Scams target investors frantic for safe returns

Q: My retirement CDs, which are currently paying 5.2 percent, will mature next year. Of course, I'm concerned about where I can put the money when that happens. I'm a 74-year-old widow who has been living on Social Security and the required minimum distribution from my IRA. My newspaper in Arizona has ads for what looks like too-good-to-be-true returns. It says: Attention CD owners 7.0% APY, and principal and interest are totally secure. The firm, according to the ad, has an A+ rating with the Better Business Bureau and has been serving clients for over 11 years. Can this be a safe investment? I'm pretty much convinced it isn't.

Gail MarksJarvis

September 7, 2012