As if the financial depression and low interest rates aren’t enough, Baby Boomers are facing a raft of scams and investment fraud. This recent WS Journal article highlights some recent episodes and underscores the need to do due diligence on your money.
Keith Grimes, 56, of Mulberry, Fla., sunk $500,000—”every penny that I made,” he says—into an investment fund marketed to older investors that promised returns of 14% to 24%. Billed as having a manager with a successful track record trading stocks and other investments, it turned out to be a Ponzi scheme, in which money from new investors is used to pay returns to other investors.
“Sometimes we think, ‘Maybe we were just being too greedy,” says Mr. Grimes. “But you try to get the best return you can when you’ve saved through your career to be able to retire.”
Sometimes, when things seem too good to be true, you should be extra cautious in your due diligence.