Investing: Keep Up Your Guard
29881
Finance > Investing
Jun 20, 2007
voudrie12
Investing: Keep Up Your Guard
Do you like being taken advantage of? I sure don't. In fact, I hate it! Worse, it seems like it is happening more and more. Now, more than ever, it is buyer-beware. Read on for some specific examples and to learn how you can protect yourself. Trust is involved when we buy a company's products of services. Companies spend millions of dollars a year in advertising trying to gain our trust. Employees, especially salespeople, are trained in what to say to build our trust in them and their company. When I take the bait and find out that the product or service doesn't meet my expectations, I feel my trust has been violated. I've been taken advantage of just so the company could make another dollar. It used to be rare. Now it's common. Take AARP for example. Founded as the American Association for Retired Persons, it quickly became the largest defender of senior's rights. It is still one of the most powerful lobbying groups in Washington. Its members trust it to act in their best interest. That's why so many of them were surprised when AARP suddenly changed course and supported the Medicare Drug Bill. AARP even spent $7 million advertising their support! Members were stunned--only 18% of them supported it. What could have caused this trusted voice of seniors to stop acting on their behalf? I'm not going to judge motives, but isn't it interesting that AARP stands to make millions of dollars selling its new prescription drug insurance called MedicareRX? Hmmm. AARP receives more money from licensing the AARP name to products and services then it does from membership dues. They're becoming more of a marketing firm then a lobbying firm. Are their products truly in their member's best interest? Not always. AARP mutual funds are a perfect example. Managed by Scudder, not a single one has performed in the top 20% of its category. Those who invested because of the AARP name have forgone thousands and thousands of dollars of growth due to low returns--while AARP has pocketed tens of millions of dollars. The key point is that you shouldn't trust a product just because it has a familiar name associated with it. Do you homework and compare it to its competitors. We can be taken advantage of in other ways. I recently responded to an offer for a 'free credit report'. It was provided by one of the largest credit reporting companies in the world. Surely it could be trusted. Nope. Buried in the fine print is that fact that anyone who receives the 'free' credit report is automatically signed up for their credit monitoring service. Until you call and cancel, your credit card is billed each month. Since I used my debit card, I didn't notice the charge right away. The lesson? Be careful when signing up for 'free' offers, read all the fine print, and don't use your debit card for online purchases. Lastly, I recently bought an electronic book online as part of some research I was doing on Equity-Indexed Annuities. The sales pitch explained that 'shocking' truths about annuities would be revealed. It's easy to find people promoting annuities and I was looking for an opposing view. This seemed to be it. When I went to purchase it I learned that the information I was looking for wasn't included in the 'shocking truths' and that I had to upgrade to learn those secrets. The entire package cost $97, double what was initially advertised. Worse, the material ended up being a sales pitch FOR annuities! I read the terms and conditions. They sell your information to list brokers and insurance agents. One of the 'bonus' services was the ability to talk with a live person about your situation. In reality, you would be connected to an insurance salesperson and received biased advice. It shouldn't be this way. We shouldn't have to constantly keep our guard up to protect ourselves. But we do. Be careful who you trust--especially a financial salesperson. The people and companies that provide the products and services you use should repeatedly earn your trust. If not, they don't deserve your business.
Nationally-syndicated financial columnist and Certified Financial Planner Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He will answer your financial question FREE at http://www.guardingyourwealth.net/
send email to voudrie12
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
Providing for adequate health care is one of the top concerns for today's seniors. And yet, many find themselves coming up short when that need is for long term care. With costs skyrocketing and government purse strings tightening, planning for such care
Category:
Recent legislation in Congress may make it even more difficult for seniors to qualify for government-paid long-term care coverage. If you don't take action now, you may be setting you and your family up for a Long Term Nightmare!
