by Bob Carlson, Investment U Research
Given the magnitude of the financial collapse and the impact on retirees' portfolios, these are high times for con artists.
In fact, you've probably noticed the uptick in pitches, heavy with rhetoric about Wall Street crooks, government bailouts, high inflation and currency collapses.
Each follows a predictable pattern. They exploit legitimate fears and a retiree's desire to recoup his losses. And they offer up a compelling yet ultimately disastrous investment opportunity.
No doubt, you've heard the idiom that a fool and his money are easily parted. Well, this month I want to do my best to make sure you don't learn such a reality the hard way… Caveat emptor!
The Five Areas of the Market Most Susceptible to Rip-Offs
To this end, I've identified five areas of the market most susceptible to rip-offs:
- Scam Alert #1: Home Equity
A wide range of fraudulent investments have been tied to home equity. Many pitchmen convince retirees to tap their home equity to invest in private investments such as promissory notes, partnerships, annuities and certificates of deposit at unconventional banks.
Here's the thing – these fraudulent investments are not registered with any government agency and don't provide full disclosure of all the important details.
My advice? Be especially wary of any pitch that encourages you to use home equity to invest. And always insist on investing in registered investments.
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