Retirement Rip-Offs Video

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Retirement Rip-Offs

Kevin McCormally: I am Kevin McCormally of Kiplinger's here. I am here with Kim Lankford, a contributing Editor for Kiplinger's Personal Finance Magazine, to talk about financial scams and seniors. Kim, there were trillions of dollars in retirement accounts and I understand this is attracting a lot of attention, unfortunately including some attention of scam artist. What's going on? Kim Lankford: Well exactly, everyone wants a piece of that action and scam artists actually have been very busy in the past few years. The federal regulators have had about a 100 cases involving seniors just over the past few years. Kevin McCormally: Well, what's going on? Kim Lankford: Well, there are generally three categories; one is unrealistic investment insurance, also Ponzi schemes and unsuitable annuity sales. Kevin McCormally: Okay, give me an example of unrealistic investment returns. Kim Lankford: Well, many times a broker will come in, have a free lunch seminar, for example, and offer retirees or people who are about to retire, say, I can get you 12% returns on your money and you can withdraw 9% per year. They find out that that's so much better than everyone else's offering and they think that's a great deal. Nobody can offer those type of guarantee. So, you really need to stay away from that. Kevin McCormally: And Ponzi schemes are back? Kim Lankford: Ponzi schemes are back. It's the old style scam where they are taking your money and you start to get some money for a while but that's actually coming from other investors' funds and eventually, the money all disappears and someone is left holding the bag. Kevin McCormally: And what about unsuitable annuities? Kim Lankford: Well, that's something that's been growing a lot in the past few years. Some annuities, immediate annuities, can be good for retirees, can provide them with lifetime income but deferred annuities can be absolutely wrong for some retirees if they need their money right away. Kevin McCormally: Why is that? Kim Lankford: Some of these deferred annuities charges surrender charge of about 7-10% per year, if you access your money within the first seven to ten years. Some of the seniors who need their money right away and they are having these huge surrender charges, they have no idea when they first buy it. Kevin McCormally: Okay, how do you protect yourself? Kim Lankford: If you are dealing with a broker, check out the broker's record at www.finra.org has a broker check tool. That's the federal regulators and you can check out if there has been disciplinary actions. For annuity sales people, check them out with your State Insurance Department. Also, when you are meeting with them, take a lot of notes. Sometimes just taking all of these notes and asking all of these questions will dissuade from trying to sale you some of these things. Kevin McCormally: Get everything you can in writing. Kim Lankford: Exactly. Sometimes that can hold them off to begin with but if not and if you have to go to arbitration later on, that can be very important evidence. Kevin McCormally: Thanks, Kim. Great advice!

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Cons, Scams, and Rip Offs - How to Avoid Them Whil

If you are going to travel for long time then you are going to get ripped off, no ifs, ands or buts about it. It is just a question of time. Typically it will happen the moment you land when you get into your first taxi.

http://www.articlesbase.com/travel-tips-articles/cons-scams-and-rip-offs-how-to-avoid-them-while-travelling-432482.html/9461024403

Kevin McCormally: I am Kevin McCormally of Kiplinger's here. I am here with Kim Lankford, a contributing Editor for Kiplinger's Personal Finance Magazine, to talk about financial scams and seniors. Kim, there were trillions of dollars in retirement accounts and I understand this is attracting a lot of attention, unfortunately including some attention of scam artist. What's going on?

Kim Lankford: Well exactly, everyone wants a piece of that action and scam artists actually have been very busy in the past few years. The federal regulators have had about a 100 cases involving seniors just over the past few years.

Kevin McCormally: Well, what's going on?

Kim Lankford: Well, there are generally three categories; one is unrealistic investment insurance, also Ponzi schemes and unsuitable annuity sales.

Kevin McCormally: Okay, give me an example of unrealistic investment returns.

Kim Lankford: Well, many times a broker will come in, have a free lunch seminar, for example, and offer retirees or people who are about to retire, say, I can get you 12% returns on your money and you can withdraw 9% per year. They find out that that's so much better than everyone else's offering and they think that's a great deal. Nobody can offer those type of guarantee. So, you really need to stay away from that.

Kevin McCormally: And Ponzi schemes are back?

Kim Lankford: Ponzi schemes are back. It's the old style scam where they are taking your money and you start to get some money for a while but that's actually coming from other investors' funds and eventually, the money all disappears and someone is left holding the bag.

Kevin McCormally: And what about unsuitable annuities?

Kim Lankford: Well, that's something that's been growing a lot in the past few years. Some annuities, immediate annuities, can be good for retirees, can provide them with lifetime income but deferred annuities can be absolutely wrong for some retirees if they need their money right away.

Kevin McCormally: Why is that?

Kim Lankford: Some of these deferred annuities charges surrender charge of about 7-10% per year, if you access your money within the first seven to ten years. Some of the seniors who need their money right away and they are having these huge surrender charges, they have no idea when they first buy it.

Kevin McCormally: Okay, how do you protect yourself?

Kim Lankford: If you are dealing with a broker, check out the broker's record at www.finra.org has a broker check tool. That's the federal regulators and you can check out if there has been disciplinary actions. For annuity sales people, check them out with your State Insurance Department. Also, when you are meeting with them, take a lot of notes. Sometimes just taking all of these notes and asking all of these questions will dissuade from trying to sale you some of these things.

Kevin McCormally: Get everything you can in writing.

Kim Lankford: Exactly. Sometimes that can hold them off to begin with but if not and if you have to go to arbitration later on, that can be very important evidence.

Kevin McCormally: Thanks, Kim. Great advice!

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