A recent Money Magazine article featured on CNN.com does an excellent job in offering advice on how to protect senior parents from being taken advantage of by a financial advisor or investment fraud.
Unscrupulous financial advisors often take advantage of retired investors and it can result in a comfortable retirement nest egg disappearing overnight. According to the article, a 2010 study showed that “one out of every five older Americans has been sold an inappropriate investment, paid excessive fees for a financial product or service, or been a victim of fraud.” The article also notes an NASAA figure that states that 44% of investor complaints in the United States are from senior citizens.
As a national securities arbitration law firm, The White Law Group is a first-hand witness to this pattern. The firm receives calls every week from people concerned that their parents have been taken advantage of and much of the firms open litigation are such cases.
The Money Magazine article outlines 5 “pitches” that are often used to target unsuspecting seniors and should be on the radar of seniors and their children.
1. “Let me buy you lunch” – Seniors are often targeted through offers of a free lunch and seminar which can turn quickly into a hard sales pitch.
2. “I can ease your mind” – Financial protects are pushed on seniors by way of appealing to their worries and fears.
3. “I’ll be your BFF” – The isolation and loneliness of seniors can sometimes be a tool for those selling financial products.
4. “I can get you 8%” – Returns on investments may be presented as guaranteed or safe. No investment returns are guaranteed and there is always risk in any investment.
5. “Act now, call today” – Financial advisors may often use “…a false sense of urgency to imply investors have limited time to take advantage of an opportunity…”
For more information on these “pitches” and what you can do to help your parents avoid being taken advantage of, you can read the full Money Magazine article at http://money.cnn.com/2011/08/10/retirement/protecting_parents.moneymag/
If you have questions about investments losses suffered by yourself or your parents, The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at (312) 238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.