St. George Village Blog
Tag Archive: Money Management
Posted on July 8, 2013 by Stacy Anthony
If you’re ever invited to a free seminar that promises to teach you about investing or managing money in retirement, and that comes with a free meal, there may be a few facts you should digest first.
Research by the FINRA Investor Education Foundation found that 64 percent of Americans age 40 and older have been invited to so-called “free lunch” seminars. While a free meal or prize might be enticing, in many cases the goals of these seminars are to recruit new clients and sell products.
“Even when described as purely educational, free-meal seminars typically have one aim and that’s to sell you something,” said FINRA Foundation President Gerri Walsh. “That ‘something’ might be a book, a particular product or financial services. But just because someone buys you a meal doesn’t mean you have to swallow any pitch—that day or days down the road.”
Securities regulators such as FINRA conducted more than 100 examinations of free-meal seminars. In half the cases, invitations and advertisements contained exaggerated or misleading claims, and 12 percent of them appeared to involve fraud.
If you decide to attend a free-meal seminar, be cautious and informed:
• Watch out for conflicts of interest. Even if the people who host a seminar or speak at the event are industry experts, they might not be the ones actually paying for it. At times, insurance companies or mutual funds finance these seminars, expecting the speaker to drive sales of their products.
• Do your homework before the seminar. You can verify that the salesperson is licensed and the investment is registered at the Financial Industry Regulatory Authority’s website.
• Ask questions while you’re there. What are the risks of this investment? How much does it cost initially to purchase the investment? For what type of investor is this investment a good idea? For what type of investor is this investment a bad idea?
• Don’t buy anything or open an account on the spot. The seminar might be intended just to introduce you to the product, with a hard sell later. After the event, do some research on your own. Understand the risks. While the prospect of high rates of return might sound tempting, remember that there may be additional risks or costs associated with the product.
• Savvy investors refuse to be rushed. A good investment will be available tomorrow or next week or next month when you’re ready and understand where your money is going. Rarely, if ever, do you have to invest your money on the spot.
For resources that can help you avoid investment fraud, visit the FINRA Foundation’s website.
Posted on March 1, 2013 by Stacy Anthony
Older Americans should know that while financial abuse is believed to cost seniors an estimated $3 billion annually, you can help prevent it and protect yourself.
Signs To Watch For
• You, family, friends or your bank notice financial activity you don’t recall, that is not consistent with your financial history or that is beyond your means.
• Your caregiver or beneficiary refuses to use your funds for necessary care and treatment or is threatening to place you in a long-term care facility unless you give him or her control of your finances.
• It appears that food or medication has been manipulated or withheld so you become weak and compliant.
Steps You Can Take
• If you feel threatened and believe you are in immediate danger, contact law enforcement.
• Talk with family members, friends and trusted professionals to plan your financial future. If managing your daily finances is difficult, consider engaging a money manager.
• Talk with a lawyer about creating a durable power of attorney for asset management, a revocable or living will, trust and health care advance directives.
• Never send anyone personal information to collect a prize or reward.
• Don’t be pressured or intimidated into quick decisions by a salesperson or contractor.
• Don’t sign any documents you don’t completely understand without first talking it over with an attorney or a family member you trust.
• Never provide personal information (Social Security, credit card, ATM PIN number) over the phone unless you placed the call and know with whom you are speaking.
• Tear up or shred credit card receipts, bank statements, solicitations and financial records before disposing of them.
• If you hire someone to help you in your home, be sure that person has been properly screened, with criminal background checks completed.
• If you suspect you or someone you know is being exploited, call (800) 677-1116 to get connected with the state Adult Protective Services or other appropriate aging resource.
For more information on financial exploitation, you can request a free brochure from the Eldercare Locator, “Protect Your Pocketbook: Tips to Avoid Financial Exploitation.” Call (800) 677-1116; the brochure can also be downloaded at www.eldercare.gov. The Eldercare Locator is a public service of the U.S. Administration on Aging and is administered by the National Association of Area Agencies on Aging (n4a).