3 Red Flags That Senior Citizens Should Look For When Investing

3 Red Flags That Senior Citizens Should Look For When Investing

The level of financial abuse and fraud directed at older adults is increasing and it worries everyone. While everyone who investing their money should do some research, consult widely, and not make quick decisions, seniors should be more careful when investing because they seem to be the main targets of fraud and abuse.

There are red flags that seniors should always watch for when they are considering investing their savings on anything. Some of these red flags have been discussed below.

  1. Sounding too good to be true

If the deal is too good, think twice. This old adage cannot be overemphasized when it comes to investing. If the deal sounds too good, then it is probably not true, and not legitimate. In most cases, older adults are usually attracted to investments with higher interest rates. It is important to note that whenever an investment has a high return or investment rate, then there is usually more risk. The truth is the high-interest investments opportunities are usually very shaky. You should always consult a trusted advisor if you want higher returns and you have higher risk appetite.

  1. You can’t understand what is being sold

While you don’t want to appear like you are not enlightened by asking so many questions, you should put your pride aside and seek clarifications on  Medicare Supplement plans 2020 https://www.2020medicaresupplementplans.com when it comes to complicated financial instruments. No one should expect you to know everything. So, whenever an advisor is trying to tell you to buy something you don’t really understand, it’s advisable that you ask them to explain it to you in simple terms until you understand what it is. If you can’t understand it, then just don’t buy it. That is how you become a smart investor.

  1. A free lunch

There is nothing in this world like a free breakfast or lunch. You have been around for more than 60 decades and you should at least know this. If a financial expert or advisor is inviting you to a free “educational” seminar and tells you that there will a free breakfast or lunch served, you should not expect it to end without you being pressed to buy something or invest your money on some something you don’t understand. Even if what is being sold at such event makes a lot of sense to you, you should always view it with skepticism simply because there can never be a free lunch.