Talk to them about their money (and those who could take it away).
Elders are financially defrauded daily in this country.
Just a tiny percentage of these crimes are made public. In fact, the
National Adult Protective Services Association (NAPSA) estimates that
only 1 in 44 cases of elder financial abuse are reported. A recent NAPSA
study found that 11% of seniors had been financially "abused, neglected
or exploited" within the past year.1
Friends, family & caregivers perpetrate much of this financial abuse.
They commit 90% of it, NAPSA estimates. Major damage may result to an
elder's finances and physical and mental health: victims of elder
financial exploitation are four times more likely to go into a nursing
home than their peers, and nearly 10% of the victims end up relying on
Medicaid.1
Frauds range from big scams to little schemes.
You likely know about the common ones: the grandparent scam ("Grandpa,
I'm in jail in _____ and I need $___ to make bail"), the utility company
scam (one criminal keeps the elder busy in the yard as the other
burglarizes their home), the lottery scam (a huge prize awaits, the
elder need only pay a few thousand up front to take care of associated
taxes). Others are subtler: home health aides severely overcharging an
elder for their services, relatives or caregivers using a financial
power of attorney to draw down an elder's bank or investment accounts.
Talking about all this may help to prevent it.
Perhaps the best way to introduce the topic is by referring to what
happened to someone else - a story coming up on the news or in the
paper, an article online. AARP's Fraud Watch Network emails a monthly
newsletter highlighting common scams; it also maintains a map showing
per-state occurrences of such crimes.2
A 2014 Allianz Life
survey discovered something very encouraging. Seniors who have talked
about the issue of financial exploitation with others seem less likely
to succumb to it, especially seniors who have talked about such risks in
the company of a financial professional.2
The insurer asked
more than 2,000 Americans about their awareness of financial fraud - men
and women aged 65+, and select family members and friends aged 40-64.
It found that 97% of seniors who talked about finances with a hired
professional were likely to check their monthly credit and financial
statements, while only 84% of those who talked about their finances with
no one were likely to do so. It also found that 93% of seniors who
communicated with a hired professional were likely to refrain from
signing a financial document they could not fully understand; that was
true for just 82% of seniors who had never addressed financial topics in
the company of professionals, friends or family.2
Another
pair of examples: 85% of elders who discussed personal finances
consistently shredded or destroyed sensitive financial paperwork while
just 69% of those who refrained from such discussion did. Thirty-seven
percent of seniors who talked about their finances with a professional
were also more likely to have a co-signer for their bank accounts, as
opposed to 14% of those who were handling their personal finances solo.2
Have the conversation; have a look at Mom or Dad's financial situation.
It is only prudent to do so. The National Center on Elder Abuse says
that the average financial fraud perpetrated on an elder siphons $30,000
out of his or her finances. Think about how devastating that is,
especially for a poorer retiree; that may equal a year's worth of
medical expenses, a majority of an elder's yearly income, or a
double-digit percentage of his or her remaining retirement savings.
Elders rich and poor need to be warned about such crimes.3
|
Citations:
1 - napsa-now.org/policy-advocacy/exploitation/ [4/30/15]
2 - allianzlife.com/about/news-and-events/news-releases/preventing-elder-financial-abuse [4/20/15]
3 - tinyurl.com/p4y6pa7 [4/20/15]
|
|
Sincerely,
Bill Morrissey, CFP® and Tammy Prouty, CFP®
Sound Financial Planning, Inc.
|
Primary Office
425 Commercial St., Ste 203
Mount Vernon, WA 98273
Phone: (360) 336-6527
|
Secondary Office
650 Mullis St., Ste 101
Friday Harbor, WA 98250
(360) 378-3022
|
|
PLEASE READ THIS WARNING:
All e-mail sent to or from this address will be received or otherwise
recorded by the Sound Financial Planning, Inc. corporate e-mail system
and is subject to archival, monitoring and/or review, by and/or
disclosure to, someone other than the recipient. This message is
intended only for the use of the person(s) ("intended recipient") to
whom it is addressed. It may contain information that is privileged and
confidential. If you are not the intended recipient, please contact
the sender as soon as possible and delete the message without reading it
or making a copy. Any dissemination, distribution, copying, or other
use of this message or any of its content by any person other than the
intended recipient is strictly prohibited. Sound Financial Planning,
Inc. has taken precautions to screen this message for viruses, but we
cannot guarantee that it is virus free nor are we responsible for any
damage that may be caused by this message. Sound Financial Planning,
Inc. only transacts business in states where it is properly registered
or notice filed, or excluded or exempted from registration requirements.
Follow-up and individualized responses that involve either the
effecting or attempting to effect transactions in securities or the
rendering of personalized investment advice for compensation, as the
case may be, will not be made absent compliance with state investment
adviser and investment adviser representative registration requirements,
or an applicable exemption or exclusion. This information should not
be construed as investment advice. All information is believed to be
from reliable sources; however, we make no representation as to its
completeness or accuracy. WE WOULD LIKE TO CREDIT THIS ARTICLE'S CONTENT
TO MARKETING PRO INC.
|
|
|
|
