Face it. Everybody knows that we start to lose a bit of the old edge as we age, am I right?
Unfortunately, the crooks know it, too.
While I’m not thrilled with Wall Street’s elite in general, especially for their involvement in the avoidable 2008 financial crisis, most of the people I personally know in the financial services industry are Main Street types, decent, hardworking do-the-right-thing folks.
But the business has its share of crooks, too.
I know that sounds harsh, but why candy coat it?
The various regulators of the industry have been clear about the way registered representatives, investment advisors and insurance agents must deal with senior and elderly investors, which includes retired baby boomers.
In hopes of preventing financial exploitation of seniors, a serious and growing problem in the U.S., both FINRA, the Financial Industry Regulatory Authority, and the SEC, U.S. Securities and Exchange Commission, have issued guidelines for firm procedures and controls to which representatives and agents must adhere. These directives are age- and life stage-based, and firms must consistently watch their representatives, constantly monitoring their radar screens for the suitability of investment recommendations, communications that target older investors, and abusive, unscrupulous or fraudulent sales practices.
Go to this link on FINRA’s site, Senior Investors, to read more about this critically important topic.
Also, FINRA Securities Helpline for Seniors® can provide older investors with support and answers they seek regarding their transactions with their investment brokerage or bank investment brokerage representatives.
The toll free number is 844-57-HELPS (844-574-3577) and answers from 9:00 am to 5:00 pm ET, Monday through Friday.
For insurance and insured products, each state will have its own commission and guidelines, but here is a link to the National Association of Insurance Commissioners consumer alert regarding annuities.
If you’re an elder investor that is exploring changes in your investment portfolio, I highly recommend that you include an adult child or other younger adult in any meeting you schedule with your advisor or agent.
And of course, senior investors should consider the services of a trained money coach, a Certified Financial Planner or other trusted, licensed fiduciary.