Third Annual Financial Literacy Leadership Conference Strategies to Meet the Financial Education Needs of the Elderly

1. Third Annual Financial Literacy Leadership Conference Strategies to Meet the Financial Education Needs of the Elderly Cindy Hounsell, J.D.WISER workshop

2. WISER/AoA Resource Center • Gateway to provide basic retirement information and resources • Focus is on retirement readiness, health and long-term planning • Providing better choices in health care and long-term care/ Choices for Independence • WISER uses stories to make it real • Website is www.wiserwomen.org

3. Learn what you need to know

4. Retirement Needs and Sources of Income • Basic Needs of Retirees 1. Income 2. Medical Coverage & Prescription Drugs 3. Long-term Care • Sources of Retirement Income:1. Social Security • 2. Pensions • Savings & Investments • SSI and other help

5. Innovative Initiatives to reach Aging Populations • Know your audience: Ask questions before you begin • Respect your audience and reflect their values • Consider their lifestyles • Understand the attendees limitations on time or money • Needs to be interesting or at least sound like it will be – use relevant titles • A Day Late and a Dollar Short: Retirement Catch-up Strategies

6. Innovative Initiatives to reach Aging Populations • Working with partners who can deliver – share funding • Be aware of information overload, which can lead to fatigue • Aim for one or twokey points • Follow a description of a problem with steps to take towards a solution– • Reinforce positive action—show how something works, don’t just tell • Make it personal

7. Do I have a deal for you!

8. Cracking the Code A Financial Primer Financial Products for Retirement Security: Financial Abuse and Scams Annuities Reverse Mortgages and, Long Term Care Insurance

9. Financial Scams “ In only a few minutes, an unscrupulous con artist or fast talking advisor can swindle an unsuspecting consumer out of a nest egg that took a lifetime to build. “Unlike muggers and thieves, investment fraud artists don’t take your money against your will; they persuade you to hand it over willingly.” -Office of the Maryland, Attorney General.

10. Scam Scenarios: If it sounds too good to be true, it probably is. • Perpetrators may obtain money or possessions by threat or deceit. • misuse of credit cards, • joint bank accounts, • check cashing without authorization, • theft of pension or benefit check, • transfer of assets.

11. Scams Continued: What to Do • For Clients, Older Parent or Friend: • Discuss scams and make a plan. When there’s a firm plan or a script, the older person will be more likely to resist a persuasive caller or door-to-door sales person. • Advise the person to hang up if the caller is persistent. Or provide a short script. • Make a sign to put by the person's phone or front door that says, “Say No Thanks! My nephew the police investigator will call you back.”

12. Annuities: Fixed Immediate Annuity (Sometimes called a Lifetime Annuity) There are many different types of annuities. • Provides a guaranteed steady stream of income. • You buy it at or after retirement. • The insurance company invests your money and pays you a fixed monthly amount. • The payments begin right away. • The payments continue for as long as you live.

13. What Are the Limitations of Annuities? • If you have little or no savings or assets, you probably will not have enough to purchase an annuity with a big enough monthly amount. • If the annuity you purchase does not have inflation adjustments, your monthly payment will become worth less over time. • Once you buy an annuity the decision is irrevocable. You cannot get back your lump sum. • Don’t sign unless you understand what you are buying. Huge surrender fees.

14. How Should I Shop for an Annuity (and not be scammed)? The two watch words are: PRICE and SAFETY • Use a strong insurer: Annuities are a long-term business so look for a company that will be around. • Look for the best rates: Compare cost and be sure to ask about all fees and expenses. • Check with your State Guarantee Association: Find out what happens in your state if the insurance company goes under.

15. Reverse Mortgages and Abuse • Reverse mortgage allow homeowners to borrow against the value of their homes. • You receive a loan and the equity in your home decreases. • You never have to repay a reverse mortgage as long as you live in your home. • Loan is based on your age and value of your home.

16. Reverse Mortgages • Considered a last resort for house-rich, cash poor seniors. • Loans come due when the homeowner dies or sells the property. • Some retirees use them to start small businesses, travel or pay for grandchildren to attend college.

17. Reverse Mortgages and ScamsBeware! • Using money from a reverse mortgage to buy another financial product. • Buying an annuity with proceeds of reverse mortgages is a new “bad” trend. • Financial Advisors who have no training are preying on elderly at senior centers around the country.

18. Resources • Contact the U.S. Department of Housing and Urban Development (HUD). (877) 234-2717. www.hud.gov/buying/rvsmort.cfm • National Council on Aging–provides counseling– www.reversemortgage.com • AARP Foundation’s Reverse Mortgage Education Project at (800) 209-8085. www. aarp.org/revmort

19. For More Information on Annuities • Go to the WISER website for the publication, Making Your Money Last for a Lifetime: Why You Need to Know About Annuities and lots of other information on women and their money. • The following firms rate the financial strength of life insurers: • A.M.Best Company (ambest.com). • Moody’s Investors Services (moodys.com) • Standard and Poors Insurance Ratings Services (standardpoor.com)

20. Don’t Get Taken by the Title “Senior Certified Financial Planner” • There is no such certification as a “Senior Certified Financial Planner.” Don’t get taken in. Only take advice from someone who has your interest in mind. • There are various types of certification given to people who study and pass tests on investing and demonstrate a certain expertise. • Two of those are: • Certified Financial Planner (CFP) • Chartered Financial Analyst (CFA)

21. Steps for Victims of Financial Fraud to Take • Call your local bank representative immediately. Cancel any credit cards linked to the account and reset your personal identification number. • For local legal services, contact your local Eldercare office and tell them about the problem. For an office near you, call toll free 1-800-677-1116 weekdays 9:00 AM to 8:00PM. Sign up for the National “Do Not Call” Registry by going to www.donotcall.gov to prevent telemarketers from calling a client or senior.

22. Benefits Check UpA Service of the National Council on Aging • Find Benefits Programs • Get all the benefits you deserve. Find and enroll in federal state, local and private programs that help pay for prescription drugs, utility bills, meals, health care and other needs. • Need Help Paying for Food? The Supplemental Nutrition Assistance Program or SNAP helps low-income individuals and families buy the food they need for good health. • Get Eldercare Assistance – Some of the rules have changed so time to check again!

23. For More Information Go To WISER’s Web Site: www.wiserwomen.org