FINRA Senior Hotline Provides Lessons for Investors
Since its launch in April of last year, the FINRA Securities Helpline for Seniors™ has helped a number of investors. Many of the fielded calls concern common scams that seniors often experience such as bogus lottery winnings, tax alerts, and binary options. While seniors are not the only ones on the receiving end of these potential scams, they are often considered more vulnerable. This is why the hotline was made. Its intention was to help seniors recognize the warning signs of fraudulent schemes.
The hotline has helped a number of seniors be prepared for various tactics used by fraudsters. It has provided certain tips that can be used by not only seniors, but all interested investors. Our securities fraud attorneys at Meyer Wilson break down some of the most helpful tips below.
Don’t Follow Popular Investments
Just because everyone is investing in something doesn’t mean you have to do the same. Your investments should be tailored to your portfolio. Remember that other investors are often looking for the greatest return possible. This means that they may also be taking greater risks. Allow your investment decisions to be based on your own study and your own factors, not what everyone else is doing.
Keep Your Documents in Line
Make sure you are keeping everything up to date. Your investments, statements, and other important matters should be watched carefully to track any discrepancies or odd behavior. Anything that seems out of place could raise a potential red flag regarding your investments.
Keep Your Portfolio Diverse
You don’t want to keep your entire investment in just one sector. Spreading out your portfolio can help you protect your assets. This includes any mutual fund investments and your retirement fund. You may also look to invest in multiple asset classes including bonds, stocks, and cash.
Pay Attention to the Dollar-Cost Average
Pay close attention and take advantage of the ever-changing market through dollar-cost averaging. In order to manage the risk of your investment, it may be beneficial to invest over a long period of time. This would allow you to buy more at lower costs.