How-to tips for keeping your retirement money Published May 24, 2007 By Debora Whipple N.J. Bureau of Securities, Office of the Attorney General MCGUIRE AFB, N.J. -- Seventy-five million Americans will turn 60 over the next two decades and they will be the first to retire with large sums of money from retirement and investment plans. Yes, that includes those 40-year-olds who might feel excluded, but with the use of very little math and a touch of reality, those 40ish, maybe even the 39-year-olds, actually do fall into that 75 million. Statistically, more men than women are victims of securities fraud. So now, here comes the how-to for not providing lavish lifestyles to someone else with your retirement money. First, always check out the background of the person you are considering investing with by asking your securities regulator for a CRD report. You can get this report on the person or the firm. Never trust someone with your retirement money whom you have not thoroughly checked out with a state securities regulator, such as the New Jersey Bureau of Securities. Otherwise, you may become a victim, instead of a "potential" victim, of a securities fraud. Remember and don't forget that a scam artist has a technique for separating you from your money that is proven and can be reused on you, as it has been before on others. In a recent case, a businessman raised $54 million from 500 seniors, promising to invest their money. He stole all of it. Seniors -- that group over the age of 60, who securities regulators see are the main targets for fraud -- will often give out their personal financial information to strangers over the phone. Don't! Sometimes, the release of that personal information comes after being approached by a financial planner or a new broker. Information that can be disclosed can also be used to steal from you. That person, also known as the professional scam artist, might bring you a gift at times or do you a personal favor to gain your trust. Little gestures may lure many victims into the web of the fraud. Trickery and high-pressure sales tactics are just two of the many tools used to commit securities fraud. Instead of providing a lavish lifestyle for a fraudster, protect your future. Fraudsters have bought yachts, homes, gifts for friends or a spouse and have taken luxury vacations using investors' money. Your retirement money does provide a great lifestyle -- when it is stolen from you -- for the fraudster. That retirement you saved for is then gone. Usually, at most, only pennies on the dollar are recoverable. An investor over 60 does not have the years to recover from the loss of being involved with that "trusted" individual. Remember to check out the person with your state securities regulator before handing over your money. Investors should seriously consider doing some homework which can result in changing the game with the scam artists. Fraudsters have a good chance of victimizing anyone not on guard or informed. Investors -- or anyone in the public arena -- can, in fact, learn a lot on their own. The New Jersey Bureau of Securities has free books on learning about investing -- the basics, common scams and information for the advanced investor. Investors should become familiar with the benefits of calling the bureau. Investors can obtain background information on anyone selling securities. At times, individuals who are not registered do business anyway, thus having that luxurious lifestyle you will give them. Only one-third of investors have ever checked out the background of the financial planner or broker. The fact that two-thirds of investors don't take just a few minutes to find out about the person who will have their personal information and, just as dangerous, who will have control of their future -- their money, can put them seriously at risk, or in extreme cases, cause them to lose their entire nest egg. Don't provide a luxurious lifestyle to a scam artist. Heed the following tips: - Don't be fooled into investing with someone or in something touting unrealistically high returns on your money. If is sounds too good to be true, it usually is - Don't trust that "guaranteed" or "no-risk" investment. There is no such thing. - Don't give personal information or control of your investment to a financial advisor or stockbroker, or anyone handling your money, without checking them out -- first. - Ask questions and read everything. - Understand investing and put a financial plan in place, know what you have, know what you can invest, what you want for your future, what you can afford to lose. - Obtain free booklets (the bureau has free educational material for the asking) and go to www.njsecurities.gov and learn from the bureau's Web site or any other state securities regulator's Web site. - The best step is a five minute step -- call the bureau. Remember that only one-third of investors ever checked out the person they plan to invest with. The state securities regulator, the N.J. Bureau of Securities of the Office of the Attorney General can be reached for background information by calling toll free: 1 (866) I-Invest or by calling direct: (973) 504-3600. The bureau's Web site is www.njsecurities.gov. Use it. Read it. Learn from it. Then read it again. Review the section entitled "Enforcement Cases" and learn about scams, the victims who believed in the investments and the fraudsters by reading actual bureau cases in the legal documents posted on the site. The Web site also has information on the top 13 scams, press releases, checklists, downloadable investor education books plus an interactive scam game that some investors find to be a challenge, as well as a learning experience. The public can e-mail questions or inquiries to askbureauofsecurities@lps.state.nj.us.