“When there is blood in the water…the sharks will come!”
This isn’t a quote from ‘Shark Week’ on the Discovery Channel, it is an accurate summary of what is currently happening as financial firms are targeting a huge demographic that will continue to grow in our country. The baby boomer generation (born 1946 – 1964) has made a dramatic impact on our country throughout their lives and now they’re all entering or nearing retirement. Every single day there are 10,000 additional baby boomers turning 65! As they enter retirement and roll over their retirement accounts, they find themselves being targeted by various firms attempting to ‘feed’ on their hard-earned savings. This year FINRA (Financial Industry Regulatory Authority) has filed several ‘cease-and-desist’ orders against financial firms for these practices and also launched the FINRA Securities Helpline for Seniors at 844-57-HELPS or 844-574-3577 in an effort to address this growing issue.
FINRA reported that the hotline received several hundred calls as soon as it was opened from individuals ranging in age from 45 – 99. The regulatory agencies realize they need to get ahead of this crisis as it will only continue to grow with each passing year. This spring the SEC and FINRA released a report titled “National Senior Investor Initiative”, the study focused on 44 national firms, looking at the products and services that were sold by their representatives to senior investors. Below are the results based on the revenue generated and the frequency that they were purchased at the firms: Continue reading