Although Mary, a grandmother of four no longer owns a home, she still gets calls from refinancing agencies and so called finance managers even pester her not only with phone calls but through mail as well. With the economic downturn, many illegitimate agencies try to offer bogus financing plans preying on the older generation in hopes of making money the easiest possible way.
Financial literacy is taught to teenagers and many young urban professionals. Older folks however are not updated with what is going on in the financial world –making them an easy target for those who profess to be “lenders”.
For seniors to protect themselves from these finance issues, here are a few tips to take into consideration:
1. Budget and List Your Expenses
Saving enough money is key to a much more comfortable life ahead. Think about things you really do not need to spend on and cut the spending from there. For example, there is no more need for you to maintain that four bedroom house if all the kids now have their own families and their own homes. You can sell the house for a profit and get a smaller apartment –it is easier and cheaper to maintain.
Having enough income will relieve seniors from stressing out because of finances even if a crisis hits. Budgeting and saving enough for retirement is a good thing.
2. Investments
When it comes to investments, seniors should be more careful. As much as possible, do not invest in the stock market if you are not an expert. The stock market goes down faster than it is supposed to go up. Invest in something that does not fluctuate along with the market.
3. Power of Attorney
Before making any decisions, it is highly recommended that older Americans find someone they can trust to manage finances and other legalities. A son or a daughter is a good choice so that seniors can have peace of mind when it comes to their money. As much as possible, do not give anybody else control over finances except your own children because if you do not have enough control over your money, you might find that one day your money is gone.
4. Charities
If you want to help out in your own way with regards to a certain cause, be very careful because even legitimate charities can obtain the right to withdraw from your bank account. Help out in cash, give it to them and do not sign any agreements whatsoever nor should you give out your bank account number.
5. Beware of Phone Scammers
Do not give any personal information to anyone who calls you pretending to be from a legitimate company. These scammers usually call through the relay service – a service that is supposedly for the service of deaf people which allows them to make a regular phone call. The relay service is a legitimate company but somehow, through the advancement of technology, Nigerian scammers have hacked into their system and they pretend that they are deaf people trying to call relatives. The interpreters do not have the power to end the call since it is against federal laws to meddle in the call. The best thing you can do is report this call as soon as possible and never to entertain them anymore especially if you do not know someone who actually uses the service.
6. Retirement
For those who are still planning to retire. Delay your retirement. Figure out first how much money you have in your pension plan and if your retirement income is sufficient, then go right ahead and enjoy your retirement benefits.