During your career, you might have worried about the health of your retirement fund, and whether you would be able to retire one day. But once you have made the leap into retirement, does that mean you don’t have to worry anymore? Of course not. Retirees face a number of challenges, and unfortunately one of those is the risk of fraud. Con artists frequently try to take advantage of retirees, but you can take the following measures to protect yourself.
Simplify. We all know that we face the risk of declining mental acuity as we age. But when will it start? It can be very difficult to see the signs in yourself. One way to prevent financial problems is to simplify investments before you begin having trouble with managing them. As you grow older, you might find that it is easier to put all of your money together, where it is more stable and easier to oversee.
Get rid of credit cards. If you hold multiple active credit cards, you might not notice one is missing until it’s too late. Reduce your card count to one or two that provide good benefits, and get rid of the others.
Designate someone with power of attorney. Choose a trusted, responsible person and grant them durable power of attorney in the event of your capacity. If an accident or sudden illness occurs, it could be too late to make this decision. It’s usually a good idea to choose someone other than your spouse, who is probably about your age and subject to the same health problems. Consider an adult child or trust, younger friend instead. Make sure this person understands your financial situation, risk tolerance, long term plan, and so on.
Take advantage of technology. Set up email alerts with your financial institution, so that you and your power of attorney receive notifications any time large transactions are conducted. This will help to protect you from con artists, and from yourself in case dementia occurs.
Consult with your financial advisor on a regular basis. Perhaps the best way to protect yourself from fraud is to establish a solid long-term financial plan, and stick to it. Discuss any new ideas with us first, so that we can help you assess its validity and steer you away from trouble.
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