So many of us have heard stories of financial scams. It's not just the elderly who are targeted. We all can feel the pinch, the anger and the shame when we fail to recognize a deal gone wrong. Please read the suggestions below and take action to protect yourself. Pass it along so friends and family also might benefit.
To help adults protect themselves, the Federal Reserve Bank of Philadelphia published seven actions to take. They are:
1. Assign trusted contacts to all financial accounts. This is a person whom a financial institution can contact when exploitation or unusual behavior is suspected.
2. Prepare a durable financial power of attorney. A financial power of attorney allows a trusted person (an “agent”) to act on behalf of someone who can no longer make decisions independently (a “principal”). This is a powerful privilege and should only be given to someone who is trustworthy.
3. Prepare a will. Having a will prepared is important no matter what age you are. For the elderly it will help avoid future problems, because changing the will requires a person to have the legal capacity to do so.
4. Keep up on the latest scams. The Philadelphia Fed says the Federal Trade Commission (www.consumer.ftc.gov/features/scam-alerts), the National Consumers League (www.fraud.org) and AARP (www.aarp.org/money/scams-fraud/fraud-watch-network) are good sources for information.
5. Monitor your credit and your identity. This is an issue for everyone. Older adults tend to apply for new credit less often, they are also less likely to monitor their credit on a regular basis. AnnualCreditReport.com (www.annualcreditreport.com/index.action) allows reports from all three credit bureaus to be accessed for free each year.
6. Consider hiring a money manager. In our extra-busy lifestyle a daily money manager (DMM) can perform many essential financial services, often at a far lower cost than an accountant or a financial planner. The Philadelphia Fed suggests contacting the American Association of Daily Money Managers (https://secure.aadmm.com) for local DMMs.
7. Consider purchasing financial account monitoring services. These are third-party account monitoring services that help to spot suspicious financial transactions. One company mentioned, but not explicitly recommended, is EverSafe (www.eversafe.com).
Be $ Smart - Act now by implementing at least three of the suggested measures within the next month.
