Articles Tagged with investment advice

If you’re a senior investor, you’ve likely been planning and saving for years to build your portfolio. You have rightfully earned everything you have accrued over the years and you deserve to realize the fruits of that labor in your golden years.

Unfortunately, your nest egg marks you as a target for investment fraud. Scammers like to prey on what they consider “easy targets” – those without the means to defend or protect themselves against investment fraud. The Securities and Exchange Commission (SEC) has regularly cited senior investor scams as a chronic fraud issue. Most recently, the SEC has pointed to Ponzi schemes as a major vehicle for perpetrating investment fraud against seniors.

Ponzi Schemes Targeting Seniors

If you’ve looked into hiring an investment adviser or advisory firm to help manage your investments, you may have seen some offer various advisory services bundled together under one comprehensive fee. These types of service fees are called wrap fees and are offered as sponsored packages by many advisory firms.

With wrap fee programs, your advisor or firm serves as the “sponsor” for the program; essentially the liaison between you and your service offerings. Typically, the fee for these types of programs is determined by the overall value of your investment account. While it may seem easy enough on your end to just pay one flat fee for a bundling of advisory services, there are things you need to watch for when considering wrap fee programs.

Understanding Wrap Fees

Banking giant, Wells Fargo, recently rolled out a new robo-advising platform aimed at enticing first-time investors to invest through Wells Fargo-packaged investment offerings. The unveiling of the automated advisory platform marks the latest in a concerted effort by large-scale financial institutions to capitalize on tech-savvy consumers and meet the changing demands of a digital marketplace.

Robo-advising has grown as an increasingly popular platform for investors who seek more autonomy in their investment decisions as well as expedited trading.

What is Robo-advising?

You’ve probably heard of the popular cryptocurrency investing platform Bitcoin, but what about Ethereum?
Or Litecoin?
Or Dash?

The Securities and Exchange Commission (SEC) has released an investor bulletin for investors to understand the fundamentals of robo-advisor investing, or the practice of using automated investment platforms.

Robo-advisor investing has risen in popularity, especially among d-i-y and at-home investors due to the relatively low cost compared to traditional investing and expedited nature of deals.

With this rise in popularity, however, risks are bound to follow. Automated trading platforms may be vulnerable to hacking and computer fraud.

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