As your financial advisor, we want to help you reach your financial goals and support your financial security. That’s why we need to address a growing concern: financial abuse. It’s estimated that nearly $3 billion is stolen each year through financial exploitation, and this figure may be low. While financial abuse certainly affects older adults, it also includes people who are currently facing challenges in making good financial decisions on their own behalf. These challenges include health conditions, stressful situations, or even changes in medications.
Financial abuse encompasses a range of manipulative behaviors. Here are examples:
- Someone you trust influences you to make financial decisions that hurt you and help them. This can include pressuring you to change your will, sign over assets, or make investments against your better judgment.
- Someone steals your money or belongings by gaining or misusing access to these. The offender could be a stranger, handyman, caregiver, or even a family member.
- You lose money due to scams or poor financial choices. This can include falling prey to rip-offs or not actively managing your finances.
How to Protect Yourself:
- Review your finances regularly: Check your bank accounts, investments, and credit cards consistently. Look for anything strange and report this to your institution.
- Discuss your concerns with trusted family members or friends: Share your financial plans with someone you trust and discuss any concerns you may have. As your advisor, we want to know your situation and your concerns so that we can best help you. We also will ask you to give us the name of any trusted contacts with whom you want us to share your information.
- Limit access to your financial information: Only share your financial information with trusted individuals and professionals.
- Consider a durable power of attorney: This legal document allows you to choose someone you trust to make financial decisions on your behalf if you become incapacitated. This is why we ask you if you have a durable power of attorney, and if you do, we also ask if you want us to file this information with Charles Schwab, the custodian for your accounts.
- Be wary of unsolicited contact: Be cautious of unexpected phone calls, emails, or visits from people offering financial advice or investment opportunities. You can, and should, ask us our opinion before you go any further.
- Educate yourself about common scams: Stay informed about the latest swindles targeting older adults, such as phishing (hoax) emails, lottery swindles, and imposter scams. These work because they convince people that they are real. You should call us or someone else you trust to get a second opinion.
If you suspect you are a victim of elder financial abuse, there are people who can help you:
- Contact your local adult protective services agency.
- Report the abuse to law enforcement.
- Consult with an attorney specializing in elder law.
- Call us. We can help you deal with these important situations.
It’s crucial to be active in protecting yourself and your hard-earned assets. So never hesitate to call us if you have any questions or concerns. The earlier we can help you prevent or lessen any issues, the better the outcome may be for you.
You can also visit the following websites for more information about elder financial abuse:
- Financial Exploitation of Older Adults (Social Security Administration): https://blog.ssa.gov/elder-abuse-detection-and-prevention/
- Elder Justice (US Dept of Justice): https://www.justice.gov/elderjustice
- National Center on Elder Abuse: https://ncea.acl.gov/home
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice.
Note: This article is written from the perspective of a financial advisor and aims to provide general information. It’s essential to consult with qualified professionals for personalized guidance on your specific situation.
Eric Ball, CFA
Managing Director
America First Investment Advisors, LLC
Omaha, Nebraska
This post expresses the views of the author as of the date of publication. America First Investment Advisors has no obligation to update the information in it. Be aware that past performance is no indication of future performance, and that wherever there is the potential for profit there is also the possibility of loss.
