Surely there's a time to call it a day?

whatstheplan

I will preface the following by saying I obviously do not know the personal circumstances of those involved.  Maybe they have a financial requirement to keep investing.

Was watching a tv prog a week or so ago about people getting scammed by bogus investment opportunities featured on social media, cold calling or junk mail.  One example was a cold call offering the lady something like a guaranteed 5% return on £1000 if she left it invested with them for 12 months.  She wired the money, never heard from them again.  She was 83 or thereabouts.

Another story was a couple, looked as though they were in their mid 70's.  Can't remember the specifics of their story however again they lost out, although this time it was around £20k.

Like I say, it is of course everyone's right to keep on investing til they peg it should they so desire, however especially when I saw the story about the 83 year old I thought 'call it a day investing wise and live off what you've previously invested/accumulated.'  Not so much referring to things like S&S ISAs or other recognised investment strategies, however these were relatively random adverts for one off 'investment opportunities.'

ChilliBob

I don't really think age has much to do with it. There's plenty of examples of people in their 70s and 80s investing, doing well, and not getting scammed. Also plenty of cases of youngsters getting scammed too. 

I take the point older people are more likely to get scammed, which is why they tend to focus on those people on TV, but, anyone is susceptible to scams and everyone has to be careful  

masonic

Scammers are very manipulative, they find people's weaknesses and exploit them. Some people can be quite susceptible to this. They may feel financially secure and less protective of their money, they might be driven by a desire to provide for their heirs, they may be coerced. There are plenty of reasons someone might be motivated to take part in a scam other than financial necessity.

dunstonh

Like I say, it is of course everyone's right to keep on investing til they peg it should they so desire, however especially when I saw the story about the 83 year old I thought 'call it a day investing wise and live off what you've previously invested/accumulated.' 

That isn't investing.  That is being scammed. 20 year olds, 30, 40, 50 etc are all being scammed.

colsten

whatstheplan said:

call it a day investing wise and live off what you've previously invested/accumulated

How's that going to work for people who haven't invested before?

How does one figure out when one's had invested/accumulated enough?

How does living of your investments stop you from getting scammed?

kinger101

I suspect the elderly are mostly targets because they are more likely to have some accumulated wealth, and they are not always internet savvy.  But as others suggest, falling for scams isn't restricted to pensioners.

I know someone in their twenties who bought a dodgy car off gumtree.  Their spouse happened to be an ex-police officer to boot.
My employer also sets test phishing e-mails to check whether employees are engaging in risky online behavior.  From my direct reports at least, it seems the younger employees are the most naive.  Perhaps because they haven't had decades of dodgy e-mails from Nigerian princes etc.

bostonerimus

You need to stay invested to optimize your risk vs withdrawal amounts. You could "call it a day" and buy an annuity, but you will probably end up with lower income than staying invested in the markets - you might live longer though because you'll have less worry. You should only invest with reputable companies and never respond to unsolicited contacts.

whatstheplan

Thanks for the replies.  I suppose what I was driving at is when is enough enough.  As I say, I don't know the circumstances of those featured, however 'if' the 83 year old woman was already comfortably off, what's really to be gained by giving someone (reputable or otherwise) £1000 for a year to gain £50?

bostonerimus

whatstheplan said:

Thanks for the replies.  I suppose what I was driving at is when is enough enough.  As I say, I don't know the circumstances of those featured, however 'if' the 83 year old woman was already comfortably off, what's really to be gained by giving someone (reputable or otherwise) £1000 for a year to gain £50?

That's a very deep question. You are lucky if you can ask it in honesty rather than having to worry about your basic bills.

darkidoe

whatstheplan said:

Thanks for the replies.  I suppose what I was driving at is when is enough enough.  As I say, I don't know the circumstances of those featured, however 'if' the 83 year old woman was already comfortably off, what's really to be gained by giving someone (reputable or otherwise) £1000 for a year to gain £50?

I think it's a deeply personal question. I think on average we tend to think we always need more, but reality is we can survive on a lot less than we think we need.

The other way to think of it is 'if' the lady was comfortably well off, what's there to lose by investing?? You will see many investors here on the forum in their retirement reasonably heavily in equities. As long as the risk is managed,  there can still be good outcomes.

Of course how you tell the story through the media would frame the perspective. And media tend to portray stories in the way that will 'sell the stories'

Malthusian

People who are capable of long term investment are also capable of recognising the existence of a future beyond their death.

People who keep all their money under the mattress are more likely to fall for scams than experienced investors. "Are you sick of rock-bottom interest rates?"