Beware Those Free Steak Dinners!
Category: Financial and taxes in retirement
December 3, 2018 — One of the intriguing lines that came up during the interviews for our “Should You Hire a Financial Advisor, Or Do It Yourself” article of a few months ago was this one: “Beware those free dinners”. Lewis, the author of that quote, was referring to those invites you get in the mail for a free dinner at some nice restaurant; in exchange all you have to do is listen to some financial expert tell you how you can make a ton of money. Recently Ron Lieber, a columnist from the New York Times, took up that invitation, using one that came in for his 80 year aunt. The pitch was: “Tired of the stock market roller coaster ride? Want to protect your principal and lock in interest earnings?” The answer was to be found during a free
Comments on "Beware Those Free Steak Dinners!"
Louise says:
I have received tons of these invitations, over the years, but never attended any of them.
Pat R says:
I have gone to several, but I am very good at saying no.
Tomi Huntley says:
We went to one over 10 yrs ago. Still our advisor. Got us ready for my husband's retirement in 4 yrs.
Jennifer says:
Really? I can live without a free steak dinner that will just try to pressure me into buying goods and services I may not want. Those who accept those invitations surely must know that there will be high pressure tactics used to lure them in. Not worth a free meal to me.
RichPB says:
This is one of the biggest "scams" against aging folks. Frankly, beware ANY group or mass offering of financial services. They may be valid and ethical, but in addition to the pressure and high promises there are often (always?) other hidden dangers. Years back, our university alumni association offered such a dinner and, naturally, we were interested in such a "reputable" offering. Just like this article, the presenter was an insurance salesman more interested in his pockets than our benefit (leave your kids a huge insurance payoff). Even my then employer, IBM, perhaps inadvertently participated by offering free private financial advice from AMEX. Fortunately, having researched on our own, we recognized that the only offerings made to us were AMEX funds with exorbitant fees -- up to 8%! None of the offerings were less than 2% annual. And all I had to do was sign over my full lump sum retirement benefit to them to take advantage (or be taken advantage of!). More recently we followed up after hearing a radio financial advisor who had provided sound basic advice over the air. But the only offering made in person was for a long-term commitment of more than $100K for a "guaranteed" annuity with "promises" of greater than benchmark returns. All of these on the surface were "legitimate", all came with great promises, but all came with more or less hidden pitfalls. Your best defense is to educate yourself related to financial investments and think two or three times before buying into any financial service.
Louise says:
This is very much like the Timeshare selling techniques. After you attend their torture session they will send you on your way with a few tee shirts and a dinner voucher. So not worth it and I have attended many of them!
Troutbum 52 says:
I've spent 35 years on Wall Street and I can assure you that an investment dinner seminar has nothing to do with "investment" but is all about "selling".
Jeff says:
I receive several of these a month. My wife and I go to them about once a year but never sign up for "advice." They are ALWAYS pushing annuities. Sorry. Not interested.