Copyright (c) 2009 Nick Hodges
Rose is a 71 year-old widow. She has raised three wonderful, successful children. Rose has lived a very independent life and has been very secret about her money matters.
Her problem? Rose was about to get SCAMMED! And none of her adult children knew enough about what was happening in her financial world to help her.
Rose has been a tax client of mine for almost 20 years. Last March, Rose called me in a panic, describing a situation that caused me great concern, she said:
"My financial advisor assigned me to a young man in his office about a year ago. I do not know him real well, but he just called me and told me that my retirement investment has just come "due" and that I MUST roll it over right away. He told me that I had to come to his office TODAY to sign the paperwork."
I had never heard of a retirement investment like Rose's as having a "due" date requiring immediate rollover. I knew that Rose did not have her retirement funds in a CD, which does have a maturity date necessitating reinvestment. I asked Rose to come to MY office that afternoon so that I could review her investment in better detail. The information Rose brought with her to our meeting confirmed my suspicions. That in fact, her retirement investment did NOT have a "due" date and furthermore, this agent had deliberately misrepresented the management of this investment in Rose's mind to be like a CD, solely to generate a new commission.
As I explained this to Rose, it became clear to me that she was struggling to remember the details of her retirement account. I noticed that she was no longer the quick-thinking woman I had first met 20 years ago. I realized that Rose was in my office because she trusted me: she knew that I would understand her situation and that I would watch out for her best interests. And I was glad that Rose had called me instead of "rolling over" her retirement account.
I then had a conversation with Rose that I have had with so many of my older clients and friends. It is a difficult conversation about life and age and forgetting, and how anything new becomes so much harder to deal with as we get older. I am not really sure Rose heard all my words, but she did recognize that she needed help. I got Rose's permission to call her adult children in for a family meeting.
As we gathered together, I clarified to everyone that Rose did not need someone to take complete control of her finances; she just needed a little help and oversight. I explained to them that I could help Rose get all her financial information in one place, and with her permission, each adult child could check on her financial world with just a few clicks from any computer in the world. Since no trading could take place in this online environment, no changes could be made without Rose's direct approval.
Needless to say, Rose is much happier today, working with people she knows are watching out for her. We've helped set up her financial world in a secure, online environment. Rose's adult children are happy, too. They can keep an eye on Mom, while allowing her the independence and dignity she deserves.
As your parents and grandparent age, it's important to remember these points:
1. Do not expect that older parents will always remain as sharp and aware as they once were.
2. Watch for confusion or stubborn refusal as alerts that they may need some additional help.
3. Unscrupulous advisors prey on confusion, employing isolation tactics and 'act now' urgencies. Teach your loved one to alert you if this happens to them.
4. Family money issues are often emotionally volatile, leading participants to make wrong or impulsive decisions.
5. Working with a trusted professional helps keep family emotions to a minimum and surfaces workable solutions.
6. Utilizing secure, online financial service programs can help your loved one consolidate their important financial information, protecting them from losing touch with what's important in their world and simplifying things for the future.
7. Act before your loved one becomes confused about their financial world by building a relationship now with a trusted professional. Make sure it's someone you all feel comfortable with to help guide their future.
We have all heard horror stories about older investors being parted from their life savings by unscrupulous advisors like Bernard "Bernie" Madoff. Act today to protect your loved one from being scammed. Bring your entire family closer together by utilizing available technology and a qualified professional BEFORE a problem happens.
Rose is a 71 year-old widow. She has raised three wonderful, successful children. Rose has lived a very independent life and has been very secret about her money matters.
Her problem? Rose was about to get SCAMMED! And none of her adult children knew enough about what was happening in her financial world to help her.
Rose has been a tax client of mine for almost 20 years. Last March, Rose called me in a panic, describing a situation that caused me great concern, she said:
"My financial advisor assigned me to a young man in his office about a year ago. I do not know him real well, but he just called me and told me that my retirement investment has just come "due" and that I MUST roll it over right away. He told me that I had to come to his office TODAY to sign the paperwork."
I had never heard of a retirement investment like Rose's as having a "due" date requiring immediate rollover. I knew that Rose did not have her retirement funds in a CD, which does have a maturity date necessitating reinvestment. I asked Rose to come to MY office that afternoon so that I could review her investment in better detail. The information Rose brought with her to our meeting confirmed my suspicions. That in fact, her retirement investment did NOT have a "due" date and furthermore, this agent had deliberately misrepresented the management of this investment in Rose's mind to be like a CD, solely to generate a new commission.
As I explained this to Rose, it became clear to me that she was struggling to remember the details of her retirement account. I noticed that she was no longer the quick-thinking woman I had first met 20 years ago. I realized that Rose was in my office because she trusted me: she knew that I would understand her situation and that I would watch out for her best interests. And I was glad that Rose had called me instead of "rolling over" her retirement account.
I then had a conversation with Rose that I have had with so many of my older clients and friends. It is a difficult conversation about life and age and forgetting, and how anything new becomes so much harder to deal with as we get older. I am not really sure Rose heard all my words, but she did recognize that she needed help. I got Rose's permission to call her adult children in for a family meeting.
As we gathered together, I clarified to everyone that Rose did not need someone to take complete control of her finances; she just needed a little help and oversight. I explained to them that I could help Rose get all her financial information in one place, and with her permission, each adult child could check on her financial world with just a few clicks from any computer in the world. Since no trading could take place in this online environment, no changes could be made without Rose's direct approval.
Needless to say, Rose is much happier today, working with people she knows are watching out for her. We've helped set up her financial world in a secure, online environment. Rose's adult children are happy, too. They can keep an eye on Mom, while allowing her the independence and dignity she deserves.
As your parents and grandparent age, it's important to remember these points:
1. Do not expect that older parents will always remain as sharp and aware as they once were.
2. Watch for confusion or stubborn refusal as alerts that they may need some additional help.
3. Unscrupulous advisors prey on confusion, employing isolation tactics and 'act now' urgencies. Teach your loved one to alert you if this happens to them.
4. Family money issues are often emotionally volatile, leading participants to make wrong or impulsive decisions.
5. Working with a trusted professional helps keep family emotions to a minimum and surfaces workable solutions.
6. Utilizing secure, online financial service programs can help your loved one consolidate their important financial information, protecting them from losing touch with what's important in their world and simplifying things for the future.
7. Act before your loved one becomes confused about their financial world by building a relationship now with a trusted professional. Make sure it's someone you all feel comfortable with to help guide their future.
We have all heard horror stories about older investors being parted from their life savings by unscrupulous advisors like Bernard "Bernie" Madoff. Act today to protect your loved one from being scammed. Bring your entire family closer together by utilizing available technology and a qualified professional BEFORE a problem happens.
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