Category: Wisdoms

  • Calling the Police: It’s Called ‘Tough Love’

    Wanda (not her real name) took out a home equity loan on her Waianae house. She intended to renovate her home so that her adult daughter could move in, care for Wanda and help repay the loan. Once the $290,000 was in their joint checking account, however, her daughter withdrew it and took her family on a first-class trip to Disney World. Wanda has not seen her daughter for two years and is now going through the foreclosure process.

    Steve (not his real name) was the caregiver of his disabled sister and had established a sizable savings account for her care. When Steve’s daughter offered to help care for her aunt, Steve gladly accepted and gave her access to the bank account. After six months of being a caregiver, she withdrew all the money from the bank account (about $120,000) and moved in with her new boyfriend.

    These are just two calls I got recently from victims who wanted to report what happened to them, but did not want the police to get involved. Their voices were full of despair and frustration. Each could not believe what had happened, and despite the fact that they were informed a crime had occurred, did not want the police or the court system to get involved — even if that was the only way to get their money back.

    As a deputy prosecuting attorney in charge of the Elder Abuse Unit, I advocate that all cases of financial abuse be reported to the police, even if the person taking the money is an adult child or another relative of the victim. It is not blind faith in the criminal justice system that leads me to this school of thought. Twenty years of experience has proven to me repeatedly that showing “tough love” and calling the police on a loved one who has stolen money is actually helping that person stop a behavior, like drug usage, which will prove harmful to them in the long run.

    More than once have I had parents call me up years after their child had been arrested to thank me for the work our office and the court system did to help their child get their life back on track. Drugs, alcohol, gambling or mental health issues have ruined the lives of many people and have caused family to victimize family. Oftentimes, those suffering from these afflictions will promise their kupuna they will get help, only to later on steal from them to feed their habit. Police intervention gives these people opportunities to either go to counseling or go to jail. Often they choose to get help and rehabilitation, with good results.

    If you are in a situation where you have been the victim of a crime committed by someone you know, please call the police. There is no shame in reporting a loved one’s destructive actions to someone who can force them into a rehabilitation program or other help they may need. It’s hard to do, but that is why it’s called “tough love.”

     

    To report suspected elder abuse, contact the Elder Abuse
    Unit at:808-768-7536 | ElderAbuse@honolulu.gov
    www.ElderJusticeHonolulu.com

    Wanda (not her real name) took out a home equity loan on her Waianae house. She intended to renovate her home so that her adult daughter could move in, care for Wanda and help repay the loan. Once the $290,000 was in their joint checking account, however, her daughter withdrew it and took her family…

  • What’s the Right Life Insurance?

    For most people, it isn’t a question of whether to own life insurance, but what kind of coverage is most appropriate for their circumstances. There is no “one-size-fits-all” policy. You need to determine what works best for you.

    Choosing life insurance involves finding the right balance between the cost of insurance and the most appropriate coverage for y our family.

    Two Basic Life Insurance Options

    Policies that provide a death benefit for survivors after you die, but no other features, for a specified period of time. These are typically referred to as term life insurance.
    Policies that combine a death benefit for survivors with a cash value that can be accessed while you are still living, often referred to as whole-life or permanent life insurance.

    Term insurance — cost effective coverage

    If keeping premiums as low as possible and replacing your income stream for your family are your priorities, term insurance can be a good option. The younger and healthier you are when first purchasing a policy, the less it will cost. Newly married couples may buy this type of policy to provide a financial cushion in the event one spouse dies. Your employer may offer term insurance as part of your employee benefits plan.

    The amount of coverage that seems sufficient early in life may not be enough to protect your family later on when you have dependent children, aging parents to support or when your income rises. Term insurance typically expires after a stated period of time or once you reach a specific age. After the term policy expires, you must reassess your insurance needs.

    Permanent life insurance — coverage beyond death benefits

    You may choose from a variety of permanent life insurance policies, such as traditional whole life, variable life, universal life or variable universal life. Like term policies, they pay designated beneficiaries at your death. Unlike term policies, they do not have a termination date. As long as adequate premiums are paid and the policy remains in force, your beneficiaries will receive the death benefit. Premiums or additional costs are generally higher than term insurance.

