Most people become quickly lost when numbers and financial terms are being tossed around. All they really want to know is the cost or gain, particularly in the short term. It is hence easy to deceive them by using complicated financial wording. The unsuspecting party is then shocked when they are swindled in an investment deal they thought was safe.
Example
A retired woman is called by a nice young man who wants to visit and discuss her financial security. This sounds good to her, since she has most of her extra cash in savings because she doesn’t know how to invest.
When he arrives, he politely accepts her offer of coffee and cookies and then sits down to discuss her financial future. The lady is just happy to have someone visiting, even if she doesn’t understand what he is saying with all the numbers. He concludes his presentation by telling her that she can’t lose by investing with him. It all sound wonderful to her. She hired him so that she would not have to understand the details.
He takes the check for the full amount of savings and is on his way. The lady never hears from him again, or sees a cent of her savings!
