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The Go-To Guide for Saving Our Seniors

June 26, 2022

The month of June commemorates Elder Abuse Awareness Month. Millions of elders in the United States are becoming targets for elder abuse, particularly financial abuse and exploitation. It is estimated that elders in the United States lose at least $2.6 billion dollars on an annual basis as a result of financial exploitation. With such a large amount of money on the line, thieves and scammers create sophisticated strategies to take advantage of one of our most vulnerable populations. Sadly, the perpetrators can often times be someone close—such as family members! Whether you are a senior citizen yourself, or you have elderly parents, grandparents, or neighbors, you must take the appropriate steps to prevent yourself or others from falling victim to financial exploitation.

Spot the Red Flags:

• Unexplained fluctuations in bank accounts, including unusual spending behavior.

• Large gifts made to others.

• Modifications to an existing will or power of attorney.

• A sudden change in mood, and the refusal to discuss financial concerns.

• Unusual use of credit cards, frequent ATM withdrawals, or checks made out to “cash.”

• New people or long lost family members reappearing in the elderly individual’s life.

• Changes to financial documents, such as insurance policies or retirement accounts.

• Rushed financial decisions.

• Annuity sales that do not make financial sense based on the elderly individuals age.
Prevention

• Create a “team” of professionals who are acutely aware of your financial position by obtaining a Certified Financial Planner® Professional, Certified Public Accountant, and an attorney. You will definitely want these trusted advisors in your corner should you fall victim to financial exploitation.

• Elders are highly targeted through Internet and e-mail due to the perception that they lack awareness in the realm of technology. Always be cautious when utilizing the Internet and never share personal information unless it is to a trusted party.

• Legitimate governmental agencies, such as the Internal Revenue Service, will never make unsolicited calls to retrieve your personal information, like bank account numbers and Social Security numbers. Hang up immediately!

• Communicate with your loved ones, friends, family and neighbors. Isolation can increase the risk of financial exploitation, so it is imperative that elderly citizens have a network of trusted individuals that check in with them regularly.

• Never make rushed financial decisions or sign documents you don’t understand. Obtain the specifics of financial agreements and acquire a second opinion by sharing it with your trusted advisor.

• Sometimes it is too good to be true! Learn more about frequent scams that target elder individuals. For example, scammers will target elderly victims by tricking them into believing that they have won a generous amount via lottery or a sweepstakes. Do not pay a fee or “taxes” to collect these so-called winnings.

• Authorize your financial institutions to contact trusted individuals regarding unusual financial transactions.

If you are an older adult, be proactive and take the necessary steps to reduce your risk to financial abuse. You may optimistically believe that it won’t happen to you, but it could! Financial abuse can have long lasting effects on not only your life, but your loved ones’ lives as well. If you are aware of active elderly abuse, or there is cause for suspicion, by Texas law, it is required that you report the elder abuse. To report elder financial abuse, contact the Adult Protective Services at 800-252-5400 or online at TxAbuseHotline.org.

Published in the Victoria Advocate

Carlee H. Gibbs, CPA is a staff accountant for Keller & Associates CPAs, PLLC.

 

https://kmhwealth.com/wp-content/uploads/2022/06/senior-saving.png 247 500 KMH Wealth http://kmhwealth.com/wp-content/uploads/2018/10/KMH-logo-color2-300x88.png KMH Wealth2022-06-26 18:56:042022-08-30 20:35:53The Go-To Guide for Saving Our Seniors

Making Lemonade out of Market Lemons

June 12, 2022

The stock and bond markets’ performance to date for calendar year 2022 has seen a sizable pullback in the markets and left investors searching for when things may improve. Elevated inflation levels, a Federal Reserve aggressively raising interest rates, Russia’s invasion of Ukraine and energy market supply and demand uncertainty has left most investors feeling the market has delivered them a basket full of lemons.

However, all is not lost and there are opportunities in any market. I will highlight two separate interactions from the past few weeks with clients who have decided to implement financial planning strategies to turn market lemons in to long term lemonade.

The first client is a man named Rick who works at local plant and is in his late 30s. Rick has recently received a pay raise from his employer. Rick called to ask my thoughts on the market and if there’s anything he should be doing. Knowing that Rick is a diligent saver and is cash flow positive, I advised Rick to contribute an additional $500 per month over his current 401(k) contribution to take advantage of being able to purchase more investments in his 401(k) at reduced price levels. Who doesn’t like bargain shopping?

The second client is a woman named Leslie who is a recent retiree from the oil and gas industry in her mid-60s. Leslie was a high earner for most of her career and accumulated a substantial portfolio to sustain her retirement. Most of Leslie’s savings are in IRA accounts that will be subject to required distributions and income tax beginning at age 72. Leslie has delayed Social Security until age 70 to maximize her benefit. Leslie is concerned with income taxes in retirement related to the large required IRA distributions and how that will subject more of her Social Security benefits to income taxation as well as increase the cost of her Medicare premiums. Leslie and I discussed the value of a regimented Roth conversion to address all of her concerns. Leslie agreed and is in the process of implementing an annual Roth conversion regimen.

These are two recent, but stark examples of how sound financial planning, even in the midst of uncertain and down markets, can result in sweet success for your long term financial plans.

Published in the Victoria Advocate

Kyle W. Noack CPA/CFP® is a managing member of Keller & Associates CPAs, PLLC and KMH Wealth Management, LLC.

https://kmhwealth.com/wp-content/uploads/2022/06/Untitled-design-24.png 247 500 KMH Wealth http://kmhwealth.com/wp-content/uploads/2018/10/KMH-logo-color2-300x88.png KMH Wealth2022-06-12 19:43:032022-08-08 14:02:06Making Lemonade out of Market Lemons

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