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Annuities can be a significant component of retirement planning, offering a source of retirement income. However, to understand the features of annuities, it’s essential to understand the dos and don’ts before purchasing one.

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June is typically recognized for the start of summer, which means graduation ceremonies, homebuying season, and wedding season. But for those who are thinking about their financial future, June also represents Annuity Awareness Month. Created by the National Association for Fixed Annuities (NAFA) and supported by financial professionals nationwide, this month-long campaign is dedicated to educating consumers about the role annuities can play in a financially healthy retirement strategy. As the “three-legged stool” of retirement (Social Security, pensions, and personal savings) continues to shift, understanding your options can make the difference between uncertainty and stability in retirement.

This June, we are starting a conversation about how annuities can help bridge the retirement income gap millions of Americans face.

The Changing Landscape of Retirement

For previous generations, retirement planning was often straightforward. You worked for 30 years, received a gold watch, and retired with a monthly pension check that, combined with Social Security, covered most of your expenses.

Today, that landscape has transformed. According to the Social Security Administration, private-sector defined benefit pensions have become increasingly rare, replaced by defined contribution plans like the 401(k) and IRA. This shifted the risk of retirement planning from the employer to the employee. If the market dips the year you retire, or if you outlive your savings, the responsibility falls squarely on your shoulders.

Yet many Americans overestimate Social Security’s efficacy as a safety net and don’t realize that it’s only designed to replace approximately 40% of the average worker’s pre-retirement income. Is 40% enough to maintain the standard of living you’ve worked so hard to pursue? Are you prepared to fill the remaining 60% gap with personal savings and investment vehicles?

If not, this is where annuities can help.

What Exactly Is an Annuity?

An annuity is essentially a contract between you and an insurance company. In exchange for a lump sum or a series of payments, the insurer commits to making periodic payments to you, beginning either when you purchase the contract (immediate) or at some point in the future (deferred). While annuities may offer tax-deferred growth and regular income, their primary function is the mitigation of longevity risk, or the risk of outliving your money, as some annuities come with lifetime features.

Filling the Gap: Why Annuities Can Make Sense

If Social Security only covers 40% of your needs and the traditional pension is a relic of the past, how do you sustain your lifestyle through retirement?

Annuities can fill that gap because they provide regular income—something that many defined benefit plans offered. So, by converting a portion of your retirement savings that, say, used to be in a defined contribution account into an annuity, you can start to fill that regular income gap. This allows you to cover your essential expenses (mortgage, healthcare, groceries) with predictable checks. And with a lifetime benefit annuity, that regular income can do even more to support Social Security income.

Potential Features of Annuities

Like any financial vehicle, annuities are not a universal solution. So, it’s important to weigh the advantages against the limitations.

The tax-deferred growth feature of an annuity means you don’t pay taxes on the interest earned until you start taking withdrawals. This allows your principal to earn interest, your interest to earn interest, and the money you would have paid in taxes to also earn interest.

Another powerful feature of many modern annuities is the lifetime income rider. As life expectancy increases, so does longevity risk, and many retirees fear that a longer life could lead to a depleted bank account. By triggering an income rider, you can establish a source of income that is contractually required to last as long as you (or your spouse) are alive, no matter how long that may be or what the stock market does.

Annuities can also lessen the risk against market volatility while still participating in the market in the form of a fixed-indexed annuity (FIA). FIAs present the added benefit of being able to link your growth to a market index like the S&P 500. If the market goes up, you receive a portion of the gains. If the market goes down, your principal is protected from market losses. The concept of protection with upside potential is a cornerstone of many modern retirement plans.

And if you’re considering leaving assets to heirs, some types of annuities can potentially assist the estate planning process by enabling the direct transfer of assets to beneficiaries while bypassing the costly and lengthy probate process.

But there can be downsides to annuities, too. Since annuities are long-term vehicles, many of them have liquidity limitations and come with penalties if you try to make an early withdrawal. And unless you purchase a specific inflation or cost-of-living adjustment (COLA) rider, the purchasing power of a fixed payment may decrease over decades.

Why Guidance Matters

This Annuity Awareness Month is a reminder that financial literacy is an important step toward financial security in retirement.

If you are relying on just 40% of your pre-retirement income via Social Security or a volatile stock market to sustain your retirement lifestyle, it might be time to add stability with an annuity. By choosing the annuity structure that best fits your goals and transferring the risk of outliving your money to an insurance company, you can insulate your retirement from market volatility and create your own source of income for life before you retire.

