Who Can Seniors Trust For Financial Advice?

December 05th, 2008 | Category: Topics for Seniors

The state of Massachusetts is engaging in an interesting exercise, trying to determine who actually is qualified to represent themselves as an authority in financial matters of interest to seniors.

The state Securities Division has passed a final rule which says that not everyone can claim to be a senior affairs guru.

“Using a purported credential or professional designation that indicates or implies that a broker-dealer agent has special certification or training in advising or servicing senior investors, unless such credential or professional designation has been accredited by an accreditation organization recognized by the Secretary by rule or order.”

Translation: You actually have to meet positive standards to claim professional status.

The state has published a 32-page document which looks at various certificate claims. Most importantly, the paper explains how bogus authority figures first try to evolve a good relationship with seniors — and soon after, of course, sell something.

“misleading use of senior designations is part of a larger pattern of senior abuse through sophisticated and misleading marketing campaigns geared towards senior citizens. These campaigns often include a turnkey approach involving free meals and seminars where a person who is primarily an annuity and insurance salesman presents himself to potential senior clients

as an objective, knowledgeable and unbiased advisor who has been certified as having expertise in senior issues and senior financial issues. After the seminar, the salesman typically holds a series of pre-structured, scripted meetings with the clients where no product sale is attempted at first. Instead, the salesman uses the first couple of meetings to obtain an understanding of the targets’
finances and to gain their trust as an advisor. next, after trust is established, the ‘advice’ provided to the target is nearly always to sell their assets in order to buy high-commission annuities and insurance products-despite the fact that such annuities are often unsuitable to the person’s age, tax situation and financial circumstances.”

While the paper does not address reverse mortgages directly, it does discuss investments which are sometimes funded with the money gained from a reverse mortgage.

There’s more, it’s readable and should be read by those who want to protect their income and assets.

For the complete paper, press here. additionally, the state has a good question-and-answer feature online.

Other states, of course, would be well-advised to consider the steps being taken to protect seniors in Massachusetts for their jurisdictions.

Orginal post by Peter G. Miller

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