Are You Likely To Be Victimized By Retirement Savings Schemes?
Thousands of old people are losing their retirement money to con artists. This happens every year and based on a survey, roughly $3 billion each year are lost by the elderly people in fake investments that promise high returns.
Although researchers believe that the tricksters of retirees have not increased, these schemes are common now than in the previous years. There are more individuals who are currently in their retirement than ever before which make them a bigger target for con artists and criminals.
Company-funded pensions are lesser now that makes people more susceptible to these crimes. Elderly people are the one managing their own retirement money. Since they do not have sufficient financial knowledge, they are most likely to make mistakes. Eventually, they will make the wrong choices and get into questionable investments.
Insufficient saving is another factor
Studies have confirmed that Americans are not fully prepared to handle their retirement. Based on the study by Social Security Administration, only two out of three Americans depend on their Social Security checks. Since they are in a dire situation, they are looking for investments that will give them higher returns in order to supplement their budget.
Since they have limited information about how to make money grow and how it works, they fall as easy prey to fake investment opportunities.
Types of people that present these questionable investments
Based on studies made, the con artists usually approach their victims in skillful ways. Some usually move into the neighborhood and joins various organizations within the community. Once he is able to get the trust of the members, he begins to prey on them one by one. After some time, he will start to offer investment opportunities.
How not to fall victim to fake investments
1. Check if they have a license: Simply go to FINRA.org and check if the person has a valid license. It is a requirement of The Financial Industry Regulatory Authority that every individual that provides investment advice should have industry affiliation and a license. Do not give your savings to someone without confirming his license.
2. Set your limitations: If you have difficulty understanding the investment advice given to you or if you are uncomfortable with it, simply decline the offer. Get the assistance of a family member or trusted friend in making big financial decisions.
3. Don't put all your money in one investment: Do not let one person handle your finances. In case problem arises, you still have control on your other investments or retirement fund.