A friend recently asked if I would invest $10,000 for him. I shrugged it off but he proceeded to tell me that he needed to make a quick buck to pay for some medical expenses he was about to incur...
Many people view the stock market as a "get rich quick scheme" -- you just need to know how to play the game.
This wasn't the first time I've been asked by someone to invest their money to make some fast cash. I know it won't be the last, either.
In these sorts of situations, I try to tamper their expectations by letting them know that it's really not that simple (or easy). I tell them that even if I were to generate a "quick" 10% annual return on their investment, it doesn't really add up to much in the short term. After all, a 10% return on $10,000 is only $1,000... And that's over the course of 12 months. It's most definitely not going to be enough to cover any major medical bills.