"With $16 trillion in savings accounts, baby-boomers nearing retirement, and their parents, are being lured by various retirement scams—the three most common being over-hyped investment returns, unsuitable annuities, and Ponzi schemes. The January issue of Kiplinger’s Personal Finance examines these retirement rip-offs and provides tips to avoid them:
§ Ignore the hype. Be suspicious of any sales pitch that promises unrealistic returns.
§ Do background checks. Before doing business with a broker, check his or her background using Financial Industry Regulatory Authority's BrokerCheck tool at http://www.finra.org/.
§ Get it in writing. Maintain notes of conversations with salespeople and keep copies of broker mailings and sales presentation handouts. After speaking with a broker about your investment goals, ask him or her to summarize your discussion in writing.
§ Set up an account. Open an account with an independent financial institution. Never write a check directly to an individual.
§ Don’t feel pressured. Consult with your adult children or another financial advisor.
Here is the the article in its entirety."
Source: Kiplinger’s Personal Finance