Equity Indexed Annuities | Top Threats For Investors In Missouri

Missouri investors should be most wary of con artists targeting seniors and falling for fake gold, among other scams, Secretary of State Robin Carnahan said Thursday.

Her announcement highlights what she deems the top threats facing investors in 2011.

The first threat deals with con artists targeting social groups

such as churches social networking sites and senior centers. Seniors are targeted especially by these schemes due to the amount of funds they have invested over time. Carnahan has addressed this demographic specifically, sending warnings to more than 250,000 seniors across the state. Fraud targeting social groups cost Missourians more than $11 million.

The second threat deals with the exchanges of promissory notes. Carnahan advises investors to make sure the private loan is legitimate or not.

Another threat deals with con artists offering variable and equity indexed annuities. These forms of investments require high surrender fees to assess savings and may not be for everyone, especially seniors. Carnahan’s office, over the past year, recovered more than $1.6 million from unsuitable annuity sales.

Fake gold, silver and foreign currency are being used to sidetrack investors as well. Even free lunches and dinner seminars are part of con artists’ playbook. Carnahan advises investors to remain cautious and alert and said if it sounds too good to be true, it probably is.

“There’s no such thing as a free lunch,” she said. “Make sure you get everything on paper.”

St. Louis is ranked second behind New York City in terms of having the largest concentration of financial investors. Carnahan said these investment schemes not only impact individual investors but also the St. Louis economy as well.