Money & WorkMental model
Why '8% guaranteed' is always a lie.
Return is the payment for bearing risk. Safe assets like savings accounts pay little because nobody needs to reward you for safety. Stocks swing wildly, so investors demand more over the long run. If someone promises high returns with no risk, either information is missing or it's fraud. The market doesn't pay for risk you're not carrying.
Useful: For every offer, ask first: which risk is paying for this return?
Source: en.wikipedia.org