Wednesday, June 16, 2010, PM | Leave Comment
The Investor Protection Trust (IPT) is a nonprofit organization devoted to investor education. It does financial surveys and on June 15, 2010 released the results of the national “IPT Elder Investor Fraud Survey”.
More than 7.3 million folks over the age of 65 have been conned. They have been taken advantage of in their personal finances. The scums used inappropriate investments, high fees or just plain fraud.
Most folks that are near retirement or already living in retirement have been living in fear and uncertainty in their financial life. It’s very difficult as it is to live on Social Security and income from retirement accounts but when decent folks who have worked hard all their lives are scammed out of their retirement money, it gets to be extremely heart breaking.
The average 401(k) account balance as of March 31 was $66,900, according to Boston-based Fidelity Investments, which has 11 million participants. The average monthly Social Security benefit as of April was $1,067.
According to the survey, the medium of communication between the scums and our decent older and wiser folks is phone calls or mailers asking for money.
Lack of Basic Investment Knowledge
About 45 percent of respondents age 65 and over got at least two out of four questions wrong about basic investment knowledge. They said that an investment registered with the Securities and Exchange Commission or state securities regulators means it has been reviewed to make sure it’s safe. Also, they were under the impression that a very high rate of return is only okay as long as the investment is guaranteed or bonded.
Registered with Federal agency or state authority does not mean that they will not scam investors. That has proven to be wrong repeatedly over the years, especially in a recessionary economy.
In a Nutshell
Find a good financial adviser. Do research on your own.