posted on January 19th 2017 in WorthPointe News with 0 Comments /

Fraud is a reality we must constantly guard ourselves against. There are those who can be considered trusted advisors and there are those who will always be unscrupulous. We know and understand that. Yet, by nature, many of us want to trust and open up to the friendly and seemingly knowledgeable folks we meet. It’s always important to exercise a reasonable amount of caution.

Seniors can be particularly susceptible to abuse. Many want to trust those who seem willing to provide assistance, and the proliferation of complex products can leave them open to fraud by those exploiting that complexity.

We have seen or heard too many heart-wrenching stories of outright fraud, or financial products that were sold to an individual that simply didn’t make sense, except for the dishonest person peddling their wares.

Never hesitate to reach out to us if you ever have any questions about our recommendations or why we believe they are best for your particular situation. Or for that matter, call us if you’ve come across something else and just don’t think you know enough about the product to ask the right questions. We are here to assist you in any way we can.

10 ways to beef up your defensive line

Reviewed by the Federal Citizen Information Center and the U.S. General Services Administration, the CERTIFIED FINANCIAL PLANNERS™ Board has put together the following list of steps, which you can implement immediately to alert you to potential fraud red flags and help protect you.

  1. Look beyond the designations on a business card. There are more than 170 known designations and certifications used by financial professionals. Some require rigorous testing. Others are little more than marketing tools, with no real education needed — much less an exam.
  2. If you don’t understand what is being said, don’t buy it. This one is pretty simple, but we can still fall victim to promises that are really too good to be true. We strive to keep an open line of communications with you. Always feel free to pick up the phone and call us if you come across something that sounds good on the surface but leaves you with an uneasy feeling.
  3. There’s no such thing as a free lunch. You may get a tasty meal, but be wary of the pressure to make an immediate buying decision. There’s nothing wrong with sleeping on it or getting a second opinion.
  4. Just because a so-called expert recommends it doesn’t mean it’s right for you. We have repeatedly emphasized that your specific situation and circumstances dictate the best course. Think about it; an aggressive stock fund might be just what’s needed for a 28-year-old who is saving for retirement, but that same fund might not work for someone who is 90 years old and needs income.
  5. It’s a tried and true axiom: if it sounds too good to be true, it’s probably not legitimate or safe. It’s human nature to want to find the magic bullet that easily solves a problem. But be very wary of promises that seem too good to be true.
  6. Don’t confuse familiarity with trust. We know plenty of good people in our community, but please do your homework and check anyone out before entrusting your finances to them.
  7. The final signoff should always be yours. Don’t leave spaces in account applications or contracts before signing them.
  8. Make sure the money others are making isn’t yours. We’ve all heard of the classic Ponzi scheme. Be very careful that you don’t throw your hard-earned money into a scam.
  9. Get the full story. What is the cost of the investment? Who will benefit from your decision? Is it you or the person making the recommendation?
  10. You have rights as a homeowner. Know them. Know your rights as a homeowner. If you are considering tapping equity via a reverse mortgage, for instance, let’s talk and discuss the benefits and any possible pitfalls.

 

 

 

Continue Reading

Other articles filed under WorthPointe News

The Morgan Report Q2 2021 Review – Invest in Coffee!

July 23, 2021 - On July 12, The Wall Street Journal reported coffee prices were soaring due to drought in Brazil, the world's biggest coffee producer. With the prospects of coffee demand exceeding supply, it would seem readily apparent that coffee prices will continue...
Continue Reading

WorthPointe on the Barron’s 2021 Top Advisor Rankings by State

May 4, 2021 - We are excited to once again be named to the Barron’s Top Advisor list—this time for 2021. The Barron’s list is ranked by state and you can find us under Christopher Van Slyke, our founder in Wyoming, although our team...
Continue Reading

The Morgan Report Q1 2021 Review – An Advocate for Your Values

April 19, 2021 - The last year has been full of challenges that negatively affected our lives. As individuals and families, we’ve had to adjust and be resilient—qualities that will not only help us be successful in life, but in investing as well. The...
Continue Reading

WorthPointe Named One of the 12 Best Financial Advisors in San Diego

January 28, 2021 - We are excited to announce that WorthPointe has been selected among the 12 Best Financial Advisors in San Diego for 2020-2021 by AdvisoryHQ. We believe these types of awards are such a testament to the quality support our advisors bring...
Continue Reading

The Morgan Report Q4 2020 Review – Lessons Learned

January 25, 2021 - 2020. Whew! I’m sure we’re all glad that’s over with, but as they say, beware what you ask for. Thankfully, my clients have stayed healthy and have mostly relegated to focusing on other areas of their lives like work, family,...
Continue Reading

Return to Blog Home