    Another important feature of permanent life insurance is that a portion of your premiums accrue within the policy on a tax-free basis; over time, the policy builds a cash value. Some forms of this type of insurance give you the ability to make investment choices within the policy. The cash value is not guaranteed, but it can act as an asset while you are living. This is an important benefit that can give the policy owner much more financial flexibility.

    Like anything else in your financial life, the need to protect your loved ones requires that you carefully assess which available options work best for your circumstances and needs. When insuring your life, be sure to discuss your options with a financial advisor or insurance specialist first, before making any decisions.

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years.

    Ameriprise Financial and its representatives do not provide tax or legal advice. Consult your tax advisor or attorney regarding specific tax issues.

    Life insurance benefits are subject to the claims paying ability of the issuing insurance company. Ameriprise Financial Services, Inc. Member FINRA and SIPC.

    © 2015 Ameriprise Financial, Inc. All rights reserved. File #1156277

    For most people, it isn’t a question of whether to own life insurance, but what kind of coverage is most appropriate for their circumstances. There is no “one-size-fits-all” policy. You need to determine what works best for you. Choosing life insurance involves finding the right balance between the cost of insurance and the most appropriate…

  • Be Giving While You’re Living

    Kingdom Advisors founder Ron Blue takes an interesting approach to estate planning. He advocates lifetime giving as a way to assure that the objects of your bounty are worthy recipients of your wealth. This could play out a couple of different ways.

    As Blue points out, there are three places your “stuff” can go after you die: to charity, to your loved ones, or to the government, attorneys, and other professional advisors by way of taxes and administration expenses. A good estate plan will minimize the amount that is bled away in the last category. A really good estate plan will help to make sure that your intentions regarding your loved ones and your favorite charities are carried out just as you intend.

    Giving assets outright to your loved ones is a way to give them full control over and responsibility for those assets. However, one of your intended beneficiaries could easily lose his or her inheritance as a result of a divorce, car accident, or bad business deal. Life is unpredictable, and your beneficiaries may have no experience manageing or protecting assets. For this reason, many estate plans include ongoing trusts that allow the beneficiaries to have as much control as they are able to handle, while at the same time insulating the trust assets from creditors and predators who might try to take advantage of your beneficiaries and take those assets away.

    The thing about leaving assets to your loved ones after you are gone is that you will have no idea how each loved one will handle his or her Inheritance. Your best guess during your lifetime could turn out to be wrong. So what about making gifts during your lifetime, so that you can see how your intended beneficiaries handle newfound wealth? Gifts allow beneficiaries to learn how to manage money. Gifting could also be a great way for you to “test drive” your estate plan and determine how well it works while you are still able to make adjustments to it. If one beneficiary turns out to be a poor steward of your wealth, you can always redirect assets in your final estate plan to other beneficiaries, or provide greater restrictions on a spendthrift beneficiary’s control over your hard-earned and carefully invested wealth.

    The same principles apply to charitable gifts. Your favorite charity could turn out to be a poor manager of donated assets. It would be far better to find that out during your lifetime than to leave your loved ones regretting your philanthropic choices, especially if your family name will be memorialized and forever connected with your charitable gift. Knowing what happens now gives you assurance about how things will go later on. If your charity performs well now, you may add to your gift, upon your death. Not only that, but your gift may have far greater impact because you made it earlier. If, for example, you want to provide funding for scholarships so underprivileged children can go to college, the sooner you make your gift, the sooner a scholarship recipient will graduate from college, get launched in a career, and turn around and “pay it forward,” as you have done. Giving now also allows you to join other donors, to create large charitable projects.

    As Ron Blue would say, you should consider “giving while you’re living so you’re knowing where it’s going.” This is simple but sound advice for anyone who prefers to test the water before diving in headfirst.

    Scott Makuakane, Counselor at Law
    Focusing exclusively on estate planning and trust law.

    Watch Scott’s TV show, Malama Kupuna
    Sundays at 8:30 p.m. on KWHE, Oceanic channel 11

    www.est8planning.com
    O‘ahu: 808-587-8227 | maku@est8planning.com

    Kingdom Advisors founder Ron Blue takes an interesting approach to estate planning. He advocates lifetime giving as a way to assure that the objects of your bounty are worthy recipients of your wealth. This could play out a couple of different ways. As Blue points out, there are three places your “stuff” can go after…

  • Four Myths About Kidney Disease

    What do you know about kidney disease? Are you sure that what you heard is correct? Here are 4 common errors:

    Myth 1: Kidney disease is rare

    One in seven adults in Hawai‘i has kidney disease and one in two are at risk for the disease. High blood pressure, diabetes, a family history of kidney failure, and being over 60 are major risk factors. So is being Asian, Pacific Islander, African-American, Hispanic, or American Indian.

