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Watch out for investment profes-
sionals who prey on your fears. Con
artists know that many seniors worry
about the adequacy of their retirement
savings, especially if they are faced with
costly medical expenses. As a result,
fraudsters often pitch schemes offering
unrealistically high rates of return.
Take your time—don’t be rushed into
investment decisions. Just because
someone you know made money, or
claims to have made money, doesn’t
mean you will too. Be especially skep-
tical of investments that are pitched
as “once-in-a-lifetime” opportunities,
particularly when the promoter bases
the recommendation on “inside” or
confidential information. Remember
that a fraudster does not want you to
think too much about the investment
because you might figure out the scam.
Be wary of unsolicited offers. Be
especially careful if you receive an
unsolicited phone call or email about
a company—or see it praised on an
Internet bulletin board—but can find
no current financial information about
the company from other independent
sources. Many fraudsters use email
and Internet postings to tout thinly
traded stocks, in the hopes of creating
a buying frenzy that will push the share
price up so that they can sell their
shares. Once they dump their stock and
quit promoting the company, the share
price quickly falls. And be extra wary if
someone you don’t know recommends
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foreign or “off-shore” investments.
When you send your money abroad,
and something goes wrong, it’s more
difficult to find out what happened and
to locate your money.
Don’t lose sight of your investments.
Don’t rely on an investment profes-
sional who says “leave everything to
me.” Always monitor the activity on
your account and request regular state-
ments. You should never feel uncom-
fortable about questioning any trading
activity that you don’t understand.
Question why you cannot retrieve your
principal or cash out your profits. If
your investment professional stalls
when you request your principal or
profits, this may be because that person
has already pocketed your money. Don’t
be fooled by explanations as to why
your money is inaccessible or by sugges-
tions that you roll over your “profits”
into other investments.
Never be afraid to complain. If you
suspect fraud or a questionable practice
and the explanations that you receive
are not satisfactory, do not let embar-
rassment or concern that you will be
judged incapable of handling your
own affairs prevent you from filing a
complaint with the SEC, FINRA, or
your state securities regulator.
Where to Call for Help SEC: (800) 732-0330
To Find Your State Regulator: (202) 737-0900
FINRA Securities Helpline for Seniors: (844)
574-3577
www.himpowermagazine.com 31