If you are 50 years of age or older, you belong to a very special group that has amassed considerable wealth. It is estimated that this group has accumulated almost $8.5 trillion, with another $7 trillion to be added to the coffers through inheritance over the next 40 years. That’s a lot of moola!

However, it certainly doesn’t mean that everyone in this age group is rich. And with the economy in recession, many people unemployed and the stock market and housing values way down, many people in this group are concerned about having enough money to support themselves in retirement. A successful retirement often depends on more than just Social Security benefits and pension benefits. It also depends on your savings and how you invest your savings.

Obviously, you didn’t get to where you are today without doing something right along the way. It is likely that you participate at some level in the sharing of that $ 8.5 trillion and would welcome the opportunity to increase your share. As you know too well, there are those who are ready and willing to lend a helping hand. However, you must be careful that the hand is really “helping.” Investing during the current economic crisis is trickier than ever. There are plenty of scams out there in addition to investment products that are simply not right for your financial situation.

In order to address financial issues specifically pertinent to seniors, Florida’s Chief Financial Officer, Alex Sink, created the Safeguard Our Seniors Task Force. I, as a member of this task force and as the Insurance Consumer Advocate, am taking a close look at these issues. One of the first issues the task force looked at was the inappropriate sale of variable annuities to seniors. We found numerous instances in which retirees and widows in their 80’s or even 90’s were talked into putting their life savings into variable annuities that contained severe penalties for withdrawing money any time within the next 10 or even 12 years. This is not a suitable investment for persons of this age. The purchasers, of course, were either not made aware of the penalties or didn’t understand what they were buying. These findings led us to a related issue: the marketing of annuities, life insurance and other investment products through so called “free lunch” seminars. These are seminars which are advertised as providing education on retirement planning and financial matters.

The word that immediately grabs our attention is “free.” Advertisements are aimed directly at your age group offering “free seminars,” “free lunches,” and “free prizes” to attend the seminars that claim to educate you about financial matters. Some of the advertisements focus attention on you by saying “This workshop is designed for people between the ages of 55 and 84.” While the “seminar” and lunch may indeed be free, by signing up for these seminars you “pay” by providing personal information, such as your name, address and phone number, to the “sponsors” of the event. This leaves you open to receiving future phone calls from often aggressive salespersons even if you tell them you are not interested in their products or services.

Who wouldn’t be interested in receiving free financial advice at a seminar in a nice local restaurant, with free food, to listen to “experts” explaining how you can receive a “guaranteed income” or eliminate taxes on your retirement income? Sounds good doesn’t it? However, everything that glitters is not gold. For this reason the state is taking a closer look at the organizations that sponsor these seminars.

If you attend one of these seminars you will undoubtedly be solicited to invest in a financial product, such as an annuity or life insurance policy, while you are being “educated” about retirement. The person or company that puts on the seminar is doing it to make money by getting you to invest your money in the investment products they sell, and for which they are paid a commission. The so-called senior investment experts pitching these products often use scare tactics or high-pressure hype.

Of course, not all seminars are designed to cheat participants. However, most are sales presentations, despite claims of being “educational workshops” where “nothing will be sold,” according to a 2007 investigation by the federal Securities and Exchange Commission (SEC). Among the 110 firms scrutinized, half made exaggerated or misleading claims, and one in four pitched investments—such as annuities or high-commission investments—that were unsuitable to the audience, usually retirees or others over age 60. About 13 percent of the investments pitched appeared to be outright fraud, the SEC reported.

The North American Securities Administrators Association (NASAA), an organization whose membership includes all state agencies that regulate securities dealers, warns that “State securities regulators are seeing a variety of violations associated with many of these seminars, ranging from outright lies and the conversion of investor funds to more sophisticated forms of abuse. Often, in a follow-up sales pitch, the salesman recommends liquidating securities positions and using the proceeds to purchase indexed or variable annuity products that the specialist offers. These products are often grossly unsuitable for senior citizens. Securities professionals must know their customers’ financial situation and refrain from recommending investments that they have reason to believe are unsuitable. It pays to remember to make sure your investments match up with your age, your need for access to your money and your tolerance for risk.”

The American Association of Retired Persons (AARP) has also warned its members to be wary of these seminars. They emphasize four ways to protect yourself:

Don’t invest without checking the presenter’s credentials at your state securities regulatory agency.

Ask the right questions: Suggestions are available from the U.S. Securities and Exchange Commission (SEC)

Be wary of hot “new” investments, such as alternative energy sources and hedge funds.

Most of all be skeptical about what you hear.

For more on investment fraud and specific advice for seniors, visit the SEC website or the NASAA website. The SEC provides a wealth (pun intended) of information for investors.

Do not get me wrong, you should attend legitimate financial seminars. As the ICA, I endorse any legitimate educational opportunity for Florida’s insurance consumers. The difficulty comes in determining which “educational seminars” are legitimate or which are being put on by individuals with bad intentions. It is difficult enough for the State to determine if these seminars are legitimate so it may be even more difficult for you. As Florida’s Insurance Consumer Advocate, a major part of my job is to protect you, the consumer. I want scam artists to know that Florida is not the state where you can take advantage of our citizens. You can also help us to help you by visiting our website. The website will provide you with other ways to be better prepared the next time you hear the term “Free Lunch Seminar.” You can also visit the Safeguard Our Seniors Task Force website for information about annuities, life insurance, reverse mortgages, estate planning and many other matters of particular interest to seniors.

If you do decide to attend any seminar I strongly encourage you to:

Obtain the presenters’ names, license numbers, and the name (and address, if possible) of the insurance agency or financial services firm that is sponsoring the event. If you have any suspicions about the validity of the seminar, or to verify the appropriate licensure of an insurance agent, agency or company, contact the Department of Financial Services, Division of Consumer Services at 1-877-MY-FL-CFO (1-877-693-5236) or go to the website. To verify the appropriate licensure of other types of financial advisers or firms, contact the Office of Financial Regulation. Their website also provides advice and information about financial products as well as some excellent resources for obtaining assistance.

If you are not familiar with annuities, click on consumer guides and take a look at the information available on the CFO’s website.

Ask questions. During the presentation, don’t hesitate to ask for clarification of anything you don’t understand. I highly recommend that you obtain a copy of the list of questions available from the SEC. Ask for a copy of a prospectus or other written material that provides more detail on the products they are pushing so you and your financial advisor or family can discuss them later.

Promise yourself you will NOT be persuaded to purchase or commit to anything while at the seminar. No matter how much they say about the offer being limited, or that it will only be available for a short time – if it is a real, legitimate offer, it will still be available after you’ve had a chance to discuss it with your financial advisor.

Always remember that old adage; “If something sounds too good to be true, it probably is.”