    Myth 2: You’ll know if you get kidney disease

    Most people who have kidney disease don’t know it, because the early stages of kidney disease do not usually produce any symptoms. To learn if you have kidney disease, get tested. Once you are diagnosed there are many steps you can take to reduce the progression of the disease.

    Myth 3: People at risk can’t do anything

    Not everyone at risk will get kidney disease. You can help protect your kidneys. Eat healthy, get regular exercise, control blood pressure and blood sugar, keep a healthy weight, quit smoking, and don’t overuse pain medications like ibuprofen.

    Myth 4: Dialysis is the only treatment

    Early stage kidney disease is usually managed with medication, exercise, and diet. Some people diagnosed early can slow progression and enjoy a normal lifestyle. Dialysis or kidney transplant is only needed if kidney disease progresses to kidney failure.

    National Kidney Foundation of Hawaii
    808-589-5976 | jeff@kidneyhi.org
    For Planned Giving: www.kidneyhawaii.org
    Main: www.kidneyhi.org | www.kidney.org

    What do you know about kidney disease? Are you sure that what you heard is correct? Here are 4 common errors: Myth 1: Kidney disease is rare One in seven adults in Hawai‘i has kidney disease and one in two are at risk for the disease. High blood pressure, diabetes, a family history of kidney…

  • Lost in Translation

    Did you play the game “grape vine” as a child? You whisper something to someone who whispers it to another, until the last person gets the message. The last person says the message out loud. At best, it is a very garbled version of the original message.

    Think about estate planning. People tell their attorney the underlying reasons for wanting an estate plan. They share concerns for their loved ones and hopes for their future.

    The attorney then translates these heartfelt wishes and intentions into legal language and writes an estate plan. It’s like speaking English to someone and asking them to write down the conversation in French. However, the translator only knows scientific French words. He gets the jist of the conversation, but fails to translate the full meaning and intent. Some of the meaning and intent is lost.

    After the client dies, the trustee and beneficiaries try to understand the purpose, reasons, and meaning of the estate plan, only to find hard-tointerpret legal documents.

    This grapevine way of making one’s estate plan leads to misunderstanding, lack of clarity, and different interpretations can lead to fractured family relationships. The only people who can clear up any misunderstanding and define their values and meaning are gone — often estates become “lost in translation” experiences.

    We need to get away from the grapevine method of estate planning and start having family meetings to relay our intentions clearly while everyone is here — to ensure a successful estate plan.

    Stephen B. Yim, Attorney at Law

    2054 S. Beretania St., Honolulu

    808-524-0251 | stephenyimestateplanning.com

    Did you play the game “grape vine” as a child? You whisper something to someone who whispers it to another, until the last person gets the message. The last person says the message out loud. At best, it is a very garbled version of the original message. Think about estate planning. People tell their attorney…

  • For Love … of Money: Sham Marriages

    When it comes to love and relationships, we are particularly protective of our elders. We scrutinize new companions who come into their lives; when our kupuna decide to marry, we get concerned about the new partner’s intentions.

    Stephanie (not her real name) called my office, she was panicked. She just discovered a life her father had kept secret from her; he married a woman 30 years his junior recently; did not live with her; paid her rent and car payments; and that they met at a bar she worked. This upset Stephanie so much that she could only envision her father as being a helpless victim to a predatory vixen, she was calling to see if this new wife could be arrested for financial exploitation.

    Stephanie did not initially see the fact that her father was a competent, lonely, older man who lost his wife a couple of years ago and liked the attention given him by this bar hostess. Although this May/December relationship greatly benefited the wife financially, Stephanie’s father consciously knew the true nature of the relationship, and was more than willing to continue this marriage. After speaking to Stephanie, she understood that because her father wanted the marriage as it was, a crime did not occur, and there were no grounds for prosecution.

    Our office has been receiving more calls like this from family members or friends who are worried that a senior — seemingly competent in all other aspects of their life — are now an unwitting dupes for a gold digger.

