Older investors, especially those between the ages of about 50 to 64 facing a looming retirement, may be particularly vulnerable to investment fraud, scams, and Ponzi schemes. A con artist may try to specifically take advantage of the concerns facing older investors in the pre-retirement age range; it’s important that you always take the time to consider your financial goals and do your own research before you decide to invest in a new opportunity—regardless of age.
Why Target Pre-Retirees for Investment Fraud?
Here are a few of the reasons con artists often target pre-retirees:
Pre-retirees may be concerned about the financial strain of an upcoming retirement and be more likely to fall for a scam that promises substantial, short-term returns.
Pre-retirees are likely to have a more significant savings than younger investors, meaning they may have more funds available for investment.
Pre-retirees may be concerned about providing for their families in the long term and feel that the time to invest is running out.
Pre-retirees may be more trusting, especially if the con artist is a friend or acquaintance.
Con artists who prey on pre-retirees may try to pressure you to invest right away, “guarantee” high returns over a short period to prepare you for retirement, try to convince you to roll your retirement savings into a new investment, or prey on your financial fears about retirement.
Baby Boomers Are More Vulnerable to Broker Misconduct
Investment loss doesn’t have to be the result of a scam. Sometimes it is caused by broker misconduct. For example, you could lose money because of any of the following:
- Investment recommendations were unsuitable
- There was unauthorized trading in your account
- Broker breached his or her fiduciary duty to you
- Investment portfolio had a poor asset allocation
- Failure to execute an order on your behalf
There have also been cases of investors losing money because of inadequate supervision by the brokerage firm. Take NEXT Financial Group as an illustration. This company’s main clientele consists of retirees and baby boomers. In 2009, NEXT Financial Group was fined $1 million by FINRA for failing to properly supervise numerous client accounts and over 100 branch managers.
How to Get Help after You Have Lost Money in an Investment Scam
If you are a pre-retiree who has lost money in an investment scam, don’t wait until it’s too late to recover your losses. The experienced investment fraud attorneys with Meyer Wilson have more than 50 years of experience helping investment fraud victims recover their losses, and we would be happy to review your potential case in a completely free and confidential legal consultation.
Simply submit our online contact form to get started.