Category:
A reader recently asked if his 401(k) could be rolled over, by his beneficiary, to a 'stretch' IRA after his death. Read on to discover an answer that will protect your beneficiaries from tens of thousands of dollars in unnecessary taxes and keep your gif
Category:
Millions of retirees expect to rely on Medicaid to cover the cost of their long-term care needs. If you or your parents have that expectation then you must read this article. You shouldn't rely on this program and by doing so you may end up becoming depen
Category:
If you've talked to a broker or agent about rolling over your retirement account, there's a good chance the advisor recommended you invest in a Variable Annuity. Don't do it! I believe the only reason a variable annuity is recommended for an IRA is so the
Category:
Rising interest rates are another reason to avoid Equity-Indexed Annuities. If you are retired or near retirement, don't let yourself be talked into purchasing an Equity-Indexed Annuity. If you do, it could easily be a decision you regret for many years t
Category:
Ned almost lost the farm that had been in his family for 8 generations! We've all heard that 'The Devil is in the details.' It is especially true when it comes to estate planning. Make sure you don't make the same mistake Ned did.
Category:
Every investor would like to increase their income without compromising their stability. Maybe that's why Equity Indexed Annuities (EIAs) have become so popular, because of their promise of providing a stable income stream.
Category:
Living Trusts have become very popular and are being heavily promoted to seniors. Should you Trust or not Trust? That is the question. Read on to learn some simple guidelines that will help you know whether a Living Trust may be right for you and how to g
Category:
Equity Indexed Annuities (EIAs) have become the hot product of late. I believe you can easily find other alternatives that will bring a better return, without locking up your money or levying hefty surrender penalties.
Category:
I believe that Equity Indexed Annuities and the sales practices used to sell them may well be the Next Big Investment Scandal you will hear about. You need to understand why and to think twice before you purchase one of these products.
Category:
While you're making your New Years' resolutions, don't forget to give your financial house an annual tune-up. As the old saying goes, an ounce of prevention is worth a pound of cure, and few adjustments now could save you thousands of dollars, not to ment
Category:
Getting a new mortgage? Watch Out! Mortgage brokers (even at banks) get paid on commission. As interest rates rise, they must become more creative to make a living. Many are honest, but there's plenty that won't blink an eye at taking advantage of uninfor
Category:
Doris from Minnesota is considering transferring her assets to her son so they won't be lost to Medicaid should she need assisted-living or nursing home care. Is that the right move? If so, what's the best way to do it? Read on to find out.
Category:
At some point you will need to make changes to your investment portfolio. Often, investors and their advisors make wholesale changes all at once. But that's not really in your best interest. Read on to find out how to successfully adjust your portfolio.
Category:
Everyone would love to retire early, but they also desire to be free from the fear of running out of money. Changing your attitude toward investing and the approach you take will help you accomplish both. Read on to see how you can retire years sooner and
Category:
Living wills have received a great deal of attention due to the recent Terry Schiavo situation. Because her end-of-life wishes were in dispute, family members battled each other in the courts over her treatment and care.
Category:
Q. Jeff, I want to ask your opinion regarding Health Savings Accounts. On April 1st, the company I work for is changing our current Blue Cross health insurance to Guardian Insurance set up as a HRA. I am single and currently have a $500 deductible. Under
Category:
Do you like being taken advantage of? I sure don't. In fact, I hate it! Worse, it seems like it is happening more and more. Now, more than ever, it is buyer-beware. Read on for some specific examples and to learn how you can protect yourself.
Category:
Equity-Linked Certificates of Deposit are a safer, low-cost alternative for those who must have an Equity-Indexed Annuity type of investment. These little-known investments allow you to participate in the growth of the market index while your principal is
Category:
Other links at Finance > Investing
Learn to evaluate the consequences of a merger and what it means for your investments
Category:
Saving for retirement is important for anyone who has a job. But if you are a home business owner, saving for retirement will take a little more effort on your part. Most employees are given a retirement plan in which they contribute to each pay period.
Category:
Over the years I have trained many traders and I always advise that they spend at least three months paper trading before they go live with real money. Now even though I advise this I have never had a student actually do it. They all give up on paper trad
Category:
The Exchange Traded Fund with the fifth highest trading volume is the iShares MSCI Japan Index (EWJ). This fund is averaging over 22 million shares a day trading volume. Why all the attention?
Category:
5. Forex: Online Trading Safety: Why Some Trading Experts Risk Their Own Money When Teaching This Impor
Remember this important online trading safety tip: The markets will not keep your money safe. Though this is a well known fact, many people find it quite hard to understand. They believe that, no matter what, the market and GOOD FOREX will ALWAYS COME BAC
Category:
Site Sponsor
Directory Statistics
Articles: 68214
Categories: 501
Yahoo Entertainment
