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When dealing with a stockbroker or financial planner,
do not be swayed by offers of unrelated advice and
assistance that are merely efforts to develop a sense of
friendship or dependency. If you are lonely and in need
of companionship, don’t make the mistake of seeking it
from someone whose only real interest is to get his or her
hands on your money.
Always stay in charge of your money.
A stockbroker, financial planner or telemarketing con
artist who wants your money will be more than happy to
assure you that he or she can handle everything, thereby
relieving you of the need to watch over and protect your
nest egg.
Beware of any financial professional who suggests putting
your money into something you don’t understand or
who urges that you leave everything in his or her hands.
Constant vigilance is a necessary part of being an investor.
If you understand little about the world of investments,
take the time to educate yourself or involve a family
member or professional, such as your banker, before
trusting a stranger who wants you to turn over your
money and then sit back and wait for results.
Never judge a person’s integrity by how they
sound.
All too many older Americans who get wiped out by
con artists later explain that the swindler sounded like
such a nice man or woman. Successful con artists sound
extremely professional and have the ability to make even
the flimsiest investment deal sound as safe as putting
money in the bank.
Some swindlers combine professional-sounding sales
pitches with extremely polite manners, knowing that
many older Americans are likely to equate good manners
with personal integrity. The sound of a voice, particularly
on the phone, has no bearing on the soundness of an
investment opportunity.
Watch out for salespeople who prey on your fears.
Con artists know that many older Americans worry they
will either outlive their savings or see all their financial
resources vanish overnight as the result of a catastrophic
event such as a costly hospitalization.
It is common for swindlers and abusive salespeople to
pitch schemes as a way for older Americans to build up
their life savings to the point where such fears are no
longer necessary. Fear and greed can cloud your good
judgment and leave you in a much worse financial
posture. An investment that is right for you will make
sense because you understand it and feel comfortable
with the degree of risk involved.
Exercise particular caution if you are an older
woman with no experience handling money.
Ask a con artist to describe his ideal victim and you are
likely to hear this: “elderly widow.”
Sadly, many women who are now in their retirement
years often received little or no education in their youth
about how to handle money. Women of this generation
often relied on their husbands to handle most or all major
money decisions. Older women, particularly those who
have received windfall insurance payments in the wake
of their spouse’s death, are prime targets for con artists.
Any person who has little know-how about handling
money should always seek the advice of family members
or a disinterested professional before deciding what to do
with their savings.
Monitor your investments and ask tough
questions.
Too many older Americans not only trust unscrupulous
investment professionals and outright con artists to make
initial financial decisions for them, but compound their
error by failing to keep an eye on the progress of the
investment.
Insist on regular written and oral reports. Look for signs
of excessive or unauthorized trading of your funds. Do
not be swayed by assurances that such practices are
routine or in your best interests.
Do not permit a false sense of friendship or trust keep
you from demanding a routine statement of your
savings. When you suspect that something is amiss and
get unsatisfactory explanations, call your state securities
agency and make a complaint.
Look for trouble retrieving your principal or
cashing out profits.
Many older Americans have little ongoing need for
investment funds, while others require returns that
are paid out regularly in order to supplement limited
incomes.
If a stockholder, financial planner or other individual with
whom you have invested stalls when you want to pull
out your principal or profits, you may have uncovered
someone who wants to cheat you.
Unscrupulous investment promoters pocket the funds of
their victims and go to great lengths to explain why an
investor’s savings are not readily accessible. In many cases,
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