Here’s a disturbing statistic: One out of every five Americans over the age of 65 has been victimized by a financial scheme, according to the Investor Protection Trust, a nonprofit organization devoted to investor education.
If your parents are in this age group, should you be concerned? And can you help them avoid being “scammed” so that they maintain control over their finances?
The answer to the first question is “yes” — you should be concerned.
Of course, as the numbers above show, most aging Americans are not being swindled, which suggests they can take care of themselves quite well. Still, it’s no secret that many fraud schemes target seniors because of their concentrated wealth and in many cases, trusting nature. And as much as you’d like to think otherwise, your parents could be susceptible to rip-off artists.
Fortunately, in regard to the second question above, you can indeed take steps to help prevent your parents from being fleeced. Here are a few suggestions:
- Observe their behavior. If you live close to your parents, listen closely to any new friends, investment deals or sweepstakes they mention during your normal interactions. If you’re in a different city, try to stay abreast of your parents’ behavior by communicating with them frequently and by checking in with other family members or friends who have occasion to see your parents.
You probably “spam” these without a moment’s thought — and you should urge your parents to do the same. Remind them that any offer that sounds “too good to be true” is, without question, neither “good” nor “true.”
Look for these types of programs in your area, encourage your parents to attend — and even consider going with them.
The more you know about their investments, retirement accounts and estate plans, the better prepared you’ll be to respond helpfully if they mention an action they’re considering taking that, to you, just doesn’t sound appropriate.
And it’s a good idea for you to know their financial advisor, and for him or her to know you, as you may well be involved in your parents’ legacy planning. But if your parents don’t already have a financial advisor, you may want to recommend one to them, particularly if it’s someone you already know and trust.
It’s entirely possible that your parents won’t need any assistance in avoiding financial scams. But, just in case, be prepared to act on the above suggestions. Your intervention could help preserve your parent’s financial independence.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.