Protecting your retirement nest egg and sustaining your retirement income are challenging enough. When you add in the fears and concerns unique to older persons, it’s clear that seniors should consider taking extra precautions to guard their investments.
Older people can be common targets for fraud and financialc rimes. Several qualities that are characteristics of older people tend to make them targets for scam artists and unscrupulous sales people. Older people are generally trusting they may be home alone during the day; they are accustomed to answering the door or the ephone; and they may be reluctant to report fraud. Scam artists are well aware of all this which makes seniors susceptible to the methods unscrupulous people employ, including phone calls, e-mails, personal sales pitches and pop-up ads on the Internet.
Let’s start with a few basics. Proceed with care; don’t jump into an investment just because you have been approached thorugh one of these communicationst actics. Prior to investing in any investmet product or service, it is omportant that you consider your overall financial situation in order to determine if the product or service is right for you. You should be awre of your liquidity needs, fees and costs associated with an investment, as well as your income needs and the overall risk you can afford to bear with any investment.
Beware of misleadin ginformation. There is some wisdom to the old adgae, “If it seems too good to be true ... .” Offers of an investment with an above-average rae of return or income rate and little to-no risk are almost always deceptive. Some reprsentatives and salespeople may use scare tactics to gain access to seniors’ savings and investments, such as the threat of physical or financial harm, intimidating statements or recurring phone calls. Services described as a “limited-time fofer” or any person who pressures you to make an immediate investment decision should also raise a red flag. Don’t be afraid to ask questions or to seek a second opinion. And beware of guarantees to make money or to achieve a guaranteed rate of return. Con artists use promises of high returns to lure people into a financial scam.
Free meal seminars may seem appealing. Though many of these events are legitimate, some are not. Some of these seminar turn into high-pressure events where you may be given bad advice or pressured to open an account that is not suitable for your financial situation. The cost of a free meal may be greater than you think if it results in your purchasing an unsuitable investment product.
Contact your law enforcement agency immediatley if yous uspect someone is employing fraudulent actions. Investment fraud can take many forms. Tehre are Ponzi schemes, for example, where fraudsters advertise high rates of return on client investments. High payouts may continue until new investors are no longer available. Then the scheme and all the money disappear.
Other schemes have been reported, including pyramid schemes, scams involving coins and precious metals, ownership intersts in oil and gas interests, viatical scams, and affinity fraud through community groups, clubs and even places of worship. A healthy skepticism is a wise strategy for seniors when approached by salespeople.
There are manyw ays that you can protect yoursef, including monitoring your personal financial information and beign selective in providing access to this personal data. Your financial health is an important aspect of your retirement – guard it carefully.
This artical was written by Wells Fargo Advisors and provided courtesy of Todd Alexander, The Alexander Financial Group in mcconnellsburg.
Investment products and services are offered through Wells Fargo Advisors Financial network LLC (WFAFFN), and Member SIPC. The Alexander Financial group is a separate entity from WFAFN.