Senior citizens are being lured into riskier investments — and often outright scams — as carefully laid retirement plans have been scuttled by five years of low interest rates.
Government regulators and advocacy groups say unscrupulous dealers are taking advantage of a growing fear among seniors that they will run out of money in their final years of life. That’s in large part because many seniors have parked their cash in safe investments, such as government bonds, where returns have barely kept pace with inflation. As a result, their savings are stagnating as their life expectancy grows — and that is making many older Americans increasingly desperate.
“There’s just no way to get a higher interest rate without taking some sort of risk,” said Eleanor Blayney, CFP®, Consumer Advocate at the Certified Financial Planner Board of Standards. “And at the extreme, some of these higher interest rates aren’t really true.” Read more >
The Washington Post
Ylan Q. Mui
April 18, 2013