Many Seniors are retired, living on fixed incomes. It becomes even more important for them to invest wisely.

Interest rates have been going down in the past 18 months - good news if you're borrowing money.

"But generally, seniors are savers rather than borrowers, so for them, that lower interest rate just means that they're going to be getting less interest on their CD's or savings accounts," said Financial Advisor Diane Chong, from Central Pacific Bank.

Seniors who have been investing in certificates of deposit to supplement their social security checks have noticed a disturbing trend.

"A year ago, you probably could get a six month CD for about four and half percent interest. Today, that same six month CD would be about two and a half percent - just about half," said Chong.

That means, if they have only invested in Cd's, their interest income is cut in half.
Because traditional interest bearing instruments have been returning less, according to certified financial planner Diane Chong, Seniors may be prompted to look in other directions.

"Maybe some seniors have looked to money market funds, annuities, bond funds - and there's really nothing wrong those type of investments. It's just that they might not be familiar with the terms and conditions," said Chong.

For that reason, Chong says it's vital to do what many people are reluctant to do - - be nosy.

"Never be afraid to ask whoever is selling it to you questions. You should definitely say - what are the risks to this investment? Is there a chance I'm going to lose principal?," said Chong. "You should find out what type of fees you're paying. You should also know when your money is going to be accessible to you."

Financial experts also say children of aging parents should also be informed about the Senior's financial decisions.