Talking About Money With Aging Parents

The securities industry watchdog agency, FINRA (Financial Industry Regulatory Authority), recently sent out an investor alert titled, “How to Talk to Aging Parents About Money.” As timely and sensitive as the alert is, it has an important additional purpose: to remind us how vulnerable senior investors are in the increasingly complex world of investments and securities.

Not Talking About Money and Investments Can Have Serious Consequences

Simply reviewing financial statements with parents to see that they are invested suitably and appropriately for their age and risk tolerance can save countless dollars in hard-earned savings

The alert finds that parents typically avoid conversations about money with their adult children, while their children worry about invading their parents’ privacy - and possibly looking greedy - when they ask about money, retirement savings, investments, and inheritances. Our tendency to avoid discussions of money with our aging parents is not just unfortunate, but can have serious financial consequences when things go wrong.

Senior Investors Are The Most Vulnerable to Investment Fraud

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It is well-known that senior investors are more frequently the target of financial scams than any other demographic. After all, they are often the most trusting and least sophisticated investors - making the most obvious targets for predators. However, much more dangerous for these senior investors on a much grander scale are not the headline-grabbing scams. Rather, it is the subtle or not-so-subtle frauds perpetrated by unscrupulous or incompetent financial advisors that cost elderly investors - and by extension, their children and grandchildren - the most. To the tune of tens of millions of dollars per year.

Talking About Money Makes Dollars and Sense

Conversations with aging parents about money can reveal fraud or negligence by financial advisors before things get out of control. Simply reviewing financial statements with parents to see that they are invested suitably and appropriately for their age and risk tolerance can save countless dollars in hard-earned savings. More glaring acts of malfeasance will also be apparent. While reading financial statements can be a daunting task, it is worth the time, energy, and discomfort.

Investment and Securities Misconduct Law Firm

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If you or your loved ones has suffered financial losses as a result of broker fraud or investment misconduct, please contact the securities attorneys at Green, Schafle & Gibbs immediately for a free consultation at 1-215-462-3330 or by using our online contact form.