It is true that not all seniors fit the mold described in the article. However, I see some truth, and appreciate the warning the article puts out. My in-laws are very susceptible, and it seems to come from overconfidence. They are not well off, by anyone's interpretation. However, they have quite a bit. With 15-20 years of retirement under their belts, they have saved more than most. They are frugal in the traditional sense. They have even survived a few years of investing with the guy who went to son-in-law's church. Therein lies the problem, I believe. Rather than relying on the collective advice of several daughters and son-in-laws, their attention is skewed for whatever reason to one daughter and S-I-L. However, many of you would look at some of these decisions and question the reasonableness.
For instance, they keep their house too cool in winter (65), and too warm in the summer (78). Their windows and doors were fine. The bills were extremely low due to their frugality and the well-built house. One day this year a salesman stopped at their door and told them of the savings they would get with all new windows. They signed a contract. Warning bells went off in my head. I tried to get the favorite to question the purchase, and do some research on the contractor. "He has a web site, and I went to it and it looks good." I knew there was no turning the ship around. Six months later F-I-L starts complaining to me about his electric bills in the summer, and how they did not see any savings. Well, they are 85, and I calculate the payback as something like 20+ years, if they turn up the heat!
Second point is that I go to the financial dinners. Just went last week. I send in reports to AARP about what was said, who were the representatives, and so on. Happy to report that it appears the majority of people at these dinners are tough-minded and well in control of their retirement. However, of the 20 atttendees, I can see there are a handful of prospects. You have to understand that if one out of 20 signs up for the paid advisor, long term care and annuity, then the dinner has been a success.
There is definitely positive-bias in the crowds I have sat with over the last two years. I have observed quite a bit, and I can see the message laid out over and over. "It is a bad world, look at these wild swings in the market. However, my good friend Leo from Washington La-Dee-Da can show you how an insurance company can guarantee you 5% with this variable annuity."
