Posts belonging to Category Insurance Products

Old Age Is Golden For Scam Artists


The number of financial scams targeting seniors is dramatically increasing according to a survey conducted by the non-profit Investor Protection Trust. “Swindles targeting older Americans are a bigger problem today than ever before,” Don Blandin, president and chief executive of Investor Protection Trust, was quoted as saying (See “Survey reveals alarming rise in financial abuse […]

Elder Financial Abuse Reaching Crisis Levels


Elder financial abuse is an “epidemic” and likely to become much worse given that 77 million baby boomers are entering their so-called “retirement” years (See “Golden years? Financial elder-abuse now epidemic,” Andrew Osterland, InvestmentNews). Between 500,000 and 5 million elders are abused, neglected or exploited each year, and the abuse is often unreported. “Elders can […]

How to Avoid a Financial Product Scam


U.S. News & World Report has posted an article to help investors deal with the constant bombardment of unsolicited sales pitches and investment advice, which could be great, but is more likely substandard, and may be deadly. The article by David Ning, “7 Ways to Avoid Financial Product Scams,” purports to present “seven ways to […]

Selling Unsuitable Products To Seniors Is Not Only Wrong, It Can Land You In Jail


The Wall Street Journal reported that a California insurance agent, who sold an equity indexed annuity to an 83-year old woman with dementia, has been convicted of felony theft and ordered to serve 90 days in jail. Glenn Neasham, who once enjoyed an annual income of $500,000 from selling such products, now seeks donations to […]

Some Red Flags of Financial Fraud


While fraudsters are with us always, they are especially active in times like these when extremely low interest rates and stock market volatility have made conventional stock and bond investments unattractive and have given rise to a multitude of alternative investments, some of which may be fraudulent. To help combat this, the Certified Financial Planner […]

Securities Regulator Alerts the Public About Dangerous Investments and Investment Strategies


The Financial Industry Regulatory Authority (FINRA) recently issued a report outlining is its regulatory and examination priorities for 2012. The securities industry regulator is focusing on conduct and products meant to beat the market that are unsuitable investments for many investors.

Some Warning Signs of Elder Fraud


The Wall Street Journal has reported that financial scams against the elderly are becoming so commonplace that the National Council on Aging calls them the “crime of the 21st century” (“Scams to Watch Out For,” WSJ). It describes investment scams against baby boomers (those over age 50) as being “rampant.” (“Boomers Wearing Bull’s-Eyes,” WSJ, Kelly […]

MONEY Magazine – Variable Annuities Aren’t Worth the Cost


Variable annuities are complex financial products designed to transfer the risk of market loss from the investor to an insurance company. Assuming the investor is risk averse (after 2008, who isn’t?), the question is, is it a good deal? The answer, according to MONEY Magazine and most advisers that do not sell variable annuities for […]

AARP Article Urges Seniors to be Vigilant in Watching Out for Financial Scams


Preparing for retirement should include preparing for the risk of diminished mental capacity, according to noted financial writer Jane Bryant Quinn (“Losing Your Grip?”). It is an unpleasant fact of life that, as we age, we become less competent to make financial decisions. A 2009 study on financial decision-making found that this ability peaks at […]

Wall Street Pays to Play


Financial industry lobbyists know that money is the key that opens doors on Capitol Hill. Trade groups representing the insurance, securities brokerage and financial advisor industries are lobbying and donating huge amounts of money in an effort to buy hearings and sway votes on legislation and rulemaking they deem important to their interests, according to […]