While annuities are highly customizable and can be tailored to your specific stage of life, the variety of riders, caps, participation rates, and many other specifications can be confusing without professional help. That’s why we’re using Annuity Awareness Month to educate our clients on how annuities might fit into their retirement strategy. An advisor can help you navigate the customizability and complexity of these contracts and determine strategies to calibrate your portfolio based on your unique goals, risk tolerance, and family needs.

For example, you might use a 401(k) for growth, a high-yield savings account for emergencies, and an annuity to provide the regularized income that Social Security often leaves incomplete and underfunded. The important thing to remember is that while an annuity can be a useful component of a diversified strategy, it’s only one piece of the retirement puzzle.

This June, take a moment to look at your retirement portfolio. Is it balanced? Does it leave you feeling secure in your financial future? Let’s start the conversation. Contact us today to see how an annuity could help you work toward the retirement you earned.

Sources:

https://www.ncoa.org/article/how-much-of-my-income-will-social-security-replace/

https://www.ssa.gov/policy/docs/issuepapers/ip2017-01.html

https://annuretirement.com/

https://www.annuity.org/annuities/riders/cost-of-living/

https://www.annuity.org/annuities/riders/

https://smartasset.com/retirement/annuity-income-rider

This material is for educational purposes only and is not intended to serve as the basis for any purchasing decision. It should not be construed as individualized investment advice. Any information provided may result in contact by an insurance agent. Annuities are long-term financial vehicles designed for retirement purposes. They are not bank products, are not FDIC insured, and involve certain risks. Fixed Indexed Annuities (FIAs) provide protection of premium and guaranteed interest rates, but do not directly participate in the stock market. The interest credited is limited by caps, participation rates, and spread rates, which are subject to change at the company’s discretion. All guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Investing involves risk, including the potential loss of principal. Withdrawals are subject to ordinary income tax and, if taken before age 59½, a 10% federal penalty may apply. This information is not intended as specific legal or tax advice; please consult a professional regarding your individual situation. The source(s) used to prepare this material are believed to be true, accurate, and reliable, but are not guaranteed. SWG5430448-0426

Taxes are deferred until withdrawals begin

2 Guarantees are backed by the claims-paying ability of the insurer

In honor of Annuity Awareness Month, this article provides insight into annuities and how they may fit into a retirement income strategy. Annuities may seem complex, but with a clearer understanding of their basics, types, and role in generating retirement income, one can assess whether they are a suitable component for their portfolio.

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You’ve likely seen it while scrolling through your 401(k) options or during a quick check of your brokerage account: a little leaf icon next to a fund labeled ESG. Initially, ESG was presented as a revolutionary framework, gaining significant traction as investors sought to align their capital with broader social and environmental goals. This rise was fueled by a growing demand for corporate accountability and a belief that ethical considerations could be seamlessly integrated into traditional financial analysis.

Today, however, ESG is facing a cooling-off period due to a lack of scoring standardization across industries, accusations of greenwashing, and, in some cases, performance has differed from traditional benchmarks. As we look at the landscape today, we have to ask: Did ESG fail, or is it simply becoming something more permanent and practical? And is there a way to help your money work for your financial future and your principles simultaneously?

Values-Based Strategies Options

Values-based investing is not a single methodology but a broad spectrum of approaches designed to meet different objectives. Let’s look at some of the options:

1. Socially Responsible Investing (SRI): This approach uses what’s known as negative screening to exclude specific industries or companies from a portfolio based on ethical criteria, such as avoiding tobacco, weapons, or gambling.
2. Impact Investing: Unlike exclusionary strategies, impact investing is intended to generate measurable social or environmental effects alongside the potential for financial return.
3. Faith-Based Investing: This strategy aligns investment decisions with the specific religious tenets or moral teachings of a faith tradition, ensuring that the growth of wealth does not conflict with spiritual convictions.
4. Thematic Investing: This focuses on long-term macro trends, such as the transition to renewable energy or the ethical development of artificial intelligence, allowing investors to capitalize on specific shifts they believe are vital for the future.

Limitations of Standardized Methodology

As mentioned before, one of the primary critiques of the early ESG movement was the reliance on aggregate scoring. Most ESG-labeled funds utilize third-party data providers that assign a single score to a company by averaging various environmental and social metrics. This single score averages out everything from a company’s carbon footprint to how many women are on its board.

This introduces a bit of an issue for the investor. Personal values are unique and specific, but the scoring of mass-market funds is not. For example, a fund may receive a high ESG rating due to its carbon neutrality, yet it may hold companies with governance structures or labor practices that an individual investor finds objectionable.

