5 Warning Signs a Retirement Seminar Is a High-Pressure Sales Trap

At some point, you may find yourself sitting through a retirement seminar. Your employer might arrange one, or you might stumble upon one through your local community center.

Some of these seminars can be helpful. But sometimes, they’re run by unscrupulous salespeople whose goal is to take your money and give you an investment product that’s not suitable for you in return. So it’s important to be able to spot the red flags. Here are a few to be on the lookout for.

1. There’s a lot of scary language

Pushy salespeople tend to use fear-based language to convince people to buy their products. If you’re being told things like “your retirement is on the line” and “you’re going to run out of money” without the person leading the seminar knowing your financial situation, consider it a bad sign.

Chances are, that person is just trying to scare you into buying a product that may or may not be right for you. So remember, if a salesperson doesn’t know the details of your financial life, they’re not in a position to make threats. And even a financial professional who does know those details should not be using that sort of language.

2. There’s only one specific product being pushed

An honest financial professional might recommend a number of different investment products that are suitable for you. But if you’re at a seminar where only one product is being pushed, there’s a good chance you’re at risk of falling into a trap.

It’s common for salespeople to only peddle their own products. But if you’re only presented with a single choice, it’s hard to compare your options and make a sound decision.

3. The information is fuzzy

It’s a bad idea to invest your money in a product or asset you don’t understand. If that’s the case, then you definitely want to say no to whatever is being pushed.

There are plenty of suitable retirement investments that are quite easy to understand. Buying ETFs, for example, means owning a bucket of stocks. Buying bonds means loaning an entity money in exchange for interest payments and having your principal returned eventually. If a financial product is too complex for you to grasp, say no to it.

4. You’re not sure what fees you’ll incur

Certain financial products come with fees. But it’s important to understand exactly what fees you’re taking on.

With an annuity, for example, you could be looking at a fee to set it up and surrender fees for taking your money too soon. You shouldn’t buy any product whose fee structure is unclear.

5. You’re being told it’s a “once in a lifetime opportunity”

Most sound financial products or assets are generally available to investors on an ongoing basis. If you’re being told as a given product is a once in a lifetime opportunity, consider it a red flag.

Stocks and bonds, for example, aren’t investments you have to rush into. Any investment you’re told will disappear in a few days is one you probably don’t want in your portfolio anyway.

Look out for your own best interests

Unfortunately, the people who try to sell financial products aren’t always honest. So your best bet is to verify the credentials of anyone you choose to invest with or turn to for financial advice.

In fact, you should know that I’m not a financial advisor myself — I’m just someone who’s seen too many people fall into the trap of listening to pushy salespeople. So while this is broad advice, it’s not personal to you. And if you want that personalized advice, you can get it by signing up to work with a financial professional you’ve vetted thoroughly.

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