Jul. 20, 2006 - Protecting Mom and Dad

The July 2006 issue of Money has a fantastic article titled Keeping the Bad Guys Away from Mom & Dad.  Every family should read and discuss this article.  It could save your family much money and heartache.

This article dovetails perfectly with what I wrote in It Can't Happen to Me yesterday.  The point being that very nice, intelligent people can be taken in by scammers, especially the elderly, to the tune of more than 5 million senior citizens per year.

And it's not for the reasons you might assume -- old age or senility.

Instead, scammers use high pressure sales tactics or develop trusting social relationships to pry money out of even the most cautious, savvy, and sophisticated seniors.

Common Scam Techniques:

• "Free" Investment or Estate Planning Seminars - usually selling annuities, viatical statements, promissory notes, trusts, or other high commission/fee investments or legal products at seminars offering a free lunch or dinner.

• Telemarketing Scams - typcially sweepstakes, phony charities, free vacations, etc.

• Affinity Fraud - normally a scammer tries to sell dubious investments after gaining a person's trust through participation in a social group or organization.

Seniors aren't the only targets of such scams.  You might have had similar pitches made to you.

Read the article.  Have your parents read the article.  Learn the warning signs of a scam, how to protect your family, and what to do if someone in your family becomes a victim.

Don't be afraid to discuss the topic of your parent's money with them.  Keep the door of communication open.  Let them know you care and that you're always there for a "second opinion" if they're ever tempted by a "too good to be true" offer or investment.

Your folks have lived long, worked hard, and saved their money to get to this point in life.  Don't let an opportunistic scammer destroy your parent's dreams in one careless moment.

Sep. 4, 2006 - free dinners and lunches are bad news?

Sep. 5, 2006 - Reply to Anonymous in PA