Furthermore, these funds rarely allow for nuanced weighting. For example, if an investor prioritizes domestic manufacturing over board diversity or if you care 90% about clean water and only 10% about executive pay, a standard ESG fund cannot adjust its composition to reflect those specific priorities. The result is often a portfolio that reflects a generic data provider’s definition of good rather than the investor’s actual principles.

Values as a Proxy for Risk and Resilience

Modern values-based investing has evolved beyond moral preference and may serve as one consideration in evaluating legal and economic resilience. This can help align personal values with a more robust financial portfolio. For instance, companies that proactively address their environmental impact or labor relations are often better positioned to navigate shifting regulatory landscapes, which may influence how some investors evaluate long-term risks. This approach differs from traditional ESG aggregation because it focuses on strategic alignment:

• Global Compliance: Investing in companies that meet or exceed international standards, reducing the risk of sudden regulatory fines or market exclusion.
• Reputational Capital: Recognizing that in a transparent digital economy, companies with high ethical standards may maintain stronger brand loyalty and lower employee turnover, which some investors consider when evaluating long-term business performance.
• Future-Proofing: Aligning a portfolio with the inevitable transition toward sustainable energy and ethical technology, which some investors believe may be more resilient over time.

While this incorporates some ESG data points, it treats them as individual risk factors rather than a diffused average. Instead of buying a bundle, you are identifying specific risks and opportunities that align with your worldview.

How We Can Help

We’re here to help integrate your values-based choices in a way that remains focused on your ultimate goals and complements your financial strategy. We can help you find the opportunities that fit your risk tolerance and your values.

As we celebrate World Environment Day this Friday, perhaps this could be the right time to ask whether your money is working for the world you want to see.

If you’d like your values to be reflected in your financial plan, talk to us today about how that may be possible for your financial situation.

Sources:

https://www.forbes.com/sites/jbrewer/2025/07/15/should-you-build-your-retirement-through-values-based-investing/

https://informationstation.org/kitchen_table_econ/what-is-an-esg-score/

https://www.kiplinger.com/investing/esg/what-is-esg

https://www.cnbc.com/2026/03/17/2026-just-capital-rankings-where-ceos-are-investing-in-post-esg-era.html

https://digitaldefynd.com/IQ/is-esg-failing/

The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. This material is for informational purposes only and should not be construed as investment advice. Investing involves risk, including possible loss of principal. Values-based or ESG investing may limit investment opportunities and cause performance to differ from the broader market.

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Spousal Social Security can be an important component of retirement planning, providing income to the spouse who either did not work or earned less during their working years. Understanding its nuances, eligibility conditions, and potential impact on one’s retirement income can help for effective financial planning. This article aims to unravel some of its key aspects.

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May 29th is quickly approaching, so let’s celebrate 529 Day with a look at this unique financial tool and how it could help benefit you or your family. A 529 plan is a tax-advantaged investment account designed to help save for future education expenses. So whether you’re considering how to set a grandchild up for college education or considering a career pivot for yourself, a 529 plan may be something to consider in your financial strategy.

A Quick Trip Down Memory Lane

While it feels like they’ve been around forever, Congress actually created the 529 plan relatively recently, back in 1996. Over the last three decades, these accounts have evolved from simple college-savings buckets into versatile, multi-purpose accounts that help support a wide range of educational paths.

Why a 529 Plan is a Key Advantage for Your Savings

The benefits of a 529 plan can go beyond just saving for a university degree. Here are some of the financial benefits of these plans:

• Tax Efficiency: Your investments grow tax-deferred.
• Tax-Free Growth: When you’re ready to use the money for qualified education expenses, withdrawals are generally free from federal income tax.
• Openness & Flexibility: There are no income restrictions for you as the contributor or for the beneficiary. Additionally, there is no limit to the number of plans you can set up! You can also set up a 529 in whichever state you prefer; you aren’t limited to the one you live in. Just remember that in-state 529 plans may offer tax deductions or credits that are not available if you choose a plan from another state.

Flexibility for Every Life Stage

One of the biggest misconceptions is that 529s are only for traditional four-year colleges. In reality, they can be incredibly adaptable:

• K-12 Education: You can use up to $20,000 annually for tuition expenses at elementary or secondary public, private, or religious schools.
• Diverse Career Paths: Funds can be used for trade schools or apprenticeship programs that participate in Title IV federal student aid programs. If you aren’t sure if a school qualifies, you can use the Federal School Code Search provided by the U.S. Department of Education.
• Broader Expenses: Beyond just tuition, you can pay for books, fees, classroom supplies, electronics (like a laptop), and even reasonable room and board.

What If Plans Change?

