It is quite common for seniors to be taken advantage of financially. As people age, their mental faculties are decreased, they become more trusting and optimistic, and they might not be as adept at making decisions. This makes them particularly susceptible to fraud and it’s important to know good practices to avoid it happening to you.
Only Buy From Reputable Companies
As you amass more wealth, you might want to turn to investing to help grow your money. If this is the case, you’ll end up purchasing some financial products. It’s important to only buy these products from reputable companies. Working with these companies can help you avoid fraud because they are trusted by many and are properly vetted. Make sure anyone you work with is properly licensed and ask them to prove it if necessary. You want to carefully choose a financial advisor so you can remain safe.
Read the Fine Print
While it does take extra time and effort, it’s a wise idea to read the fine print of any contracts before you sign anything. When reading over contracts, it’s easy to focus on the benefits you’ll receive. The fine print is where most of the drawbacks will be located, including extra fees, exclusions, and more. Reading the fine print can also help you see if you are being taken advantage of. For example, there are predatory loan services out there that use fraudulent tactics to take advantage of people financially. Predatory loans often have high fees and interest rates. Identifying these and other factors can help you avoid being taken advantage of.
Be Aware of Common Scams
People will try to take advantage of seniors because they believe it to be easy. If you want to stop fraud from occurring, you need to be aware of common scams and practices. Many scams will use relationships to get to your money. Someone might call pretending to be a grandchild in trouble and in need of money. Others will engage in online dating, claim to be in love, and then begin siphoning money. People may also claim you’ve won the lottery, that they’re collecting money for charity, or that they are offering you much-needed home repairs. In every situation, it’s important to ask lots of questions and thoroughly vet people before giving any money.
Unfortunately, some people will target seniors due to their age and status in life. If you want to keep yourself and your finances safe, you need to educate yourself on finances as a whole and especially on good practices. Doing so can protect you from fraud.
Read this next: How to Protect Yourself against Wild Market Swings in Retirement
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