Yesterday my partner came up with an idea to deposit a good some of money in a fixed deposit account on an online banking platform offering a 13% interest rate, they offered to pay the interest upfront but the initial deposite would be locked in till the exact stipulated time. Though this may sound like a good deal I discouraged him from making this investment for the following reasons.
Firstly with the rate at which the traditional currency in my country is steadily loosing value and the proposed profit and initial deposit might just be valueless at the matured time this deal might be of little or no value.
Secondly these platforms in my opinion cannot be trusted as different reasons can lead to their folding up and shutting down. I understand that life's a risk but some risks are not worth taking.
On the other hand I offered a solution. I asked him to invest in Bitcoin, now even though the price of bitcoin is volatile, in my opinion it is still more profitable to invest in Bitcoin especially for long term investment than in any fixed deposit scheme.
If you were in the position to give financial advice to someone looking for a long term financial investment, what would you advice?...
In my experience, giving people financial advice is nothing but a recipe for disaster. You could, in the end, even be legally sued if the person in question makes a loss and decides to blame you. I do not recommend it. Personally I have never heard of anyone I know getting in legal trouble for giving bad financial advice but it can happen.
You can recommend Bitcoin and name all the reasons why you think it is a good investment but if the person is dubious, there is no point in trying to convince them. Sooner or later they will realize the potential of Bitcoin by themselves without your help. And it will be less of a headache for you.
People need to feel like they discovered an investment opportunity for themselves.