Fraudsters and scam artists often target older Americans. The U.S. Securities and Exchange Commission (SEC) issued an Investor Alert
from their Office of Investor Education and Advocacy to help seniors identify five “red flags” to look for when making a decision about an investment opportunity.
From the Investor Alert:
“Promises of High Returns with Little or No Risk. The promise of a high rate of return, with little or no risk, is a classic warning sign of investment fraud. Every investment carries some degree of risk, and the potential for greater returns generally comes with greater risk. Avoid putting money into “can’t miss” investment opportunities or those promising “guaranteed returns.” Remember – if it sounds too good to be true, it probably is.”
Consider reaching out to CPAs, financial advisors, attorneys, and other trusted individuals from their personal history to create a team of trusted advisors. Along with your knowledge and personal expertise, you and your advisors can help you find and review opportunities to make sound investment choices.