Protecting Your Retirement Money
By Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy
You have saved and invested wisely over the years and planned for your retirement. Unfortunately, scammers know that all too well ‒ making retirees a target of fraud. Learning how to protect yourself against fraud can make a huge difference in how you live your life in your retirement years.
The SEC’s Investor.gov website has free resources on how you can better protect your hard-earned retirement money against fraud.
Our “Never Stop Learning” public service campaign features informational videos about protecting your retirement money, spotting the red flags of fraud, designating trusted contacts, and providing information for caregivers. The campaign also provides resource pages that highlight even more information to help you protect your nest egg.
Understanding the tactics and types of scams can help protect you from fraud. Watch our videos, which feature a fictional online investment program called “HoweyTrade,” to learn how to recognize and avoid fraud.
Below are 4 quick tips and links to other materials to help you better protect yourself against fraud:
- Conduct a Background Check. Use the SEC’s free Check Out Your Investment Professional search tool at Investor.gov to learn about an investment professional’s background, registration status, and more. Working with a registered investment professional is a great first step toward protecting your money.
- Ask Questions and Verify the Answers. Before making any investment decisions, do your own research and only invest in opportunities that you fully understand. The SEC’s EDGAR database provides free access to a public company’s financial information and operations to allow you to review the filings the company makes with the SEC. The EDGAR database also provides information about mutual funds and exchange-traded funds (ETFs).
- Know the Red Flags of Fraud. Fraudsters know many retirees worry about having enough money in retirement and may prey on that fear. If an investment opportunity sounds too good to be true, it probably is. Be skeptical of so-called “once-in-a-lifetime” opportunities, promises of great wealth, high guaranteed returns, and pressure to act right away. Never make decisions based on a fear of missing out.
- Don’t Answer! Hang Up! Delete! Another red flag of fraud is getting an unsolicited phone call, text, or email from someone asking you for money. Fraudsters often impersonate organizations or individuals to lure people into scams. They may impersonate government agencies or employees, or legitimate investment professionals. Often, these impersonation schemes involve threats and pressure to take immediate action. Don’t answer phone calls or open any texts or email messages from any number or person you don’t recognize. If you do, hang up or delete the message right away.
Learning how to invest safely and protect yourself against fraud can help you keep the money you worked so hard for – and live the life you want in retirement. To receive articles from the Securities and Exchange Commission, you can either subscribe or find our latest article on the Director’s Take spotlight page.
Please share this important information with those who may need it.
This article is provided in the author’s official capacity as the Commission’s Director of the Office of Investor Education and Advocacy but does not necessarily reflect the views of the Commission, the Commissioners, or other members of the staff.
