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High Risk Investments: Are Seniors Suitable Investors?

We’ve all heard the phrase “high risk, high reward.” This applies directly to high risk investment opportunities, as they also have the potential to generate considerable returns if they are successful.

Unfortunately, not every investor is a good candidate for high risk investments. Senior investors are some of the most commonly defrauded investors in the industry, so it’s important to be especially careful if you are a senior investor who is being recommended high risk investment opportunities.

Below, we go into further detail about what types of investments are considered high risk and why seniors may not be the most suitable investors for high risk investment options.

What Investments Are Considered “High Risk”?

The financial markets are inundated with different investment opportunities investors of all levels can pursue. But there are certain types that are known for being riskier than others. Some of these high risk investment opportunities include:

  • High-yield bonds (junk bonds)
  • Options trading
  • Initial public offerings
  • Hedge funds
  • Cryptocurrency
  • REITs
  • Penny stocks
  • Leveraged ETFs
  • Venture capital

These are only a few of the different investment options that may be considered high risk. Every investment is different, and just because the risk is high doesn’t mean you shouldn’t go for it. This is where having a financial advisor you trust is paramount.

Why Senior Investors May Not Be Suitable for High Risk Investments

There is one critical reason why senior investors may want to tread cautiously with high risk investments. As a general rule, the longer an investor’s investment horizon, the greater the return.

For many investors choosing high risk investments, they know that it could be years or even decades before their returns come to fruition. Senior investors don’t often have time on their side in these situations.

If your broker recommended high risk investments, misrepresented them, failed to inform you of the risks, or is otherwise responsible for your losses, you may be able to get your money back by pursuing an arbitration complaint with the Financial Industry Regulatory Authority.

Contact a Lawyer for More Information

If you are a senior investor who has been wronged by your financial planner and you’ve suffered tremendous losses as a result of their misconduct, get help from a respected lawyer at Wolper Law Firm.

When you’re ready to schedule your free, no-obligation consultation, you can do so by calling our office at 800.931.8452 or completing the online contact form we have included at the bottom of this page.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]