Senior Financial Tips

Many people look forward to the “golden years” when they will be able to slow down, relax and enjoy what they have worked hard and long for. Unfortunately there is a problem that is growing in direct proportion to the growth of America's population of seniors. The problem is financial exploitation of senior citizens. Financial exploitation occurs when someone advises a senior citizen to make a financial decision based on threatsŠ pressureŠ or incomplete or misleading information. This results in decisions with their assets that are NOT in their best interest. Seniors can be exploited by lots of people for lots of reasonsŠ not only in a criminal way, but by family and friends, too. Senior exploitation occurs due to a lack of information, because of isolation, because of their generosity, and because they want to remain independent. The AARP reports that seniors are the target of 40% of all financial scams. It is important to note that most financial abuse goes unreported. Why are senior citizens the targets for financial scams? A few of the reasons are: Unscrupulous people know that persons over the age of 50 control over 70 percent of the nation's wealth. Many seniors live alone. They have limited contact with family, friends and members of social or religious organizations and that makes them particularly vulnerable to scams. Isolation increases the potential for seniors to be exploited and lessens the possibility that no one will detect or report it. Most seniors have not taken the time or expended the energy to do a good job of financial planning. A concern for many seniors also, is whether they will outlive their financial resources and that can make them susceptible to those who promise easy solutions and big returns. Some tips seniors can use to protect themselves are: Take your time - Don't be pressured into making a decision quickly. I recommend taking 24 to 48 hours to review your consideration before acting. Be suspicious of anyone who promises you inflated returns on an investment. Be sure to ask your advisor to be specific about any inherent risks in an investment. Involve others (spouse, family, friend) - have the advisor explain to others what has been discussed with you. Check out financial professionals to verify they have the licenses and designations they are listing and confirm that they are a member in good standing with those organizations. Understand the nature of the investment - Ask questions, a lot of questions until you are comfortable with the investment and the advisor. Monitor your account statements closely - if you do not understand your statement ask your advisor to go over it with you. The most important tip is to have a plan. It is never too late to put together a financial plan. Proper Planning Produces Peaceful Prosperity. Source: Valley Free Press