    Although these relationships have the telltale signs of financial abuse, if one were to ask the “victims” if they feel exploited — many would reply just the opposite.

    Having said this, however, does not mean that all such unions should be viewed as a mutually-benefiting relationship for both spouses. There are, in fact relationships where these sham marriages can turn into abuse, harming the older spouse not only financially, but physically if the senior suffers from disabilities that are not being addressed by the spouse.

    In trying to determine whether or not a marriage is a case of love or is harmful to the older partner, one should be aware of the following warning signs:

    • Isolation: When someone is attempting to execute a scam, the less people involved the better. It is common for predators to isolate their victims from their families and loved ones. Be involved in the lives of your Kupuna and check in often.
    • Loneliness: Those who are potential victims of sham marriages are often lonely and seeking companionship. This makes them increasingly vulnerable. Stay involved and help your Kupuna to find healthy companionship. Help them to get involved in community activities, take classes, or find a new hobby.
    • Ulterior Motives: Be cautious when the individual you are seeing has a little too much to gain through this marriage. Are they non-residents? Are they in need of a green card? Are they financially unstable?

    Marriage should be a sacred bond built upon love and friendship. Unfortunately to some, marriage transforms into a dollar sign, a green card, or even a benefits package. Stay involved in your parent’s lives. The best way to protect your parents from sham marriages is to prevent them from loneliness and isolation — feeling the need to seek companionship from others that may not have their best interests at heart.

    To report suspected elder abuse, contact the Elder Abuse Unit at: 808-768-7536 | ElderAbuse@honolulu.gov

    www.ElderJusticeHonolulu.com

    When it comes to love and relationships, we are particularly protective of our elders. We scrutinize new companions who come into their lives; when our kupuna decide to marry, we get concerned about the new partner’s intentions. Stephanie (not her real name) called my office, she was panicked. She just discovered a life her father…

  • To Buy or Not to Buy a Vacation Home?

    You finally feel ready to make that dream purchase. Before you put an offer in for a getaway on a neighbor island or a city lights apartment, consider the realities of owning a second property.

    Can you afford it?

    Owning a second home entails additional expenses such as:

    • Furniture or other household items
    • Air fare or wear and tear on your vehicle
    • Annual repairs or improvements
    • Recreational equipment such as a boat
    • Utilities: heat, air-con, water, internet and cable
    • A security system for when you’re away

    If you plan to rent your vacation home, you may need to hire a property manager.

    Is the location right?

    Homes in areas where temperatures dip below freezing need to be winterized and monitored to avoid frozen pipes. Where there’s snowfall, there’s shoveling and plowing to manage. Distance is also a key consideration, and the relative ease of getting there. Have you chosen a location and property that will grow in value or will it be hard to sell when the time comes?

    Would renting be a better option?

    Short-term property rental can provide the comforts of a home without the obligations of ownership. Rather than be tied to one place, you can explore new locations when you take a vacation. Alternately, if you do purchase a vacation home, you may want to list your property as a rental when it’s not in use. If your vacation home is in a high demand area, you might be able to generate an income stream—but don’t forget the costs of managing the property from afar.

    How will your taxes be affected?

    Different tax rules apply to owning a second home, which can be somewhat complex. Rental income and expenses, property taxes and mortgage interest are a few items that could impact your tax return. You’ll want to consult with a tax advisor to sort out the details and discuss how your taxes will be affected.

    There are a lot of factors to think about before purchasing a vacation home. Consider working with a financial professional to determine how buying a second home will affect your long-term financial plan.

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com

    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years.
    Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding theirspecific situation.
    Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC.
    © 2015 Ameriprise Financial, Inc. All rights reserved. File # 1106728

    You finally feel ready to make that dream purchase. Before you put an offer in for a getaway on a neighbor island or a city lights apartment, consider the realities of owning a second property. Can you afford it? Owning a second home entails additional expenses such as: Furniture or other household items Air fare…

  • Retiring Early? Answer 5 Questions First

    While many people are forced to stop working earlier than they’d planned due to health or employer issues, others dream of early retirement. The upside of early retirement is easy to understand – more time to pursue your interests, while you are still healthy. The downside risks center on cost of retirement, and the emotional impact of changing your routine. Keep in mind that given today’s life expectancies, anybody who retires before age 65 or 66 could easily spend two or three decades in retirement. Given this reality, here are five key questions you should answer before you decide to retire early:

    Q1: Do you have a realistic plan to generate income for decades?

