Are you going broke in retirement?

going broke

Three best ways to go broke in retirement

by Robert Laura,

June 28, 2017

“Nobody heads into retirement with aspirations of filing bankruptcy, becoming dependent on family and friends, or asking ‘why me.’  Unfortunately, some people end up in the poor house for a number of reasons.

One of the fastest ways to go broke in retirement is from medical bills.  I learned this several years ago when I was an approved bankruptcy counselor.  Basically, there was a requirement in my home state that anyone filing bankruptcy had to take a financial management course.

I set up my program with the expectation of being a light for young people who had made some bad financial decisions.  However, I was horrified when my primary audience turned out to be retirees who couldn’t afford their medical bills.  They were not only in bad physical shape, but no amount of financial counseling and budgeting would have or could have changed what happened to them.

In fact, A 2015 Harvard University study showed that medical expenses account for approximately 62% of personal bankruptcies in the US. To make matters worse, studies indicate that seniors are the fastest growing demographic in bankruptcy filings and a whopping 72% of those who filed due to medical expenses had some type of health insurance.

That makes it more important than ever for people approaching retirement to avoid putting off or delaying their plans to start eating better, establishing that exercise routine, and dropping a bad habit.”

Read about two more ways of going broke in retirement

Elderly scams – don’t be a victim

elderly scams

7 tricks fraudsters use to entrap the elderly

by Steve Vernon, Money Watch

April 25, 2017

“Financial fraud is common today — no one is immune to solicitations from fraudsters. Chances are very good that one of these criminals has targeted you or a loved one recently.

Fraudsters go after older adults because they’re believed to be more trusting and socially isolated. Plus, they often have more assets to exploit. Bad guys rely on very common strategies to take advantage of their marks. ‘Recognizing these persuasion tactics will go a long way toward preventing you or a loved one from being victimized,’ said Marti DeLiema, a post-doctoral fellow at the Stanford Center on Longevity.

DeLiema is one of the nation’s leading experts on financial fraud of the elderly. Here she describes seven tricks scammers use on their victims.

  1. Emotional arousal
  2. Scarcity
  3. Source credibility
  4. Social consensus
  5. The norm of reciprocity
  6. Distraction
  7. ‘Landscaping’

These seven tactics aren’t unique to financial fraud. You experience them often when deciding between legitimate goods and investments. The problem is that fraudsters also use these same persuasion tactics for illicit purposes. If you recognize these influence strategies, you can significantly protect your money from financial predators, legal or criminal.

DeLiema summed it up with great advice: ‘Get into the habit of using these suggested defenses for all important transactions to help you get the most from your hard-earned money.'”

Read more details on elderly scams and suggested defenses

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