Financial Tips

In 2022, Phyllis Wiseberg, a 90-year-old widow lost $20,000 when cybercriminals withdrew the money from her account. Her story, shared by the National Council on Aging, is devastating, but unfortunately not uncommon. Financial exploitation is a reality many seniors face, especially in the age of online scams. Here are actions you can take to help financially safeguard your loved ones.

What can I do to prevent elder fraud?
Communicate. In a post-pandemic world, it’s easy to lose touch, but maintaining communication is key. Remind your loved ones to avoid disclosing personal financial details via email, phone, or text. Sign them up for the National Do Not Call Registry and have a candid conversation about the most common scams targeting seniors.

Designate trusted contacts. Connect with their financial institution for information on adding a trusted contact (or a view-only user) to their account — this is someone who can be contacted if there are questionable transactions taking place or if they can’t be reached. This is a safer alternative to a joint account which allows someone to withdraw funds directly.

Monitor accounts. Vigilance is easier with tech support. Set up online tools designed to detect suspicious transactions, fraud, and identity theft. Some programs will walk you through reporting and recouping any losses that have occurred.

Appoint financial power of attorney. If your loved one becomes incapacitated, it’s crucial they be financially safeguarded. Bypass the standard power-of-attorney form and enlist the help of a lawyer to customize the form according to their needs, whether it’s filing taxes or managing property. Free and low-cost options are available through Eldercare Locator.

Vet caregivers. If you’re seeking aid for healthcare or home management, hire someone through a bonded agency that utilizes a rigorous screening process. Be vigilant during the post-hire period as well—requesting updates regularly and observing in-person when possible.

What can I do if elder fraud has occurred?
Alert financial institutions. Contact their bank, credit union, or wire transfer service to request a cancellation or reversal of any fraudulent transactions if possible. At minimum they can actively monitor their accounts. You can also alert the Social Security Administration and the major credit bureaus (Experian, TransUnion, Equifax) to limit damage incurred from instances of identity theft.

Report abuse. If you suspect your loved one is being exploited, report it to your local Adult Protective Services agency (which may have a different name depending on where they live). APS connects to social service programs advocating on behalf of older and disabled adults who need assistance. You can also report abuse to their local District Attorney’s office and request they prosecute the responsible party. If the fraud involved an online scam, report it to the Federal Trade Commission or the U.S. Postal Inspection Service (for mail scams).

Offer support. Victims of financial exploitation often experience deep shame or grief. Be patient as they process their emotions and be vocal in your support while you help navigate next steps. Proactive gestures — like running errands or planning family events — can minimize stress.
Create a game plan. Consider setting up regular family meetings to address budgeting, bill payments, or any lingering financial concerns moving forward. GreenPath Financial Wellness offers worksheets and guides that can help get you started.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.

Wheelhouse Individual Retirement Accounts (IRAs)* serve as tax-advantage investments that earn significantly higher dividends than a traditional checking or savings account. The rates and returns are more stable and less risky than other forms of investments, so you can spend more time enjoying life and less time worrying about the future.

Wheelhouse offers two types of IRAs: Traditional and Roth. It might seem difficult to navigate their differences, so we’re here to help break it down.

With a Traditional IRA, you pay taxes later. Contributions to your Traditional IRA are tax-deductible, meaning you do not pay income taxes on the deposits going in. Thus, your investments grow tax-deferred. When you’re ready to withdraw during retirement, you will pay federal income taxes on your contributions and earnings.

With a Roth IRA, you pay taxes now. The contributions you make to your Roth IRA are after-tax, meaning you pay income taxes on the deposits going in. Because of this, the investments grow tax-free. When you withdraw your contributions and earnings during retirement, you will pay no federal income taxes on your withdrawals.

Which is right for you?
Choosing between a Traditional and Roth IRA is as simple as asking yourself, “Do I want a tax break now or a tax break later?”

In general, if you believe you are at a lower tax rate today than you will be when you withdraw your funds, a Roth IRA might be better suited for you (AARP). Traditional IRAs are usually the right choice for high-income earners who are currently in high tax brackets, whereas a Roth IRA might be ideal for average earners who will likely stay in the same or move up in income brackets as their lives progress.

There are additional differences to account for as well, including when funds can be withdrawn without penalties. Generally, Roth IRAs have more flexible withdrawal rules. As always, consult with your tax advisor to determine which IRA option is best for you.

To get started or to learn more, visit our website or speak with a Wheelhouse professional at 619-297-4835

*Wheelhouse IRA deposits are federally insured by the NCUA. Please consult your tax advisor regarding any IRA account. Other terms and conditions may apply. Membership is required.

By GreenPath Financial Wellness

New Year’s resolutions are a mixed bag for many of us. On the one hand: personal betterment! On the other hand: methodical auditing of our refrigerator, checking account, and various vices. On the cusp of a fresh calendar year, we feel compelled to immediately transform our lives, but—as is the case with most good things—change takes time. This is especially true when it comes to financial goals. And in the aftermath of steep holiday spending, our goalposts can feel…far away.

If you want a few financial resolutions that you can achieve early into the new year (because who doesn’t love an easy to-do list??) here are some suggestions.

Automate Your Savings.
Life is expensive! Especially when you have your sights set on a vacation, home renovation, or even the creation of an Emergency Fund (which 26% of Americans report not having at all). Setting aside savings is a crucial step towards your financial health. There are multiple pathways to save, from automating contributions to an investment portfolio to downloading an app that bundles spare change on each transaction you make. If you want to avoid market fluctuations and go the straightforward route, set up an automatic direct deposit that funnels a percentage of your paycheck into a designated savings account. Then try not to touch it.

Enroll in a 401(k).
Speaking of savings…if your employer does not automatically enroll you in a 401(k) plan, you can sign up yourself. Unlike some company benefits (like flexible spending accounts or insurance enrollments that have deadlines), you can enroll in a 401(k) plan anytime during the year. So why not now? The sooner you can begin growing your retirement savings, the better. What you contribute is up to you, and many employers will match your contributions up to a certain percentage. If you earn income but don’t receive employer benefits, you can open a Traditional or Roth IRA as an alternative.

Trim subscriptions.
The average American underestimates their monthly subscriptions costs by $133 according to a 2022 survey conducted by C+R Research. People estimated they spent about $86 per month when in fact, they were spending about $219 per month. The start of a new year is a good time to take inventory of your streaming networks, music subscriptions, smartphone apps, wine club memberships, or any other miscellaneous expenses that might be drawing away from your overall savings goals.

Check your credit report.
You can get a free report once a year from each of the three major consumer reporting companies (Equifax, Experian, and TransUnion.) This allows you to resolve errors or instances of identity theft—red flags you do not want creditors looking at when they are evaluating your application for loans and credit cards. With the exception of Experian, you will have to pay a fee if you want to see your credit score. There is often a way around this, as more than 170 financial institutions and 10 of the top credit card issuers provide free access to your FICO score (the most commonly used type of credit score).

Resolved to Help
Need a little nudge when it comes to keeping your financial resolutions? Our partner GreenPath provides caring Financial Wellness Experts to assist in starting your year strong! GreenPath works with thousands of people each month to pay off debt, improve credit and lead a financially healthy life. Ring in the New Year…and then give them a ring! The call is free and confidential.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit.