Have an issue with your financial adviser or thinking of hiring a new one? Email picks@marketwatch.com.
- Free lunch seminars often involve aggressive sales pitches for investments
- 25% of advisers at free-meal seminars recommended unsuitable investments
- 12% of free-meal seminars involved some kind of fraud
- Complex annuities are often pushed at these seminars
- Brokers selling annuities have less stringent requirements
- Steak dinners and other gimmicks are used to prospect for clients
- Do a background check on potential advisers before hiring them
Finding trustworthy financial advice can be tough, and free lunch seminars are often not the answer. These seminars, which offer a free meal in exchange for attending an investment presentation, are usually slick sales pitches aimed at older individuals. AARP found that 25% of advisers at these seminars recommended unsuitable investments, and 12% involved some kind of fraud. Complex annuities are often pushed at these events, as brokers selling annuities have less stringent requirements. It’s important to do a background check on potential advisers before hiring them. Don’t be lured by gimmicks like steak dinners – make sure you’re not on the menu.
Public Companies:
Private Companies: undefined, undefined, undefined
Key People:
Factuality Level: 7
Justification: The article provides information about the potential risks and pitfalls of attending free-meal investment seminars and highlights the need for investors to conduct background checks on financial advisers. The information is based on findings from AARP, the U.S. Securities and Exchange Commission, state officials, and other securities regulators. However, the article does not provide specific examples or data to support the claims made, and it includes some generalizations and subjective statements.
Noise Level: 3
Justification: The article provides information about the risks and potential scams associated with free-meal investment seminars. It highlights the fact that some of these seminars involve aggressive sales pitches and unsuitable investments. The article also mentions the lack of regulation in the annuities market and the potential for misleading information. However, the article lacks scientific rigor and intellectual honesty as it does not provide any evidence or data to support its claims. It also does not offer any actionable insights or solutions for readers. Overall, the article contains some relevant information but lacks depth and evidence to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: No
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the issue of financial advisers using free meal seminars as a marketing tool to connect with potential clients. It highlights the potential risks and misleading information that can be presented at these seminars. However, there is no mention of any extreme events or specific financial markets impacted.
www.marketwatch.com 
