Investing later in life often means prioritizing capital preservation and steady income over aggressive growth. Unfortunately, many older investors find themselves placed in risky or unsuitable financial products that don’t align with their goals, risk tolerance or financial needs.
If you, or someone you love, was misled into inappropriate investments, this guide can walk you through what may have gone wrong and how to take steps toward resolution and recovery.
Common red flags
Promises of high returns with little to no risk are a classic tactic used to lure investors, especially seniors seeking security. A trustworthy advisor should explain how an investment works, including fees and risks, and how it fits into your broader financial picture. Any urgency to “act now” should be a signal to slow down and ask more questions. Real investment opportunities do not expire overnight.
What you can do
If you suspect you were sold an unsuitable investment, you’re not powerless. Here’s how to start reclaiming control:
- Review your investment statements: Look at your account activity. Are there transactions you don’t understand or high-risk products you didn’t agree to?
- Document everything: Keep records of all conversations, emails and documents related to your investments and interactions with your advisor.
- File a complaint: You can report your concerns to regulatory bodies like FINRA or the SEC. They have programs specifically for senior investors.
While it’s unfortunate to be taken advantage of, you can use this moment to better understand your rights and how to protect your assets moving forward.
Being placed in an inappropriate investment doesn’t just impact your finances; it can shake your confidence in your future. However, legal help is available, and recovery is possible. Through legal channels, you can protect your portfolio and your peace of mind.
