ASIC view on this seminar
here is the link to ASIC website fido on this seminar -
http://fido.asic.gov.au/fido/fido.nsf/print/FIDO's+invited+to+an+investment+seminar?opendocument
FIDO's invited to an investment seminar
FIDO recently received 'complimentary VIP tickets' with a purported 'value' of $149 printed on them, to attend what the promoters describe as 'the country's #1 financial conference'.
This is only one of numerous wealth creation seminars on the market. However, motivated by the invitation, FIDO decided to examine this seminar's marketing claims more closely simply to point out:
what questions you could ask yourself and
what steps you could take to save your time and money.
Who's presenting and what's known about them?
Claim
The 'country's #1 financial conference', featuring 'four of Australia's Greatest Financial Super Stars'.
FIDO's comment
We checked ASIC's databases to see if any of the presenters of the seminar who intend to discuss shares or investments held an Australian financial services licence. They did not. Nor did the conference organising company.
Using an internet search engine, we discovered that three of the four speakers appear to live and work in the USA, not Australia. (FIDO could not find any leads about the fourth person.)
The internet search engine also led FIDO to a bulletin board that mentions a couple of speakers, and relates some experiences of others who have attended the course. This can be useful information, although not always a reliable guide about the worth of a course.
How credible are claims about what you will learn?
The promotional flyer makes various claims. FIDO selected a couple for analysis and comment.
Claim
'Earn 15-60% interest per year with a unique government approved investment'.
FIDO's comment
The first warning sign about this claim is the representation that it is 'government approved'. No Australian government 'approves' investments of any kind. Whatever investment you may consider, Australian law makes it clear that you must decide for yourself whether it's suitable for you.
Australian governments may offer some types of investments, for example government bonds, although none of these currently pay 15% -60% interest per year. Australian governments may give some investments favourable tax treatment, for example superannuation funds pay only a maximum of 15% tax on their investment earnings to encourage retirement saving. However, these examples are a long way from governments approving investments.
Claim
'You will learn how to retire in 2-5 years with an additional cash flow of $9,100.78 per month.'
FIDO's comment
Such a precise amount, right down to the 78 cents, contrasts strangely with the promise of retirement with a broad range of three years.
Forecasts about future earnings and cash flows can only be made if people have a reasonable basis for them, and will usually depend on the individual circumstances of each person. It is difficult to conceive how someone could estimate your future earnings or cash flows without knowing anything about you.
Would this be value for money?
FIDO has been offered free tickets. This reminds us of the saying 'you get what you pay for'.
Free seminars are often a marketing device to enrol people in costly follow-up training or to sell things like books, CDs, software or videos. If you're offered these products, stop and consider what else you get for your money. There are some excellent courses and books, often at far lower cost.
The seminar appears to run for nine and a half hours on a Saturday. It is often the experience of consumers who attend such seminars that it can be difficult to leave before the seminar has finished. How much is nine and a half hours of your time worth to you?
Lots more information about seminars
--------------------------------------------------------------------------------
Date Printed 10 June 2004, © Australian Securities & Investments Commission
www.fido.asic.gov.au
