Seniors as much or more than anyone can benefit from assistance with
their personal finances. With age can come a slowing down, a greater
forgetfulness, and a general lowering of capacities in certain areas,
including those relevant to making sound decisions about one's finances.
There are certain signs that one who cares about an elderly person-or a
self-aware elderly person himself or herself-might spot that indicate a
reason to consider seeking assistance with personal finance matters.
Are things being left undone? Unpaid bill notices, letters from the
Internal Revenue Service (IRS), etc. could mean the person is having a
problem keeping up with their financial responsibilities. It could be
forgetfulness, a tendency to make mathematical errors, vision problems,
physical difficulties writing checks, or other issues.
Is there
evidence of financial scams? If a person receives way more than usual
junk mail or telemarketing calls, it could be an indication they're on a
"suckers" list because they've responded to such scams in the past. If a
person has written checks to unrecognizable companies and individuals
out of state or worse yet out of the country, if they speak favorably
about supposed investment opportunities that earlier in their life they
surely would have been wary of as too good to be true, there's a good
chance their judgment is impaired and they're being taken.
Is
there a new "friend" on the scene, a little too eager to "help" an
elderly person with financial matters? Very few elderly folks are lucky
enough to have an Anna Nicole Smith
to enjoy for a few years in exchange for a chunk of their money-more
often it's a garden variety con artist who's insinuated himself or
herself into their life and gradually gained more and more influence
over them and their financial affairs.
There are a number of steps that can be taken to safeguard an elderly person's personal finances.
Many processes can be automated, such as bill paying directly from
one's bank account, or having Social Security and pension checks direct
deposited. The "no-call" telemarketing list, caller ID, and a good
e-mail junk mail filter are among the measures that can cut down on scam
solicitations. If you care about an elderly person, you can stay on the
alert about newcomers to their lives (or even less than scrupulous
family members and such) who are showing just a little too much interest
in their finances, and you can warn the person early before the
newcomer fully has their hooks in them.
However, though of
course an elderly person should be protected from turning their
financial affairs over to a con artist, at the same time it may indeed
be advisable for an elderly person to turn over some or all of their
financial affairs to someone more appropriate as they become less able
to handle them themselves. Or if not to turn over the actual decision
making, at least to seek financial guidance and advice from someone
knowledgeable about their situation.
One option is to rely on a
family member or friend. This should only be done with great caution.
The person relied on should have proven over the course of a long
relationship to be trustworthy and to be knowledgeable and responsible
about money matters. It should also be someone who will handle the
affairs in as open as possible a manner, so that other friends and
family members are always aware what's being done and thus can provide
an additional safety check.
But depending on one's circumstances, the better option could be to hire an actual financial planner.
If you go this route, however, it's important to hire a reputable,
licensed individual or firm. Don't respond to slick marketing from
people calling themselves "financial planners" who may have no
credentials and who may indeed have far greater skills at marketing than
financial planning.
It is advisable instead to find a financial
planner through a professional association or regulatory body. Good
places to start are the Certified Financial Planner Board of Standards, Inc., the Financial Planning Association, and the National Association of Personal Financial Advisors.
Any of these can help connect an elderly person with an appropriate
financial planner, rather than someone who will take advantage of them.
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