How Not to Buy an Island

Hi Scott,

A couple of years ago you warned retirees about investing with a company that owned Dunk Island, who were promising high returns. Well, I just read about Dunk’s repossession. You predicted this!

Mandy

Hi Mandy,

Yes, I predicted it … and so did a lot of others in the media.

Collectively we did our best to warn people of the dangers of investing in a high-risk investment that marketed itself as a safe alternative to bank term deposits.

Look, this is my seventeenth year of writing this column, and over that time I’ve seen plenty of outfits come and go promising high returns with low risk. And every time they lure in the financially illiterate, and do a hell of a lot of damage.

Case in point: it’s been reported in the media that Pauline Hanson’s One Nation hosed $500,000 after investing with the cowboys at Mayfair.

Please explain?

Scott.