Today the New York Times ran an article warning people to be wary of individuals who claim to be experts in financial planning and senior advising. According to the article, thousands of individuals take short courses which award them official sounding titles such as “Certified Senior Adviser.” They then advertise their expertise and make massive profits off unsuspecting seniors by selling them annuity packages on behalf of major insurers.
Here are a few excerpts from the article:
Many of these titles can be earned in just a few days from for-profit businesses, and sound similar to established credentials, like certified financial planner, that require years of study, difficult tests and extensive background checks.
The prize for these insurers and sales agents is a piece of the $15 trillion held by Americans 65 and older, the largest pool of assets ever amassed by an aging population, according to the Government Accountability Office.
”The insurers are happy to turn a blind eye to what salesmen are doing, as long as they make a sale,” said Minnesota’s attorney general, Lori Swanson, who is suing several companies, including Allianz, contending their products are inappropriate.
“There are limitless combinations of words getting invented to convey an expertise in senior finances,” said the Massachusetts securities regulator, William F. Galvin. “Most of them seem designed to trick seniors into listening to swindlers.”
Do your research!
Older investors are wise to seek financial security, but must be wary of individuals trying to capitalize on their fears. In searching for an adviser, do a significant amount of research and thoroughly check references. Talk to friends and family and see if they can introduce you to someone they trust. Research credentials to determine if their “expert” status is actually based on extensive training.
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on Sunday, July 8th, 2007 at 9:25 pm
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