Protect Your Investments – Seven Tips
Posted on July 27, 2011 by bob in Financial
Joseph Borg
Every day our citizens are bombarded with negative news about a continuing national recession and debt problems. Also, interest rates on savings are at a historic low. Here are seven basic tips to help senior Alabamians make more informed investment decisions and protect themselves from securities fraud during turbulent economic times.
1. Check out the person touting the investment. Alabama law requires most securities and the people selling them to be registered. Do this BEFORE YOU INVEST.
2. Beware of high-pressure tactics. Say “no” to any person who presses you to make an immediate investment decision. Take time to do your own research and understand a financial product offer before you invest.
3. Don’t be a “courtesy victim.” Con artists will not hesitate to exploit the good manners of a potential victim. When a stranger asks for your money, you should proceed with the utmost caution. You are under no obligation to stay on the telephone with a stranger or allow them in your home. If you are lonely and in need of companionship, don’t make the mistake of seeking it from someone whose real interest may be to get their hands on your money.
4. Watch out for salespeople who prey on your fears. Recent news concerning long term recession and national debt can make you afraid of running out of money. Swindlers commonly pitch their schemes as a way to eliminate your financial fears for the future.
5. Monitor your investments. Insist on regular written reports/statements and look for signs of excessive or unauthorized trading of your accounts.
6. Report suspected investment fraud or financial abuse immediately. Despite any embarrassment or fear you may feel, immediately call the Alabama Securities Commission, Enforcement Division (contact information below).
7. Beware of “reload” scams. To recoup their losses, victims sometimes invest in another scheme (a “reload”) in which the con artist promises to make good the original loss and may offer new, higher returns. Often, the result is only more losses.
Joseph Borg is Director of the Alabama Securities Commission. The ASC promotes financial literacy through presentations, free information and access to financial literacy and education material. Call for your FREE “Safe & Wise Investing Kit”, 1-800-222-1253, or visit the website www.asc.alabama.gov.View personal finance and investor educational materials and read about those caught and punished for cheating Alabamians.
