Pre-Retirees are vulnerable to fraudsters- Article

In an article written by Janet McFarland on March 1, 2012 a national study done by the BCSC (BC Securities Commission) brings to light that the most vulnerable group of Canadians to investment fraud are ‘pre-retirees’. This offers new insight that dismisses common thinking that the elderly are most vulnerable and brings awareness in the use of fear for people approaching retirement and who are afraid of running out of money. The increased daily volatility in the market has heightened both the apprehension of fund reserves for retirement and has further enabled con artists to “promise” exceptionally high returns which prays on the lack of financial aptitude of potential investors.

The article states two key points:

1. “The BCSC also found 43% of the people surveyed did not understand the idea that investments with higher rates of return had higher associated risks.”

 2. “The study concluded that people are more vulnerable to risky investments if they have an unrealistic expectation of the current rates of return.”

 To read the full article from The Globe and Mail please click on link below:

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Coleford Investment Management.