Tips on How to Protect Your Nest Egg from Financial Fraud

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Tips on How to Protect Your Nest Egg from Financial Fraud

The following tips can help you avoid losing money and should be carefully considered when making investment decisions such as arranging for a reverse mortgage or purchasing an annuity.

1. Be alert to high pressure sales tactics with an insistence on making an immediate decision. Take your time to learn about the investment.

2. Avoid sales people who are unwilling to let you discuss the deal with another trusted advisor or provide written information with verifiable references.

3. Thoroughly check out the salesperson and company before providing your personal information, funds or signing an agreement. Start with the California Department of Corporations, Department of Insurance and Better Business Bureau.

4. Be aware that annuity products may be associated with high sales commissions and stiff penalties for early withdrawal.

5. Be careful about “Free Lunch” estate planning seminars where products like Reverse Mortgages and Living Trusts are pitched.

Below is a list of contacts where you can get additional helpful information:

• California Department of Corporations: http://www.corp.ca.gov (866) 275-2677
• California Department of Insurance : http://www.insurance.ca.gov (800) 927-4357
• California Department of Real Estate http://www.dre.ca.gov (916) 227-0864
• Yolo County District Attorney http://www.yolocounty.org/Index.aspx?page=510 (530) 666-8180
• Better Business Bureau http://www.sacramento.bbb.org (916) 443-6843


Jeff Reisig
Yolo County District Attorney
Elder Abuse Unit