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FOMO: The Four-Letter Word That Can Cost Investors a Fortune

What Travis Kelce, a century-old con man, and the fear of missing out can teach us about protecting wealth.

Imagine being a professional athlete earning millions of dollars, surrounded by agents, attorneys, business managers, and presumably sophisticated financial advisors. You would think that someone in that position would be relatively insulated from financial fraud.

Apparently not.

In September, news broke that Kansas City Chiefs superstar Travis Kelce was among the victims of a $35 million Ponzi scheme. The perpetrator, Texas investment manager Siddharth Jawahar, was sentenced to 11 years in prison after defrauding investors through his firm, Swiftarc Capital.

Kelce wasn’t alone. Other professional athletes were also linked to the investment operation. These are successful people with substantial resources and, one would assume, access to professional advice. Yet they were caught up in a scheme that has been around for more than a century.

We don’t know what motivated Kelce to invest, what advice he received, or whether FOMO played any role. But his experience provides a valuable reminder: Wealth and sophistication don’t make anyone immune to a bad investment.

And that brings us to one of the most dangerous forces in investing: FOMO.

The Fear of Missing Out

FOMO, or the Fear of Missing Out, is hardly a new phenomenon. Human beings have always been drawn to opportunities that promise extraordinary rewards, particularly when they believe others are getting rich.

What’s changed is the speed at which these stories travel.

Today, we’re bombarded with tales of overnight fortunes. A neighbor made a killing in cryptocurrency. A friend got into a private investment that’s supposedly delivering 20% annual returns. Someone at a dinner party knows an entrepreneur whose latest venture is about to revolutionize an industry.

Suddenly, the diversified portfolio you’ve carefully constructed over decades seems a little boring. And that’s precisely when investors can get into trouble.

FOMO is powerful because it transforms investing from a disciplined financial exercise into an emotional competition. Instead of asking whether an investment is appropriate, we begin asking why everyone else seems to be making more money.

The fear of losing money gets replaced by something potentially more dangerous: the fear of missing an opportunity.

Meet Charles Ponzi, the Man Behind the Name

One of the most fascinating stories in financial history belongs to Charles Ponzi, an Italian immigrant who arrived in America in the early 1900s with little money and enormous ambitions.

By 1919, Ponzi had bounced between jobs and failed ventures before stumbling upon something intriguing: international postal reply coupons.

At the time, postal exchange rates between countries created a potential arbitrage opportunity. Ponzi believed he could purchase these coupons inexpensively overseas and redeem them in the United States at a profit.

There was actually an economic idea behind his proposal. The problem was that turning it into a massive, profitable enterprise was impractical. That didn’t stop Ponzi.

He began promising investors extraordinary returns, reportedly 50% in just 45 days. Word spread rapidly. Investors lined up, neighbors recruited neighbors, and people entrusted him with their savings.

Why wouldn’t they? Early investors were receiving their promised payments.

But the money wasn’t coming from profitable investments. Ponzi was using money from new investors to pay earlier ones.

The operation required an endless stream of fresh money to survive. For a while, it worked spectacularly. Ponzi became a celebrity, celebrated as a financial genius. His apparent success attracted even more investors, creating a self-reinforcing cycle of enthusiasm. Eventually, the mathematics caught up with him. The scheme collapsed in 1920, leaving thousands financially devastated.

Ironically, Ponzi didn’t invent this type of fraud. Similar schemes existed before him. But his name became permanently associated with the practice.

It’s quite a legacy. More than a century later, we’re still talking about him. For anyone who enjoys a good financial history story, I highly recommend NPR’s Planet Money episode, “Charles Ponzi’s Scheme (Plus a New Scam)”, released October 7, 2026. It’s an entertaining 26-minute account of the man, the astonishing rise of his operation, and its eventual collapse.

Different Century, Same Human Nature

There are striking similarities between Ponzi’s investors in 1920 and investors today. The investments change. The technology evolves. The terminology becomes more sophisticated.

But human behavior remains remarkably consistent.

Fraudulent investment opportunities often share familiar characteristics: unusually attractive returns, limited access, complicated explanations, impressive connections, and a sense of urgency.

Sometimes the pitch sounds almost irresistible.

  • “This opportunity is normally reserved for institutions.”
  • “We’re only accepting a few more investors.”
  • “Several prominent families are already involved.”
  • “You need to decide quickly.”

Notice what these statements have in common. None tells you much about how the investment actually makes money.

Instead, they appeal to exclusivity, social proof, and urgency. And they’re remarkably effective.

Of course, not every exclusive investment is fraudulent, and not every outstanding return indicates wrongdoing. There are legitimate private investments and talented managers.

But legitimate opportunities should withstand scrutiny. In fact, the more extraordinary the claimed returns, the more important the due diligence.

The Value of a Healthy Dose of Skepticism

One of the responsibilities I take seriously as a financial advisor is helping clients distinguish between an attractive opportunity and an unnecessary risk.

That doesn’t mean avoiding innovation or rejecting investments simply because they’re unfamiliar.

It means asking the right questions before committing capital.

  • How does this investment actually generate returns? If the explanation is convoluted or impossible to understand, that’s a warning sign.
  • Who has custody of the assets? Independent custody, reliable reporting, and reputable auditors provide important safeguards.
  • What could go wrong? Every legitimate investment carries risk. Anyone suggesting otherwise deserves additional scrutiny.
  • Can the performance be independently verified? Impressive presentations and testimonials are not substitutes for reliable evidence.
  • Does this investment fit your financial plan? Even a legitimate opportunity can be inappropriate if it creates excessive concentration, illiquidity, or risk.

And perhaps the most important question: If this opportunity is so extraordinary, why am I being offered it?

That simple question can be remarkably revealing.

Sometimes the Best Investment Is the One You Don’t Make

I’ve spent enough years in this profession to appreciate that building and preserving wealth are two very different disciplines.

Creating wealth often involves taking concentrated risks, starting businesses, or making bold decisions. Preserving wealth generally requires a different mindset: diversification, patience, sound judgment, and knowing when to say no.

There’s nothing exciting about declining an investment that subsequently doubles in value. But there’s tremendous value in avoiding an investment that permanently destroys capital.

The objective isn’t to participate in every opportunity. It’s to make thoughtful decisions that support your long-term financial independence. And remember, you don’t have to swing at every pitch.

Even Travis Kelce, who has made a remarkable career out of catching footballs, apparently encountered an investment that should have been dropped.

A Final Thought: Don’t Let FOMO Cloud Your Judgment

Charles Ponzi built a financial empire on something that remains abundant today: the human desire to get rich quickly.

More than a century later, the names, investments, and technology have changed, but human nature hasn’t. Even wealthy, successful, and presumably well-advised individuals can fall victim to the promise of extraordinary returns.

The antidote isn’t cynicism. It’s curiosity, healthy skepticism, and the discipline to ask tough questions.

When an investment promises unusually high returns with little risk, resist the temptation to jump in. Understand how it works, do your homework, and seek independent advice. Most importantly, don’t let the fear of missing out override the judgment that helped you build your wealth in the first place.

After all, when an investment sounds too good to be true, don’t worry about missing the boat. Make sure the boat actually floats. Stay safe out there.

Best, 
Joe

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