Thousands of people are ready to pay a small fortune for words of wisdom from wealth creation gurus.
These revered experts claim to hold the keys to unlock the door to a path of enlightenment and riches.
Unwrap their mantras and financial freedom seems to involve multiple income streams derived from property, binary options or dodgy investments.
Wealth creation seems to involve taking a pile of cash someone already has and handing most to a guru who will then help them invest the money in a scheme that they earn commission from while selling DVDs, seminars and courses at premium prices along the way.
A world of difference separates wealth creators from wealth managers.
The creators are plausible rogues peddling their wares in the well-worn footsteps of fraudsters weaving a web of half-truths to fleece their followers.
Why do gurus sell their secrets?
If their claims spur investors to part with their money and the deal turns sour, there is no come back other than through the courts. Legal remedies are often useless as gurus generally turn out as men of straw with no real wealth.
Wealth managers are regulated financial advisers with certified qualifications and licences to give investment advice. Regulation means they follow a professional code of conduct that includes scrutiny by independent experts who have the power to order compensation to victims of poor advice.
Before giving money to a wealth creation guru, ask why they are selling their secrets.
The reason is they have none. What they are offering is the same recipe of self-belief, the promise of no money down riches and a golden early retirement funded by passive income.
The hopefuls looking for untold wealth are cash cows milked for money.
Damaging your wealth
The income stream for the guru is what they can earn off the back of their disciples.
The current incarnation of wealth gurus are on the Middle East and European seminar circuit purporting to help DIY investors make money – at a price, that is.
If only life was so simple. These gurus can seriously damage someone’s wealth with their half-baked ideas.
Professional wealth managers must consider a wide range of personal issues before recommending financial products and services.
Ask them how about the best approach to financial planning for an investor who is UK domiciled living in the United Arab Emirates but planning to retire to Spain. And he a non-UK domiciled wife.
Don’t expect an answer anytime soon that resolves the problem.