'It's good to be old': I've been invited to a dozen free meals that turn into annuity sales pitches. Should I stop going?

By Quentin Fottrell

'Salespeople typically push annuities, Medicare plans and estate-planning services'

"I'm going to four more in the next few weeks." (Photo subject is a model.)

Dear Quentin,

One advantage of being 70 is that we keep getting invited to free dinners and lunches. Salespeople typically push annuities, Medicare plans and estate-planning services. So far in 2026 we have been to roughly a dozen of these free meals, and I'm going to four more in the next few weeks. It's good to be old! How lucky am I?

Dining for Free

Related: We stopped helping our neighbors with free home repairs and our friendship cooled. Who's to blame?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

Free lunches are no reason to suspend your skepticism about high-risk investment products and, in particular, cryptocurrency.

Dear Diner,

You're not the only one.

Millions of retirees are also being targeted with the seductive aroma of mashed potatoes and freshly cooked steak. It's all fun and games until it isn't. A free meal is not a reason to trust an investment adviser selling annuities, stocks, bonds, mutual funds, managed investment accounts, legal services, time-share apartments or wealth management.

As for Medicare, you can easily obtain free, unbiased counseling through your State Health Insurance Assistance Program, and you should not rely on insurance agents who are likely receiving commissions for signing up enrollees.

A free lunch is also no reason to suspend your skepticism about high-risk investment products and, in particular, cryptocurrencies. These free meals are often billed as educational experiences, but they come with a catch, and that catch is that someone will want you to sign on a dotted line when your guard is down.

Here's a simple strategy for enjoying your free meals without getting caught in a trap: Never bring account statements or disclose financial information, don't sign contracts or enroll in a plan during the presentation, and always request all fees, commissions and terms in writing.

Enjoy yourself, take the brochures home and recycle them.

Look, there's nothing wrong with enjoying the occasional free steak or salmon dinner, provided you remember that you are a potential customer and the organizers will have dollar signs in their eyes. Enjoy yourself, take the brochures home and recycle them.

Dawn Dachenhausen, a financial adviser writing for the Retirement Strategy Group, based in Cottonwood Heights, Utah, has some words of caution for retirees who find it difficult to say no to a free lunch.

"Investors need to be extremely cautious of attending a free lunch seminar," she writes. "The registration process often involves disclosing personal financial information. At the seminar, essentially, the salesperson is paying for a captive audience."

She continues: "Such sales practices often begin with disturbing discussions about the volatility of the market and the product being sold is then presented as the solution. Some seminars use fear to sell highly commissioned products that may not be in the best interest of the attendees."

Related: My wife cried when I found out she had only $80,000 in her 401(k). I have $2.2 million. Am I wrong to be shocked?

The perils of free dinners

An investment adviser registered with the Securities and Exchange Commission will likely have a fiduciary duty under the Investment Advisers Act of 1940 to put your interests first. Membership in the Financial Industry Regulatory Authority guarantees that.

Keep your eyes and ears open. According to AARP, financial experts know that retirees like yourself, especially if they're single or widowed, like a free meal, and they are catnip for presentations on annuities and other products. Always consult Finra's BrokerCheck.

You should also be extremely cautious about promises of unusually high or too-good-to-be-true guaranteed returns. Verify an adviser's credentials and make sure you understand an investment before committing money, even a small amount.

And beware of scams. If you feel like a marketing rep is trying to twist your arm, run. Don't sign anything. Don't say yes. Don't even finish your meal. Make your excuses - tell them you have to use the restroom, if you must.

If you feel like a marketing rep is twisting your arm, run.

AARP outlines a series of red flags you might see at these chicken-or-steak dinners and lunches. They include promising wealth, high returns or a better lifestyle to tempt you into investing; raising expectations for unrealistic profits; and using titles, qualifications or positions of authority to gain your trust.

The organization advises retirees like yourself to verify the seller's credentials rather than relying on appearances or claims and, if you later decide to buy on an empty stomach, to make decisions based on your own financial goals and risk tolerance, not on what everyone else is doing.

Creating urgency by claiming an opportunity is available for only a limited time or in limited quantities is another big red flag, AARP says. Take your time researching and evaluating an investment before making a decision. Always trust your gut.

For anyone who has trouble saying no and has the "disease to please," telling an aggressive salesperson, "I'll think about it," can work wonders, as can, "I don't like making decisions under pressure."

Be aware that annuities can come with some very high fees.

As for annuities, they can come with high fees, though costs vary widely. Many, but not all, provide guaranteed income much like Social Security. How much you receive depends on your investment, the interest rate and the payment schedule, as well as your age, your gender and whether the contract is a joint-and-survivor annuity.

Inflation protection is limited. Payouts typically keep pace with inflation only if you buy an inflation rider, which lowers your starting payment. Some annuities offer payouts that rise over time, but they also start lower. You should grow more conservative in your 60s, but that doesn't mean annuities are the answer.

A lifetime annuity can protect you from outliving your money if you expect a long life. The tradeoff is access: The more of your investable wealth you commit to one, the less cash you can reach.

If you do buy one, protect yourself. Never give an adviser unrestricted withdrawal authority. Read everything before you sign, and have a lawyer or certified public accountant review the contract if necessary. Make sure your investment statements come directly from the insurance company.

A free steak does not mean you have to acquiesce to bad sales practices.

Related: My golf buddy worked as a financial adviser. Here's how I knew his friendship was fake.

By emailing your questions to The Moneyist or posting your dilemmas on The Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.

More columns from Quentin Fottrell:

'Just watch Judge Judy': I'm in my 70s. Why do people keep making the same avoidable financial mistakes?

'She's living the dream': My stepmother said I can buy my childhood home for $850,000. Is she taking advantage of me?

My father-in-law, 81, sold his $75,000 home to pay his daughter's $50,000 debt. How can I keep him from becoming destitute?

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-Quentin Fottrell

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