Sales Pitches Disguised As Investment Seminars

Retirees often realize themselves with considerable nest eggs, often lots of thousands of bucks, but little experience in the way to derive needed income from their cash piles. The alternatives seem limitless: mutual funds, dividend-paying stocks, municipal bonds, bond ladders, reverse mortgages... it's no wonder that inexperienced retirees turn to any supply of advice they can find.

Investment seminars are offered across North America, and they might seem sort of a good plan: free investment recommendation, with a free meal kicked in. Thousands of retirees attend such seminars every year and, to be fair, several organizations supply legitimate seminars that provide sound investing advice. A lot of often than not, however, a "seminar" is a thinly disguised sales pitch for investment products that are expensive, risky, and not appropriate for retirees who would like a safe way to squeeze income out of their savings.

Some seminars are by invite only, however many are open to the general public; they are advertised as seminars that supply objective recommendation on attaining a secure retirement, money coming up with, estate planning, and other broad topics of interest to retirees. Often, a way of urgency is implied in the advertising, with tag lines like "restricted seating available" or "call currently to reserve."

But, such seminars are typically staged by insurance or investment companies, and presented by brokers seeking sales commissions. Though most seminars do not build direct sales, attendees are encouraged to book follow-up meetings to open an account and invest in a chic product like an indexed annuity. The presenter, instead of providing objective and reasoned advice, can make exaggerated and misleading claims regarding the merchandise that she is selling, promising unrealistic returns and guarantees. Several promise annual returns of 12 percent or a lot of on an investment, which is simply unrealistic in these days's monetary environment.

Often, the investment product hawked by seminar presenters are unsuitable for most of the retirees attending; most retirees ought to invest conservatively, and several are risk averse to begin with. Additionally, the annuity product promoted at these seminars are illiquid: once purchased, they can't be converted back to money without paying substantial penalties. But, seminar presenters "advise" all attendees to buy the annuity or alternative product being hawked, no matter each individual's investment desires, aversion to risk, and liquidity needs. And some seminar practices are simply fraudulent.

The most common product promoted at such seminars -- the indexed annuity -- is usually not recommended by legitimate financial advisers. An indexed annuity may sound like a good deal: after investing a total of money, the investor is paid a come that is pegged to a market index, such as the Commonplace and Poor's 500 Index, which tracks five hundred commonly traded stocks. If the market goes up, your checks go up; if the market goes down, you're still paid a guaranteed minimum. However, there are many down sides. Your gains are often capped as well, sometimes only 7 percent. Stock dividends, an enormous up-side in an exceedingly volatile market, are usually not included in calculating gains. If you wish to withdraw your money, there is a considerable early withdrawal penalty, starting as high as fifteen percent of your investment; "early withdrawal" will be outlined as 10 to fifteen years. And, in fact, getting an indexed annuity perpetually involves paying a giant sales commission -- that is why brokers posing as "money advisers" are so needing to sell them to you.

The Securities and Exchange Commission has investigated the observe of disguised sales pitches and brought cases against companies engaged in fraudulent practice. Nevertheless, these seminars still be offered. If you've got a substantial nest egg and are unsure of the simplest manner to speculate it, bear in mind that there is no such thing as a free lunch. Rent a legitimate monetary advisor to examine your assets and your wants, and offer you real advice.

Robert Mccormack has been writing articles online for nearly 2 years now. Not only does this author specialize in Retirement for Seniors, Sales Pitches Disguised as Investment Seminars. You can also check out his latest website about:
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