    Making realistic projections about all sources of future revenue and how much income you can draw over a lifetime really matters. Remember, cost of living will likely increase over time, requiring you to withdraw more from your nest egg in the future. To meet this financial challenge, you need a large, widely invested portfolio. Be sure to add in other sources of retirement income: Social Security, pension income and inheritance you have received or can count on receiving.

    Q2: Do you have outstanding debts to pay?

    If you continue to carry a home mortgage, automobile loan, credit card debt or home equity loan into retirement, ongoing payments subtract from your disposable income. The ideal situation is to have little or no debt when you head into retirement so you can be more efficient in the use of your available financial resources.

    Q3: Are you going to claim Social Security benefits early?

    Most people are first eligible to claim Social Security benefits at a reduced rate, when they reach age 62. Full retirement benefits are paid to persons who retire between ages 65 and 67, depending on the year of birth. Early retirees must prepare to either substitute for Social Security benefits in earlier years or accept smaller Social Security payments throughout their lives.

    Q4: What is your plan for health care?

    One of the costliest aspects of early retirement is paying for private health insurance after you leave work and before you are eligible for Medicare. Explore your options for health care exchanges and private insurers. Perhaps you are covered under a former employer’s plan for retirees. Remember, persons in their 50s and 60s often pay the highest premiums for health insurance, so this will represent a significant expense.

    Q5: Are you emotionally prepared for a dramatic change in your life?

    Leaving the routine you’ve been living for decades is a significant adjustment. Before leaving the workforce, envision your new life after retirement. Plan to stay active and connected to people; provide yourself the the kind of stimulation you were accustomed to while you worked.

    Early retirement is likely to work out best for those who plan ahead. Answering these five questions in an honest and comprehensive way is a good starting point.

     

    Michael W. K. Yee, CFP
    1585 Kapiolani Blvd., Suite 1100, Honolulu
    808-952-1222 ext. 1240 | michael.w.yee@ampf.com
    Michael W K Yee, CFP®, CFS®, CRPC®, is a Financial Advisor and CERTIFIED FINANCIAL PLANNER practitioner™ with Ameriprise Financial Services, Inc. in Honolulu, HI. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years. Investment advisory products and services are made available through Ameriprise Financial Services, Inc., a registered investment advisor. Ameriprise Financial Services, Inc. Member FINRA and SIPC. © 2014 Ameriprise Financial, Inc. All rights reserved. File # 1065887

    While many people are forced to stop working earlier than they’d planned due to health or employer issues, others dream of early retirement. The upside of early retirement is easy to understand – more time to pursue your interests, while you are still healthy. The downside risks center on cost of retirement, and the emotional…

  • History, Herstory, Yourstory

    One Sunday morning, a few years back, I was out driving on the North Shore, headed to Starbucks for my morning cup of coffee. The traffic wasn’t light, as it was surf season, which means it was pretty crowded with only one lane going in each direction. I noticed in my rearview mirror that there was a car weaving in and out of traffic, passing other cars and speeding. As the driver passed me, I remembered getting angry at this impatient and disrespectful driver. I continued to observe the driver as they sped ahead, weaving in and out of traffic, until the car finally disappeared. I couldn’t imagine anyone more selfish and crazy, making it so dangerous for everyone else just because of their impatience…until I got to Foodland where Starbucks was. You see, across the street was a fire station. And there was the crazy driver — at the fire station. Their passenger was seated, surrounded by firemen who were taking the passenger’s blood pressure. As I entered Starbucks, I could hear an ambulance driving away from the fire station.

    This new year, you might be considering making or updating your estate plan. When you do, please do not rely solely on the legal plan to pass your intentions on. Where appropriate, please take the time to discuss your intentions with your family, and write them down. You are the custodian of your wishes, intentions, and memories. We cannot afford misunderstanding, or to completely lose them when you are not able to express or explain yourself. The estate plan, in a way, is your story and belongs only to you. Please do your best to clearly share your story.

