The Registrant and Registration Statement Checking

Before investing, you should always check whether the person or firm offering the investment is registered with the SEC or your state securities regulator.

It's also a good idea to check the investment's registration statement to see if it's registered with the SEC. You can also find this information in Edgar. If the investment is not registered, this can be a red flag that it may not be valid.

As we mentioned earlier, you should be wary of anyone who promises high returns with little or no risk. Because there is no such thing as a free lunch. Anytime someone promises you higher-than-average returns, they're probably trying to scam you.

Instead of chasing high returns, focus on investments that can generate decent, consistent returns over time. While these investments may not make you rich overnight, they will help you build your wealth in the long run without taking undue risks.