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Investor Protection for Seniors

More and more New Yorkers are handling their own investments hoping to earn higher returns. Three out of four people over 65 years of age receive at least 25 percent of their income from investments. With declining interest rates, many senior citizens are turning to stocks, mutual funds and other investments that are higher-yielding -- and also higher risk.

Unfortunately, that has made many senior citizens vulnerable to con men and fast-talking brokers who are far too eager to separate investors from their life savings.

What to watch for:

In order to protect yourself and your savings, follow these tips before investing:

• Be wary of unsolicited phone calls and letters;
  
  
• Always demand written information -- and read it carefully;
  
  
• Be suspicious of "insider information," "hot tips," or "rumors;"
  
  
• Never be afraid to ask questions or tell someone that you don't understand;
  
  
• Don't give in to high-pressure sales tactics;
  
  
• Don't believe promises of doubling or tripling your money in a short time;
  
  
• Deal only with established brokers;
  
  
• Check with the Attorney General's Bureau of Investor Protection for information about brokers;

When in doubt about an investment, don't make a commitment before you feel comfortable. It's better to lose an "opportunity" than to act hastily and lose the money you have worked so hard to save.

What to do:

The Attorney General is the state's principle regulator of securities dealers and brokers. In addition, the Attorney General must approve franchise offers and certain other types of investments.

Every licensed broker is required to register with the Attorney General's Office. In addition, the Attorney General keeps track of all disciplinary actions taken against brokers by other agencies, including the federal Securities and Exchange Commission.

Before you invest, do your homework. Contact the Attorney General's Office and your local Better Business Bureau. Read the fine print on contracts. And immediately report any suspicious or fraudulent activity to your local Attorney General's Office.

Source: Office of New York State Attorney General

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