Senior finance: Being wary

What one has to understand is that the retirement stage is the tough part of the life since senior citizens are compelled to meet their daily requirements and face rising prices for which they are to be prepared financially. The fact is that there is no free lunch in this world and making the wrong decisions would mean losing out thousands of dollars to fraudulent investment schemes of different types.

The truth

A survey conducted recently by NASAA has shown clearly that senior finance fraud tends to account for about 50% of complaints that has been received by the state securities regulators. But unfortunately, with time, this percentage is only rising, since the vulnerable retirees are being targeted by the scrupulous so called financial companies. To learn more about plans available in the near future and especially Medicare Part C 2017 plans you must do adequate research.

The financial industry has been littered with several slick schemes which results in seniors taking the bait and dreams being broken. There have been stories of seniors who have lost all their savings. Seniors are becoming soft targets and the medium used to scam them is the mail, internet, free ‘financial seminars’ and in-home visits that are customized specifically to huge groups of seniors.

Understanding the reasons

There are cited several reasons for seniors to fall victims to getting duped, which are as follows:

  • Trusting too much and being well mannered
  • Eager to have better ROI on senior finance investments
  • Believing in the salesperson to be cooperative, friendly, caring and helpful.
  • Getting impressed with those fancy titles and credentials

Such titles perhaps could easily serve the unscrupulous advisor or sales agent in gaining trust of the seniors that is regarded to be the very initial step to carry out a successful fraud. It has become extremely difficult for prospective investors, more specially senior citizens towards determining if a specific designation represents meaningful credential by agents or is a marketing device that is empty. According to the industry experts, financial predators have been using fear tactics for instilling fear inside the seniors of losing their money due to inflation and becoming burden to others in the family. Besides this, the scamsters are well aware of the isolation and loneliness of those people who are well into their retirement age and have concerns over their investments.

Hence, it becomes important for seniors to undertake a good amount of research, so that they come across the right financial company and agent, who can guide them to understand the correct investment schemes available in the market and to avail the same.

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