SENIORS MOST VULNERABLE INVESTORS

According to the North American Securities Administrator’s Association (NASAA), seniors are the most vulnerable investors.  Seniors are a viable target for financial predators.  Why?  According to Money magazine, the average household led by those 75 and over has a net worth of $638,000. Secondly, seniors’ ability to understand complex financial transactions lessens with age.  Thirdly, seniors tend to be more open to sales pitches because they have time to take the sales calls or go to lunch meetings.

Here’s the pitch:

(1) Let me buy you lunch.  How about a free meal at a local restaurant, hotel or community center?  Sounds great, right?

(2) Don’t worry! Agents use the power of persuasion and overcome seniors’ fears about investing money.

(3)  Do you want a new best friend?  Want to meet every week and talk about the good ‘ol days?  Agents will be there, but don’t ask about their commissions!

(4) I can get you ___ %.  Seniors fill in the blank with the return they want and guess what?  The agent will promise high returns, sometimes double-digit returns.

Saveandinvest.org, a project of the FINRA Education Foundation, has identified risk-factors that are associated with victims of financial fraud:

1.  Ownership of high-risk investments, such as penny stocks.

2.  Seniors who do not contact due diligence on agents.  For example, does the agent have any disciplinary records?

3.  Attended “free lunch” seminar(s).

4.  Called 1-800 numbers in response to a financial product offer.

5.  Have not signed up for “Do not call” list.

6.  They read their junk mail.

7.  They do not have a formal financial plan in place.

8.  Listen to the latest financial tips rather than seek professional advice.

9.  Have recently suffered a serious financial set back, such as serious illness or death of a family member.

10.  They live far from family members and do not have a broad range of local friends.

In addition to FINRA’s risk factors, I would add, seniors who have failed to opt-out of firm offers of credit and insurance ( aka promotional offers) may be at risk.  Consumers have the right to permanently opt out of promotional offers with all three nationwide consumer reporting agencies, Equifax, Experian and Trans Union. Click HERE to opt out of all three credit bureaus firm offers of credit and insurance.

HAVE YOU OR A FAMILY MEMBER PAID TOO MUCH FOR A FINANCIAL PRODUCT OR PURCHASED A PRODUCT THAT MAKES NO SENSE? CONTACT CONSUMER FRAUD ATTORNEY MICAH ADKINS FOR A FREE CONSULTATION.

FOR ONLINE ASSISTANCE USE THE CONTACT FORM BELOW:

[contact-form] [contact-field label=”Name” type=”name” required=”true” /] [contact-field label=”Email” type=”email” required=”true” /] [contact-field label=”Telephone Number” type=”text” required=”true” /] [contact-field label=”How can we help you?” type=”textarea” required=”true” /] [/contact-form]