Advice and Resources to avoid investment scams

In a down economy, seniors and small investors become the likely victims of risky investments and financial scams. According to Metlife Mature Market Institute, senior financial abuse costs $2.6 billion annually. Seniors can avoid becoming just another statistic by arming themselves with information and resources.

• If it sounds too good to be true it probably is— One of the best questions a senior can ask is simply about the investment itself, questioning if the broker or product is registered with the state or national regulatory authorities. Be cautious of broker claims that their certificates of deposit (CDs) earn above average interest rates. Many companies trying to scam seniors will say the pay will yield much higher rates of return than normal.

• Be extremely skeptical of salespeople—Scammers target seniors by going door-to-door or pestering them with phone calls.

• Research, research, research—Check the U.S. Securities & Exchange Commission’s list found at www.sec.gov/investor/oiepauselist.htm of unregistered entities with consumer complaints. Also, make sure you do not agree to an investment without consulting family and friends.

• If you have been scammed, all is not lost—Financial crimes against seniors often go under reported, with seniors feeling ashamed or they do not know where to report the company. To file a complaint against a broker or firm, visit www.finra.org/complaint. Read about a seller’s background, at www.SaveandInvest.org or call 888-295-7422. For more on brokers or firms, call 800-289-9999 or log onto www.finra.org/brokercheck.

Source: ConsumerAffairs.com

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Home Care San Marcos, New Braunfels, Schertz, Canyon Lake, Seguin. Call 830-624-8380.

When my mother was in her 70’s, we talked her into adding identity theft insurance to her home insurance policy, knowing that the chances she might be a victim of fraud were fairly high in the senior demographic. The policy offered by her insurance policy for identity theft coverage cost nearly $30 extra per month, but after careful research we decided the benefits were worth it. While fraud insurance doesn’t actually cover any financial losses at the result of identity theft, it does provide coverage relating to the recovery process that occurs after such a fraud has occurred, including lost wages and legal bills up to $15,000 per claim.

When choosing to get the identity theft insurance for my mother, I ensured that the whole family understood that we still can’t let our guard down when it comes to managing my mom’s affairs. The same precautions still need to be taken when reviewing her finances and handling important documentation to prevent identity theft and fraud; the policy is only an additional safeguard, but it doesn’t decrease her chances of becoming a victim.

I would recommend fraud insurance to all seniors provided the policy is affordable for their lifestyle and income level, and that appropriate coverage is available. Fortunately, while my aging mom has not yet been impacted by fraud, we know with the insurance, if it occurs, she will manage to recover from it.

Sources:
1. Spam Laws
2. Globe and Mail Joanna Pachner

Home Instead Senior Care San Marcos, New Braunfels, Schertz, Canyon Lake, Seguin. Call 830-624-8380.

Talking to your senior parents about estate planning can be an uncomfortable subject, because many adult children don’t want to feel like they’re interfering with their parents’ personal affairs. Estate planning typically includes a legal will that outlines distribution of assets; a financial power of attorney which dictates who will look after a senior’s finances when they become unable; a medical power of attorney, the person responsible for carrying out a senior’s medical wishes; and a living will, which establishes a senior’s healthcare wishes if they become unable to speak for themselves. Discussing your senior parents’ estate early on with them ensures that you understand the role that they expect you to play after their deaths or during a medical emergency so that their wishes are carried out.

Talking to your elderly parents about estate planning becomes more important if they have not completed the necessary steps to protect their assets and secure their wishes. When approaching the topic of family estate planning, make sure that your siblings and immediate family members are involved so they don’t perceive your interests in your parents’ estate as self-serving. Ensure your parents understand you do not need to have the division of assets explained; it doesn’t matter how much they are planning on leaving you. What’s important is that they put the legalities in place to ensure they control what happens to their assets, even once they loose the ability to represent themselves.

Sources:
1. SeniorJournal.com Robert Valentine
2. FamilyEducation.com

Home Instead Senior Care San Marcos, New Braunfels, Schertz, Canyon Lake, Seguin. Call 830-624-8380.