Brokerages are in the business of money, and that includes luring in retirees with what appear to be generous “bonus” offers. Whether it’s a $1,000 cash incentive for moving assets or extra stock perks for opening a new account, these deals are often marketed as can’t-miss opportunities for older adults with substantial savings. But are these promotional offers actually benefiting you, or quietly draining your nest egg?
In theory, a cash bonus for doing something you were going to do anyway sounds like a win. But in practice, these offers are often structured in ways that can work against the investor, especially those who are older, more conservative, or less inclined to scrutinize the fine print. Before you jump at that enticing promotional pitch, here’s what you need to know about the hidden costs and whether the so-called “free money” is worth the risk.
