Financial Planning

Elder Financial Exploitation

Jacob Cavaleri

Did You Know?

Each year, more than 3.5 million older adults are victims of financial exploitation and are swindled out of more than $3 billion altogether. The average loss per person is $34,200.

The Older Americans Act defines elder financial exploitation broadly as “the fraudulent or otherwise illegal, unauthorized, improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an older individual for monetary or personal benefit.”

This form of exploitation can be found across all social, educational, and economic boundaries. A humbling example that may hit close to home for some people is Cindy McBride’s story.

Her formal name may not sound familiar. Arizona sports fans often refer to her as “Flag Lady”— yes, the same lady we have watched for years, wave her flags in the upper deck of Chase Field, home of Diamondbacks baseball. She fell victim to a Facebook scam in which someone posed as an Air Force general, gained her friendship and trust, and swindled her out of nearly $200,000.

Sadly, such scams (via telephone, mail, social media, and email)  are common. The perpetrators of elder financial exploitation can be anyone. Often the crime involves theft of money or property by those you’d least expect, including family members, caregivers, and financial advisers.

Not all people who fall victim of these exploitations are as vocal about it as McBride. Hopefully her situation can serve as a source of caution and a way to begin a conversation with loved ones about the risks.

In most instances of suspected elder abuse, including financial exploitation, you should contact adult protective services. If the older person is in danger or a crime has been committed, call 911.

Click here to learn more and get tips for protecting yourself and your loved ones.

 

 

By |2022-08-23T12:59:01-07:00August 25th, 2022|Cyber Security, Financial Planning|

Conquer Your Paper Piles

Shannon Curkendoll - conquer your paper pilesWe’re living in an electronic age. Yet, many of us still have piles of paper throughout our homes. Money and finances are the biggest culprits when it comes to paperwork – bills, bank statements, insurance records, loan documents, investment accounts, and the list goes on. Here are some guidelines to help conquer your paper piles.

Sort and Organize

Tackle one pile at a time, and sort papers into  categories, like Pay, Read, File, Shred, and Recycle. You may find important receipts, unpaid bills, and other important items you didn’t realize were there. You’ll also probably find a lot of things you don’t need to keep. This flow chart can help you sort and organize.

Convert to Electronic

Once you’ve sorted your piles, you’ll probably find items and accounts that can go electronic. At Perspective, we converted client files to a secure online portal years ago (which clients can access at here). Important items like estate planning documents, insurance paperwork, and loan documents can be scanned and uploaded to your Perspective document vault.

Things like your credit card, phone, and utility bills can be managed online with text/email notifications or auto-pay.

After you’ve sorted your documents and determined which ones you need to keep in printed form, designate an easily-accessible place in your home where they can be filed and stored.

Adulting Checklist

College graduates everywhere are celebrating their achievements and embarking on their next journey. Now is the time to think about financial planning. The earlier one starts, the greater the odds for success now and in the future. The following adulting checklist can help.

adulting checklistBegin by creating a budget.

Understanding how much money you earn, how much you spend, and most importantly, where you spend, is critical.  Gather your financial statements and create a list of monthly income, fixed expenses (i.e., rent, debt payments), and variable expenses (i.e., food, gas, entertainment).

Next, divide your income into three categories. A good starting point is 70 percent for living expenses/debt, 10 percent for fun/gifts, and 20 percent for saving/investing. Don’t spend more than you earn.

It’s a good idea to review your budget monthly to ensure you’re on track or to make adjustments as needed.

Key Budget Elements

Be sure to incorporate the following steps into your budget and financial plan:

  • Start saving. Automatic saving of your paychecks with direct deposit is easy and effective. Most employers will allow you to split up direct deposits, so you can save percentages to your checking account, savings account, and a retirement plan.
  • Build an emergency fund. Having cash on hand for unexpected expenses (i.e., car repairs, veterinary bills) builds financial stability and reduces anxiety.
  • Buy disability insurance. Your biggest asset as a young person is your ability to earn an income. Protect that earning potential with disability insurance, which helps cover your bills if you experience a major physical or mental health event and can’t work.
  • Eliminate debt. Student loans, car payments, credit cards – most people accumulate debt at some point. The sooner you can eliminate that debt and begin paying expenses with income cash and savings, the sooner you’ll build a strong financial foundation for the future.

Finally, you’re never too young to work with a financial planner. Whether you just want help getting started or want more in-depth guidance, the Perspective team can help.

To learn more, watch our 2-minute video on the Six Elements of Financial Planning.

Photo by Canva.com
By |2022-06-06T15:36:05-07:00May 23rd, 2022|Financial Planning|

Health Trends and Long-Term Planning Needs

McCann-WEBLife expectancy and health trends are constantly evolving. Recent data from the Alzheimer’s Association validate why financial planning is more important than ever. Keep reading to learn how health trends and long-term planning needs go hand in hand.

Deaths from Alzheimer’s more than doubled between 2000 and 2019, while those from heart disease decreased. Alzheimer’s kills more people than breast cancer and prostate cancer combined. Progression is slow and can be uncertain. People age 65 and older survive an average of four to eight years after a diagnosis of Alzheimer’s, though some live as long as 20 years.

Preparing for long-term care is an important part of your financial planning process. After diagnosis of a serious illness, your options become more limited.

Alzheimer’s and other forms of dementia take a devastating toll – not just on those with the disease, but on entire families. Research shows that millions of care contributors make enormous personal financial sacrifices every day, including cutting back on important necessities for themselves and their families.

About 80 percent of the help provided to older adults in the United States comes from family, friends, or other unpaid caregivers. About 25 percent of dementia caregivers are “sandwich generation” caregivers, meaning they care for both an aging parent and at least one child.

Many people have misconceptions about what expenses Medicare and Medicaid cover, leaving them unprepared to handle the tremendous costs associated with the disease. An Alzheimer’s Association survey found 13 percent sold personal belongings, such as a car, to help pay for costs related to dementia. Nearly half tapped into savings or retirement funds, and 11 percent cut back on spending for their children’s education.

It doesn’t have to be that way.

There are a variety planning options that can help preserve your income and investments, while ensuring you and your loved ones will not have to sacrifice quality care or basic life necessities in the event of a long-term illness. Your advisor can help you explore and understand those options, and develop a plan that fits your needs.

Women Celebrating BirthdayLiving with Alzheimer’s

♦ An estimated 6.5 million Americans are living with Alzheimer’s; two-thirds are women.

♦ African-Americans are about two times more likely to have Alzheimer’s than Whites; Hispanics are one and one-half times more likely.

♦ People living with Alzheimer’s or other dementias have more skilled nursing facility stays, more home health care visits, and twice as many hospital stays per year as other older people.

Source: Alzheimer’s Association
By |2022-06-06T15:36:31-07:00May 9th, 2022|Financial Planning, Health Care, Insurance|