Category Archives: Personal Finance

Scams for Elderly

By Larry Luxenberg  

Protecting Against Financial Scams

Financial scams are getting much more sophisticated and are a growing problem. It’s easy for anyone to momentarily let down their guard and get nailed. It’s especially easy for the elderly. So much has changed in recent years and the elderly often have a tough time sorting out the legitimate advances from the smooth talking con artists. A recent study showed that the elderly who have been working with a financial advisor or some other trusted advisor are much less likely to fall victim to scams. Financial products have gotten much more complicated over the years. With the advent of cheap computing power it became possible to add many more features to products. Now consumers have choice about everything but it’s much more difficult to sort out what is really important to them, what they need and what they are paying for. As we age, our brains become less agile and can get overwhelmed with this growing complexity. Nowadays, everything comes with an inch thick instruction manual. While there’s no sure way to ward off all scams, the one good rule is that if something sounds too good to be true, be especially wary.  Recently, Financial Planning Magazine ran an article on protecting against scams: http://www.financial-planning.com/30-days-30-ways/protecting-elderly-clients-more-scams-2692756-1.html?utm_campaign=30%20days%2030%20ways-may%202%202015&utm_medium=email&utm_source=newsletter&ET=financialplanning%3Ae4297713%3A1591a%3A&st=email

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False Precision in Financial Planning

By Larry Luxenberg  

Craving Certainty

Recently The New York Times published an article about financial planning and how much people crave certainty. The result is that many financial plans have page after page of numbers and graphs and charts. The more numbers, the more confident people feel about the future.

But these plans can be so overwhelming that many go unused. In the Times article, author  and planner Carl Richards deplores this kind of false precision. He argues that for most people, the future is impossible to predict and plans must be flexible to account for the vagaries of life.

The planning process itself forces people to think hard about their goals and priorities. Often, latching onto a firm goal, even if it’s one that’s difficult to attain, might make success more likely than having a vague but less lofty goal.

Being disciplined and thorough in planning can yield significant results even if the ultimate destination is far removed. Identifying the key variables and options during the planning process can provide a clarity of purpose and a route to get there.

Planning and adapting the plans from time to time are a valuable exercise. Just don’t get too caught up in the details and miss the big picture.

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Financial Affairs — Much More Complex Than Most People Realize

By Larry Luxenberg  

Do it Yourself? — Not!

 
I run into a lot of do it yourselfers who manage their financial affairs adequately, even capably.

But many run into issues and by the time I am called in, it is often too late or significant damage has already been done.

Recently, I’ve been brought it to work on the financial affairs of several people where the need arose unexpectedly. I had to guess the clients’ wishes and scramble for clues to piece together their financial pictures. If we’d had the opportunity to talk for even a short time, the process would have been much more successful and much easier. Other times I’ve come across mistakes where the do it yourselfer didn’t realize he was in over his head.

There’s no buzzer that goes off telling you that you have to make a significant decision or you should look into something that hadn’t occurred to you.

Most people manage their financial affairs one piece at a time without even a list of all the pieces that are required. Each piece, in and of itself may be fine, but the overall structure can collapse if even one critical piece is missing.

Personal finance is much more complex than most people realize. I encourage everyone to learn and be involved with their financial affairs. But I also strongly recommend calling in professionals before the crisis hits.

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