Retirement Scams

You have reached a point in your life that you have decided to take early retirement. I am sure you will be bombarded with many invitations to retirement seminars. You will be offered many types of plans that may appeal to you. But you must use the guideline if it's too good to be true it probably is. Many of these seminars are designed by con men to relieve you of your money.

Here are a few tips that will help you avoid the pitfalls of a fraudulent or misleading retirement plan. First you must face a fact that many people are not eligible or financially able to retire early.

In many of these plans they will tell you you must act now or the opportunity will be gone if you feel like you are being pressured or rushed into some kind of deal the best thing to do is just walk away.

Many of these plans will promise you a high percentage of returns for example 12 or 13%. Most of this information is greatly exaggerated. If you are investing in the stock market about the highest rate of return you can inspect is five or 6%. You must remember the stock market is a highly volatile place with its ups and downs nobody can really guarantee you a high return.

The scammers will tell you you can withdraw at least 8% of more a year and never deplete your money this is totally inaccurate. Many experts say you should expect to withdraw 2-5 percent per year during the first years of your retirement.

If you are contacted by phone never give out any bank information Social Security number or any pertinent personal information this is a good way to have your identity stolen.

Before entering any transactions with one of the so call retirement specialist you should make sure they are licensed and bonded by the state you live in. Never deal with a person on a personal level it should always be through a company that is also registered in your state.

If you do feel like you are being scammed or suspect some kind of fraud you can file a complaint with the state officials such as the attorney general's office or state security regulators. So keep your eyes open and be aware there are many scammers out there with these unbelievable plans that are generally fraudulent and not true. Always deal with a company that is licensed and bonded in your state. Be sure to check out their credentials and see if they're registered with the Better Business Bureau.