    Stephen B. Yim, Attorney at Law
    2054 S. Beretania St., Honolulu
    808-524-0251 | stephenyimestateplanning.com

    One Sunday morning, a few years back, I was out driving on the North Shore, headed to Starbucks for my morning cup of coffee. The traffic wasn’t light, as it was surf season, which means it was pretty crowded with only one lane going in each direction. I noticed in my rearview mirror that there…

  • Easy Come … Easy Go

    Receiving an inheritance can certainly be like winning the lottery. What could be wrong with that?

    Callie Rogers, age 16, won $3.1 million in a British lottery. By the age of 22, the unwed mother of two had attempted suicide twice, and spent over $400,000 on cocaine alone (in addition to more conventional luxuries). She was broke, living with Mom, and working three cleaning jobs.

    William “Bud” Post won $16.2 million in the Pennsylvania Lottery in 1988. Within five years, his brother had put out a murder-for-hire contract on him. His landlady, who was also his sixth wife, had forced him to give her a third of his winnings. He was convicted for assault for firing a shotgun at a bill collector. By the time he died in 2006, Post had gone from scooping up annual lottery payments of $497,953.47 to scraping by on $450 per month in disability compensation.

    Jack Whitaker won the largest Powerball payout in history. In just four years, he blew through $113,386,407.77 (after taxes). He gave away $14 million to his church and other charitable causes, but he went from successful businessman to a sleazy strip club regular. Money’s impact on his loved ones was even more tragic. The apple of his eye — his granddaughter, Brandi — unfortunately spent her new-found wealth on a trip down the fast lane to drug addiction. Brandi ended up dead under circumstances that pointed to murder.

    So what will your loved ones do with what you leave behind for them? The above examples are extreme, but they show how a sudden windfall can quickly turn from a blessing into a curse. The lesson applies to all of us. It doesn’t take millions of dollars to ruin a life. Rather than give your loved ones direct access to what you leave behind, you can give them their inheritance in trusts, administered by people or institutions who will provide good judgment and wise guidance. Those trusts can contain provisions to protect your beneficiaries from bad habits, opportunistic friends and family members, and their own lack of wisdom and experience. You can even add a variety of conditions to your gifts. You can condition distributions from trusts upon such things as the beneficiary’s passing a drug test, holding a steady job, or staying out of jail. You can also impose positive conditions, such as directing your trustees to make larger ongoing distributions to beneficiaries who are maintaining a certain grade point average in college or meeting other standards of achievement.

    Your legacy deserves to be passed on in a way that will genuinely benefit your loved ones. There’s no harm in being creative about how you achieve your estate planning goals.

     

    Scott Makuakane, Counselor at Law
    Focusing exclusively on estate planning and trust law.
    Watch Scott’s TV show, Malama Kupuna
    Sundays at 8:30 p.m. on KWHE,Oceanic channel 11
    www.est8planning.com
    O‘ahu: 808-587-8227 | maku@est8planning.com

    Receiving an inheritance can certainly be like winning the lottery. What could be wrong with that? Callie Rogers, age 16, won $3.1 million in a British lottery. By the age of 22, the unwed mother of two had attempted suicide twice, and spent over $400,000 on cocaine alone (in addition to more conventional luxuries). She…

  • Cons Prey on Good Intentions

    For hours, Elaine (not her real name), age 69, sat on the lanai of her Pearl City townhouse waiting. She was told that at any moment, the governor was going to arrive and present her with a new car and a check for $2 million. During this time, her adult son was yelling because he just found out that over the past year, she wired over $40,000 to the “International Lottery Commission” to pay the fees and taxes on her lottery winnings. He was so upset, in fact, that neighbors called the police, fearing for the safety of the mother. When they arrived, he calmed down enough to ask her why she even wanted a car because she didn’t even drive. Her response was, “I wanted to get you something nice, for being such a good son.”

    There have been numerous studies trying to explain why seniors fall victim to so many financial scams. Some theorize that as the brain ages, it becomes more susceptible to these cons. In essence, stating that a form of mild incompetency is a natural stage of growing older. This belief, in my opinion, is ageist, and does not explain the great many elders who lead productive and successful lives, well after their retirement age.

    No, the vast majority of victims I have encountered were individuals of sound mind, with no defect in their cognitive thinking that led them to believe in something that was too good to be true.

