Investment scams are making national headlines on a daily basis, and people’s savings are being wiped out. In this episode, Pam and Jack show you how to avoid becoming one of those victims. Learn about a community in Fort Wayne, Indiana that got scammed by a husband and wife team for more than 10 years. The lifetime savings of 100 people — $20 million — had gone up in smoke, all because of an investment pitch that was too good to be true.

That’s why you have to get objective, third-party information about that investment and the person who’s pitching it. In Investing 101, Indiana Secretary of State Todd Rokita describes the scam known as “affinity fraud ,” the warning signs to look out for, and how to do background checks on any investment pitchperson.

Often, investment has more to do our emotions and behavior than it does with common sense and even financial sophistication. Pam and Jack talk with well-known psychologist Dr. Phil McGraw about behavioral finance and the emotional aspects of how we deal with our money.