The Alert Investor: Senior Investor Alert

Seminars, Specialists and Abusive Sales Practices

You’ve saved your pennies throughout your life, but have you prepared yourself for those who will try to nickel and dime you out of your hard earned retirement? 

Every investor deserves protection, especially the growing number of seniors who are depending on every dollar of their savings for a financially secure retirement…So how can you safeguard yourself and the ones you love?

More today in the Alert Investor…brought to you by NASAA…the voice of state and provincial securities regulators.

Warning bells should go off if you hear or see any of the following promises….Guaranteed results….No Market risks… or Make this call today to secure your financial future…

You may have even received a notice in the mail making such promises, but you should know that unscrupulous salespeople are using these pitches and the lure of a free gourmet meal held at a swanky restaurant to get you to attend. But what’s not on the menu is the disclaimer that these meals are really sales seminars targeting you and your money.

NASAA President Karen Tyler:

KAREN TYLER: "Recently state securities regulators conducted examinations of free lunch seminars and proved the point — there's no such thing as a free lunch. Seniors seeking investor education and advice at a seminar should not be subject to misrepresentations, high-pressure sales tactics and outright fraud. The entire community of state securities regulators will continue our active pursuit of criminals who cheat seniors out of their hard-earned retirement savings."

Regulators also have uncovered another tool in a con artists kit…the art of using professional-sounding titles as a way to *imply* financial expertise that isn’t there.

Regulators are concerned these titles may offer a false sense of security and are increasingly being used as a tool to defraud seniors.

Investigations into these “senior specialist” designations reveal that while some are legitimate, many are no more than marketing tactics used to peddle unsuitable products to unsuspecting seniors. Usually all that’s required to secure the title is completion of a weekend course, a check to cover costs and the designation is awarded.

KAREN TYLER: "Just because someone calls themselves an expert doesn’t mean they are one."

Savvy seniors can take the following steps to protect themelseves:

    Stay in charge of your money. Be wary of anyone who suggests investing your money into something you don't understand or who urges that you leave everything in their hands. 
    Watch out for salespeople who prey on your fears. Con artists play on your worries about outliving your savings… Don’t let fear cloud your good judgment. 
    Don't make a tragedy worse with rash financial decisions.  Don’t let the death or hospitalization of a spouse be the doorway to financial fraud. Get the facts before you make any decisions. 
    Monitor your investments and ask tough questions. Don't compound the mistake of trusting an unethical investment professional by failing to keep an eye on the progress of your investment. Insist on regular written reports.
    Finally don't let embarrassment or fear keep you from reporting investment fraud or abuse. Criminals prey on your fears and count on that to prevent you from notifying authorities of a scam. Every day that you delay reporting fraud is one more day that the criminal is spending your money and finding new victims.

For more tips on becoming a more alert investor … check out our Senior Investor Resource Center at  nasaa.org.

NASAA…. Because every investor deserves protection.