Learn How To Make Your Money Last in this AARP Minute

Learn How To Make Your Money Last in this AARP Minute

Jane Bryant Quinn gives finance tips. Jane Bryant Quinn gives finance tips.

July 7, 2016

AARP works to connect Americans from the big city to rural America. The organization has partnered with RFD-TV to present "AARP Live Minutes" each Thursday as part of their dedication to enhancing the quality of life for all as we age. 

In this AARP Live Minute, we hear from Jane Bryant Quinn, a financial expert, about making your money last and protecting yourself while investing for retirement.

Slippery salespeople lie. They cheat. You know they’re out there, and you believe you’re on your guard. Yet they get past our defenses, over and over. 

What’s their secret? Well, they manipulate our emotions—not only fear and greed but also our friendliness and desire to please. 

But certain lines used by salespeople should always set off alarm bells and put you on guard against the pitch that always follows. Here are five to watch out for. 
1. “People who made this investment are already earning 50 percent a year!” Or similarly they’ll say “always beats the market!” and “high fixed returns guaranteed!” No high-return investment is guaranteed. Nothing earns 50 percent a year or even 25 percent, over time. Bottom line: Never buy anything based on a promise of A thrilling, get-rich YIELD.

2. “You can trust me because we belong to the same church” (or temple, country club, bowling team, whatever). Con men don’t just call up strangers on the phone. They find victims among their own social group. When you lose money, they’ll beg for forgiveness by claiming they truly believed the investment was good (“I put my own mother in it!”). DON’T GIVE YOUR TRUST EASILY. IF you do get taken, don’t forgive, and warn your friends away.

3. “This investment is registered with the Securities and Exchange Commission!” That makes it sound safe. But the SEC DOES NOT vet investment products. YOU SHOULD assume that anyone making this statement hopes to mislead you.

4. “I specialize in conservative investments for seniors.” AN IMPORTANT STUDY OF FRAUD VICTIMS FOUND THAT, WHEN advisers make that claim, 46 percent of their listeners are more inclined to BELIEVE THEM.[Notes:CUT THE REST OF THE SENTENCE HERE]  In TRUTH, most of these SO-CALLED specialists probably took no more than a weekend course. Their true expertise lies in selling high-priced investments and annuities at free-lunch seminars.

5. “I’ll earn a commission on this sale.” Here’s a surprise. Studies show that brokers who declare their conflict of interest when touting bad investments are especially persuasive. THEY ARE subtly TELLING YOU that buying THIS INVESTMENT will help them out. That pressures you to cooperate.

On paper, these ploys sound obvious. In person, however, they can grab you. Or rather, grab your money. Stick with investments that have worked for you in the past, and walk away from  “safe, guaranteed, double-your-money” JUNK. }

For more financial tips you can read her monthly column "Financially Speaking" at AARP.com or her website, JaneBryantQuinn.com.

You can also watch more AARP Live Minutes HERE.

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