COUNCIL ON AGING - ORANGE COUNTY Financial loss prevention tips Invest wisely online and offline. Here are some important tips you should keep in mind when you are considering purchasing investment products and for protecting those investments once you have them n Never judge a person's trustworthiness by the sound of their voice n Take your time when making investment choices. Be careful of "act now" or "before it's too late" statement Council On Aging-Orange County | 714-479-0107 | www.coaoc.org n Say "no" to anybody who tries to pressure you or rush you into an investment. n Be wary of salespeople who prey upon your fears or promise returns that sound too good to be true n Always ask for a written explanation of any investment opportunity and then shop around and get a second opinion n Be wary of any financial adviser who tells you to leave everything in his or her care n Stay in charge of your money or enlist the help of a trusted third party to assist you. n Make checks payable to a company or financial institution, never an individual. n Retain and maintain account statements and confirmations you receive about your investment transaction n Document all conversations with financial advisers n Take immediate action if you detect a problem. Time is critical, so do not be afraid to complain n Don't let embarrassment or fear stop you from reporting financial exploitation or investment fraud . Excerpted from Money Smarts for Older Adults. For additional information visit consumerfinance.gov Answers Guide 2015 87 FINANCE & LEGAL Inappropriate or fraudulent annuity sales Variable annuities are often pitched to seniors through "free lunch" investment seminars. These products can be unsuitable for many retirees and are sometimes sold by salespersons who fail to disclose steep sales commissions and surrender charges that impose costly fees or penalties if you decide that you need your money before the maturity date. Be wary of organizations offering special programs for veterans. You can check a broker's background via the Financial Industry Regulatory Authority (FINRA) Broker Check at www.finra.org, or by calling the FINRA Broker Check Hotline at 1-800 289-9999. You may also contact the state securities office and Better Business Bureau.http://www.finra.org http://www.consumerfinance.gov http://www.coaoc.org