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Low interest rates are pushing folks towards crooked financial advisers.

http://www.washingtonpost.com/business/economy/low-interest-...

Senior citizens are being lured into riskier investments — and often outright scams — as carefully laid retirement plans have been scuttled by five years of low interest rates.

Government regulators and advocacy groups say unscrupulous dealers are taking advantage of a growing fear among seniors that they will run out of money in their final years of life. That’s in large part because many seniors have parked their cash in safe investments, such as government bonds, where returns have barely kept pace with inflation. As a result, their savings are stagnating as their life expectancy grows — and that is making many older Americans increasingly desperate.

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intercst
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What is the old says? "A fool and his money are soon parted." AARP gives courses on just this subject. There are many things to read on this subject. I do not understand, with the educational levels of so many of the Baby-Boomers, and my generation (older, but wiser) why so many seniors are being scammed.

I think I will volunteer to give talks on the subject here in Columbia, SC.

Donna
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I've been on a wild ride the last five years but I've always been glad I didn't buy into the "put 60 or 70% in bonds at your age" advice. Even with 30% in fixed income ivestments I'm feeling the pinch of low interest rates. But my total portfolio has recovered even though I've been withdrawing from it for 13 years. It should support me for many more decades. Still a believer in equity along with a good cash reserve so I don't have to sell into a falling market.
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I don't think this is really new. Financial advisers have always targeted their sales pitches at the unhappy investor. Give me a try. I can do better.

Sadly, low interest rates squeeze the fixed income investor, and they are reluctant to invest in stocks. So will they go for the high risk high yield investment or the annuity with the attractive no loss guarantee?

Sheep to be shorn.

Let's hope the honest advisers do well. Conservative seniors who are afraid of equities have some real problems.

We have just been through this discussion on the Dividend Growth board. The concerns are real.
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AARP should be ashamed, however, for pushing those life insurance plans they always have in the magazine. At my age, certainly, it makes NO sense to buy any. The $50K deal would cost me over $500/month, as I recall. Who in his right mind would do that?

Actuaries do their jobs, I know, so....

Better to keep money in the IRA or wherever for final costs.

Vermonter
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