. The idea is to invest money and have fun and not to spend all day and night worrying about it.