Lifetime income planning is an important part of financial planning, but it can be difficult to understand. There are a lot of different products and options available, and it can be hard to know which ones are right for you. It’s important to do your research and work with a financial advisor you trust to make sure you’re getting the best possible advice.
There are also a lot of scams out there that target people who are trying to plan for their retirement. Bill Schantz will now list down some of the most common scams to watch out for:
Identifying Markers to Look Out for per Bill Schantz
Promises of Guaranteed Income
According to Bill Schantz, you need to be careful of anyone who promises you a guaranteed income from their product or investment. There is no such thing as a guaranteed investment, and anyone who tells you otherwise is likely trying to scam you. You will always be taking some risk when you invest, and there is no guaranteed way to make money.
High-Pressure Sales Tactics
Some scams involve high-pressure sales tactics to get you to buy a product before you have time to think about it. They may try to rush you into a decision or tell you that the offer is only good for a limited time. It’s important to take your time when making any financial decision, and you should never feel pressured into buying something.
Promises of High Returns with Low Risk
Another common scam is promising high returns on investments with low risk. As per Bill Schantz, this is simply not possible. All investments come with some risk, and the higher the potential return, the higher the risk. Anyone who tells you otherwise is not being truthful. You should be especially wary of investment opportunities that sound too good to be true. Do your research and talk to a financial advisor before making any critical decision.
Be careful of anyone who tries to sell you a complex financial product that they don’t take the time to explain in plain terms. If you don’t understand how a product works, it’s probably not a good investment for you.
This is a common technique to use complicated terms and jargon to make a product sound more impressive than it actually is. If you don’t understand what you’re buying, ask for a simpler explanation or walk away from the deal.
Be sure to work with a licensed financial advisor who is held to high ethical standards. There are a lot of scam artists out there posing as financial advisors, so it’s important to do your research and make sure you’re working with someone who is reputable.
If you’re ever unsure about a financial product or investment, Bill Schantz recommends talking to a trusted financial advisor before making any decisions. If something sounds too good to be true, it probably is. Be careful out there and don’t let yourself be scammed!