In “How Scammers Try to Steal Money from Seniors,” The Motley Fool listed different types of fraud that seniors should be aware of—not to frighten anyone but to let readers know how to avoid having dishonest people rob them of their retirement savings.
Investment fraud: The Motley Fool points out that both fly-by-night scammers and long-term scammers who develop “a veneer of respectability” perpetrate investment fraud. You should be able to ask questions and get answers about your investments. Be wary of anyone who is not willing to explain how an investment will work and simply encourages you to invest, no questions asked.
Power of attorney: One important piece of advice in this article is that seniors should not wait until they are in the hospital to decide about power of attorney. You do not want to be pressed into making this decision when you are ill and not at full capacity.
You should also be aware that there are different levels of power of attorney. You can just grant someone the power to pay bills or you can give someone power of attorney over all or some of your investments and finances.
Sometimes scammers are able to successfully commit fraud because no matter what our age, we are reluctant to ask for help. If you are older, you may resist consulting someone about something that seems not quite right because you want to make your own decisions. Part of what scammers do is instill a sense of urgency so that you will not take time to find out if what they are offering is legitimate. You may not want to ask for help because you may think it will make you seem senile. But rather than worrying about wounded pride, you should be concerned about losing the nest egg you work so hard to build. Find a Fee-Only financial planner you can trust. They are without commission-related conflicts of interest and dedicated to providing you with options and opportunities that are the right fit for your needs.