Financial Scams Rise as Waves of Baby Boomers Are Reaching Retirement – Blue Ocean Portfolios & The Financial Coach Bryan Binkholder Advise Consumers To Beware
St. Louis, Missouri (PRWEB) August 31, 2011
This year, the very first of the baby boomers reached retirement age. Topics of conversation have turned from water cooler gossip to investment strategies and retirement planning comparisons.
There are currently over 77 million baby boomers, –that’s more than a quarter of the United States population, and for the next 18 years between 7,000 and 10,000 boomers will celebrate their 65th birthday every single day.
With this tidal wave of retirees, the vultures are not far behind. According to Blue Ocean Portfolios and The Financial Coach, seniors have long been prime targets for fraudulent investment scams, sales pitches, Ponzi schemes, and dead end deals. The number of complaints they hear in their offices is rising, and they are determined to do something about it.
What Are the Problems?
Outright criminal schemes aren’t the only problem.”Retirees, and those nearing retirement age, have different risk tolerance and financial needs than those in their younger years,” explains financial expert, Jim Winkelmann of Blue Ocean Portfolios, “Seniors often don’t have the ability to recoup after making an investment mistake or being led to purchase inappropriate products that lock up their cash for extended periods.These products include annuities and long term bonds.One unwise investment, pushed upon a trusting retiree, and their financial future can be wiped out.”
What Else is at Stake?
According to Cerulli Associates estimates, baby boomers currently have over $ 8 trillion dollars in investable assets, and stand to inherit a minimum of $ 7 trillion more from their parents.
This might explain the rise of estate planning and investment seminars, which are held nightly in every major city across the nation. They invite seniors out, enticing them with a nice meal and a free financial analysis. “What they’re really trying to do,” says Bryan Binkholder, also known as The Financial Coach, “is put these people in one of the products they are selling. Basically, these people are nothing more than financial salespeople hiding under the title of ‘financial advisor. If they can get trusting seniors to invest in the products they are pushing, they earn a hefty commission. Because they are not registered investment advisors, and not held to a fiduciary standard, and what they are doing is perfectly legal. We’ve also seen some cases where they are registered Investment advisors but are steering all their prospects into fixed indexed annuities which fall into the insurance realm and are outside of the fiduciary rules.”
How Can the New Baby Boomers Protect Themselves From Poor Investment Advice?
Arthur Levitt, head of the United States Securities and Exchange Commission (SEC) advises, “If you have $ 50,000 or more to invest, fire your broker and hire an independent registered investment advisor.”
Independent registered investment advisors are held to a fiduciary standard, which means, they must place the financial interests of the client ahead of their own.
Bryan Binkholder further reveals, “RIAs who work on a fee-only structure should be very open and clear about their charges. Conflicts of interest arise when financial advisors operating on commission are turned loose to give financial advice about retirement planning and investment strategies. Balanced information from someone who isn’t pushing a product is key.”
In order to further assist the baby boomer looking for investment strategies and retirement information, Bryan Binkholder now offers an audio series that fully exposes this and many other investment schemes to beware of. 7 Deadly Traps of Investing and 6 Pitfalls of Retirement Planning are free of charge and filled with well grounded information designed to help both the new and seasoned investor recognize the scams, conflicts of interest, and risky investment strategies to avoid.
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