Living longer brings a lot to look forward to. More time with loved ones, new experiences, and the chance to enjoy the fruits of your life's hard work are just the tip of the iceberg. With increased longevity, though, comes a new set of challenges, especially when it comes to managing money and protecting yourself from financial threats. If you're in your 60s, 70s, or beyond, or you're helping someone who is, it's never too early to plan ahead. A few smart steps now can help protect seniors’ financial health well into the future.
Understanding the Risks of Cognitive Decline
Aging affects each of us differently, but the odds of experiencing cognitive decline increase with time. Alzheimer's disease and other forms of memory loss become more common in our 70s and especially after 80. These changes can impact decision-making, including how we handle money.
Being aware of these risks doesn't mean you're living in fear; it's just that you're being prepared for all potential outcomes. Planning now makes it easier to maintain control of your finances even if cognitive changes make money matters more challenging down the road.
How to Spot and Stop Financial Scams
Seniors are a common target for scams, and criminals keep finding new ways to take advantage. Fake calls from someone claiming to be with Social Security or Medicare, phony charities, or misleading telemarketing offers are all red flags.
If you ever feel uncertain during a phone call or message, end the conversation and talk it over with someone you trust. Never give out personal or financial details over the phone unless you're sure of who you're talking to.
To stay safer:
- Monitor your bank and credit card statements regularly.
- Set up transaction alerts so you're notified if anything unusual happens.
- Use caller ID and ignore unknown numbers when possible.
- Report suspicious activity to the FTC or local authorities.
Make Managing Money Easier
As the years go on, simplifying your financial life can help you stay in control and avoid oversights. Here are some ways to make it easier:
- Consolidate accounts: Fewer accounts mean fewer statements and less to track.
- Set up automatic payments: Reduce the risk of missing bills or late fees.
- Use direct deposit: Ensures reliable delivery of income and avoids the risk of check fraud or theft.
Working with a CPA can make this process much smoother. A trusted advisor can help review your current setup and make thoughtful changes that protect your financial stability.
Build a Support System
You don't have to handle everything on your own. Open communication with family members or a trusted friend can be a key part of your financial safety net. Consider naming a "trusted contact" on your accounts, someone your financial institution can reach out to if they notice unusual activity.
It's also a good idea to sit down with your CPA and financial advisor on a regular basis. Having a professional who understands your situation makes it easier to adjust your plan as your needs change.
Take Action for Peace of Mind
When you know your finances are in order and you're protected from fraud and confusion, it's easier to enjoy the things that matter most.
Myrick CPA works with individuals and families throughout the D.C. area to help them make wise choices, protect their assets, and simplify their financial lives. If you're ready to build a plan that works for today and tomorrow, schedule a consultation with us and see how we can help.