    In my experience, it is their desire to continue the role started decades ago, namely, being a provider. Many victims of financial abuse are either parents or grandparents, or persons who lived their life supporting a spouse or sibling. They worked hard and sacrificed to provide their family with the best they could afford. As it dawns on them that they may no longer be able to accomplish this self-appointed supporting role, they become desperate. Desperation leads them to want to believe that they are lucky enough to have won a lottery they never entered, or blessed by an invitation to participate in an investment opportunity with unbelievable returns.

    These feelings of urgency are only fueled by the tactics of conmen who talk about “leaving a legacy” or guarantee a way of providing for the family once the senior is gone. Think of a life insurance advertisement on steroids with a lot of guilt added for effect.

    How can this be prevented? Perhaps one thing a loved-one can do is communicate to the senior sincere gratitude for everything they have done for them. Explain how the senior’s hard work and encouragement provided a foundation to be successful in the their own lives. Or better yet, clearly demonstrate that they no longer need financial help from the Kupuna. It is through these actions, that the senior will know they completed their job of being a provider.

     

    To report suspected elder abuse, contact the Elder Abuse Unit at: 808-768-7536, ElderAbuse@honolulu.gov, www.ElderJusticeHonolulu.com

    For hours, Elaine (not her real name), age 69, sat on the lanai of her Pearl City townhouse waiting. She was told that at any moment, the governor was going to arrive and present her with a new car and a check for $2 million. During this time, her adult son was yelling because he…

  • Recognizing Warning Signs Of Abuse

    Recently, I appeared on the Generations Radio Show (Saturdays from 5 to 6 pm on AM 690) aired November 22 and can be heard at www.Generations808.com) with Lt. John McCarthy of the Financial Crimes Unit of the Honolulu Police Department. With 39 years of police department experience, he is nationally recognized as an expert in financial crimes and elder abuse.

    On the show, we discussed how scams go undetected because people don’t recognize the warning signs of trouble and abuse. Listed here are danger signals, that if seen, should prompt further investigation.

    Isolating the victim: Abusers don’t want the victim to have a support system and will either try to physically remove the person from loved ones (like a caregiver not letting family members visit the elder) or deceive the victim into thinking that a concerned person is really trying to harm them (like one sibling telling the parent that the other sibling is interfering because he wants everything himself).

    Secrecy: A lot of scams involve instructing the victim not to reveal that the transaction/event is occurring. For example, a letter indicating that a senior has won the lottery will instruct the “winner” not to tell anyone of the prize because “there are a lot of scams going on right now.”

    Urgency: People who are rushed or under pressure make poor decisions. Scammers will make an offer, like “I’m in the neighborhood today with some extra building materials — I can do some repairs really cheap if you hire me right now.”

    Emergency/tragedy: Emotional decisions are not the best ones and scammers want you to make choices when you are not thinking rationally. The “Distressed Relative Scam” (or “Grandma Scam”), when you get a frantic call in the middle of the night relating that a loved-one is in dire straits and only money can solve the problem, is a good example of this technique.

    Green Dot/money pack cards: A Green Dot/Moneypac card is a gift card you purchase and place money into at the cash register. It is a common way criminals transfer money from their victims into accounts around the world. ANY transaction in which money is to be paid using a Green Dot card should be suspect, for instance, the IRS calling and demanding payment for delinquent taxes with a Green Dot card.

    Loneliness: Companionship (or the hope thereof) in exchange for money is never a good idea. Whether it is “your soulmate” you found on an online dating site asking for a loan or a caregiver accepting generous gifts to stay longer, taking advantage of an elder’s loneliness is abuse. 

    Too good to be true: Offers, promises, business deals and investments that sound too good to be true are just that and are merely bait to lure victims into making poor decisions.

    If you suspect elder abuse, first call 911 and then report it to the authorities listed below.

    To report suspected elder abuse, call police, 911, and/or:
    Elder Abuse Unit: 808-768-7536
    Adult Protective Services: 808-832-5115
    ElderAbuse@honolulu.gov
    www.ElderJusticeHonolulu.com

    Recently, I appeared on the Generations Radio Show (Saturdays from 5 to 6 pm on AM 690) aired November 22 and can be heard at www.Generations808.com) with Lt. John McCarthy of the Financial Crimes Unit of the Honolulu Police Department. With 39 years of police department experience, he is nationally recognized as an expert in…