Often, inexperienced investors don’t know how to choose the right advisors or where to get tips on investing.
To help, the Alberta Securities Commission has identified the top threats that new investors may face in 2016. People could be at risk if:
They’re baby boomers. Baby boomers are the largest and wealthiest group in Canada, which means they’re often a target for scam artists. To avoid unsuitable and dangerous investments, people can look for these red flags (To help your book, read: Help wealthy clients make investment decisions).
They’re working with unregistered salespeople and companies. Before investing, investors should always check the registration of the person or company they’re considering hiring. If clients are working with other advisors or professionals, ensure they’ve done their research.
They rely on social media and online research. Online sources of information can be misleading. Also, scam artists can identify people as targets through chat rooms or social media groups. Investors can click here to learn more (To help your book, share these 5 simple but important online security habits).