Advice On Helping Seniors Keep Their Finances Safe

by JeanS

posted on 10/15/2009

So you've finally reached retirement age and are ready to kick back and enjoy life. Congratulations! All your life you've worked hard and have saved enough money to do all of those things you've always dreamed of, right?

Unfortunately, that's not the case these days. Thanks to the lousy economy, the nest eggs of senior citizens who have scrimped and saved all their lives are no longer the same size as they were a few years ago. In fact, they are substantially less -- even up to 50 percent less than what they had originally expected to have for their retirement savings. So many retirees have been forced to go back to work to help make ends meet, since their meager social security checks are not covering all of their expenses.

That's one of the reasons it's so important to be aware of financial scams that target one of the most vulnerable populations -- senior citizens. Unscrupulous scam artists target our nation's retirees duping them out of their life's savings with little more than a telephone call or a knock on the door. Because senior citizens are generally trusting, it doesn't take much for them to think that the nice young man at the door is honest -- when he is nothing more than a smooth-talking con artist.

Here are some popular financial scams that are operating today. Be aware of them and make sure you don't do anything to put your hard-earned savings at risk!

Telephone telemarketing scams
These are the scams that are most often trying to separate you from your hard-earned money. So no matter what the person at the other end of the phone says or threatens to do, NEVER give out any personal information to callers, including social security information, bank account or credit card numbers, or even your favorite colors. All of this information, even the most innocuous, can be used to empty out your bank accounts and/or charge thousands of dollars of merchandise to your credit cards.

Medical equipment scams
Unscrupulous medical equipment manufacturers will offer low-cost of free products which are then charged to your insurance company. In many cases, the equipment is not needed, is inferior and even dangerous, or may not even be delivered. Although you may not be "out of pocket" for money, it does count against your deductible and is illegal!

Reverse mortgage or refinancing scams
Don't talk to anyone except a trusted banker, financial planner or mortgage broker about refinancing your home or applying for a reverse mortgage. It is especially crucial that you not speak to anyone who knocks on your door, offering to give you a reverse mortgage, merely for signing on the dotted line. If you are interested in any of these products, deal with a reputable company and have all legal documents reviewed by your own attorney before affixing your signature. Too many seniors have been duped into giving up their own homes by signing papers they did not thoroughly understand.

Investment scams
If someone promises you an interest rate that seems too good to be true, it probably is. Again, scam artists prey on seniors who have accumulated small nest eggs, trying to get them to invest in "get rich schemes." Do not fall for any scheme or financial product that someone tries to sell you, either over the phone, on the Internet or by going door-to-door. If you want a safe and secure place to invest your money, speak with your local banker or trusted investment advisor.

There are hundreds of scams operating and preying on senior citizens. Make sure you are aware of how they operate so you and protect your savings and have the bright financial future you've always dreamed of.

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