Seeking Financial Advice in Tough Times

FOR IMMEDIATE RELEASE
October 8, 2009

Currently the national law allows people to collect unemployment benefits for 79 weeks. 79 weeks is already an extension of the usual time limit for unemployment and, yet, legislation is being considered that would extend this benefit time. Why? Because many people have been unemployed for longer than 79 weeks, and the number of people unemployed continues to increase.

"My colleagues and I are hearing different financial questions from people now than we did a few years ago," says Kathy Sweedler, University of Illinois Extension Educator. "This is a very difficult time for people financially and their financial situations are often complicated. They may need a wide range of different kinds of financial advice, and they need to know how to find a reliable adviser for their particular needs."

Before you start working with a financial professional it is worth taking the time to compare two or three financial professionals in order to choose someone who is a good match for you. Be aware that anyone can call themselves a financial advisor! You want to choose someone who has appropriate education and experience. Interview financial professionals and ask many questions. University of Illinois Extension's website Choosing a Financial Professional, http://web.extension.uiuc.edu/financialpro/, discusses how to evaluate a financial professional's credentials and explains how different financial professionals are paid. At this website you can download a free interview guide.

Unemployment, and the problems that that arise with reduced income, is a very stressful situation. One out of eight households with a mortgage is currently delinquent on their home loan or in foreclosure. According to Sweedler, "We know that people are especially vulnerable to fraud during times of stress."

"If you're having trouble paying your mortgage payments, contact a qualified housing counselor, Sweedler recommends. She suggests visiting HUD's website at www.hud.gov or calling (800) 569-4287 for a list of qualified housing counselors.

When purchasing investments, take a few simple steps to protect yourself. Before you invest, take time to check that both the investment and the person selling the investment are legitimate.

1. Check that the investment option you're interested in is registered with your state's securities regulator. If it is not registered, then this is likely a fake investment. Don't invest!

2. Who is selling you the investment? Check the financial professional's background and references. In Illinois, a simple way to check on an investment option or a person's licenses and disciplinary records is to call the Illinois Securities Department, toll-free 1-800-628-7937 or visit their website at http://www.cyberdriveillinois.com/departments/securities/.

For more information on how to recognize and avoid investment fraud, visit the Plan Well, Retire Well: Your how-to guide website at www.RetireWell.uiuc.edu.

Source: Kathy Sweedler, University of Illinois Extension, sweedler@uiuc.edu; (217) 333-4901.