If the original beneficiary decides not to use the funds, you don’t lose that hard-earned progress.

• Family Transfers: You can transfer the funds to another qualified family member.
• The Account for Everyone: You can name anyone as a beneficiary—a relative, a friend, or even yourself if you’re eyeing a graduate degree.
• Roth IRA Rollover: This is a game-changer! You can roll over up to $35,000 in unused 529 funds to a Roth IRA tax-free and penalty-free.
  • Note: The account must be at least 15 years old, and annual rollovers are limited to $7,500 (or $8,600 if you are age 50 or older).

Making the Most of 2026 Limits

If you already have an account and are looking to boost your 529 contributions this year, 2026 offers some generous gift tax limits. You can gift up to $19,000 as an individual (or $38,000 for married couples filing jointly) into a single plan without it counting against your lifetime gift tax exemption.

While there are no annual federal contribution limits, most states have lifetime caps per beneficiary, typically ranging from $235,000 to $575,000, so be sure to check with a qualified professional from the state you have your 529 in.

Let’s Help Secure Your Legacy

Education is one of the greatest gifts you can give, but it’s just one piece of your larger financial puzzle. We’re here to help your 529 strategy work alongside your long-term goals and retirement plans.

Ready to see how a 529 plan fits into your bigger picture? Reach out today, and let’s start building a strategy that helps secure your family’s future.

Sources:

https://www.savingforcollege.com/article/can-you-use-a-529-plan-to-pay-for-trade-school

https://www.savingforcollege.com/intro-to-529s/name-the-top-7-benefits-of-529-plans

https://www.savingforcollege.com/article/roll-over-529-plan-funds-to-a-roth-ira

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This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. 529 plans are subject to investment risk, including the potential loss of principal. Prior to investing, individuals should consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s 529 college savings plan. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.

In modern America, the “traditional” household has undergone a significant transformation. Gone are the days when a single breadwinner was the norm; today, the dual-income household is the engine of the American economy. Families now rely on two paychecks to maintain their lifestyle, balance the mortgage, fund a child’s education, or build a retirement nest egg. Yet a sizeable gap remains in many financial plans: protection against the loss of one or both incomes due to an unexpected illness or injury.

With more than one in four adults in America having some type of disability, the potential for lost income could affect millions of families. So, take a moment to ponder a hard question: “What happens if I suddenly lose my paycheck?” And since adults with disabilities are more likely to experience heart disease, obesity, diabetes, and other health complications, it becomes an even more prudent question to consider as you approach retirement.

As we observe Disability Insurance Awareness Month every May, it is the perfect time to assess whether your family is protected against the loss of income and cover some use cases that might surprise you.

The Dual-Income Paradox: Double the Risk

For two-income households, there is a common misconception that if one partner becomes unable to work, the other’s income will provide a sufficient safety net. In reality, the loss of one income often triggers a “dual-income paradox.” When both partners work, expenses are often scaled to that combined total. A disability can potentially reduce household income and increase expenses through medical bills, specialized care, and the need for domestic help that the disabled partner can no longer provide. And in some cases, the healthy partner may need to take time off work to act as a caregiver, leading to a further reduction in the household’s total earning power.

Even if you’re currently young and healthy, statistics from the Social Security Administration highlight the urgency of a potential need for coverage, showing that one in four of today’s 20-year-olds will experience a disability before reaching age 67.

Pregnancy and Disability: Planning for Life’s Milestones

Another common misconception about disability insurance is that it’s only for the sick or the elderly, but short-term disability insurance can also be used for expectant mothers as part of a comprehensive birth plan. You’re probably already familiar with paid maternity leave—which provides income for mothers after childbirth—but not every employer or state offers that to employees. While federal laws like the Family and Medical Leave Act (FMLA) provide job security, they generally do not provide income, which is where disability insurance becomes relevant. Disability insurance benefits can help replace a portion of your earned income during a medical leave, depending on the specific coverage and eligibility requirements of your policy.

1. Routine Childbirth: Most short-term policies cover a standard six-to-eight week recovery period, depending on the method of delivery, providing critical income replacement while a mother heals and bonds with her new child. This short-term disability coverage is often used concurrently with FMLA leave, providing pay while FMLA provides job protection.
2. Pregnancy Complications: If complications or the need for physician-ordered bedrest arise before delivery, disability insurance can help provide a financial bridge. Because the history of U.S. leave policies has often struggled to balance gender equality and labor protections, disability insurance remains a useful tool for the “medical” side of the leave. While it typically only applies to the person giving birth (due to the medical necessity requirement), it is designed to help protect the household’s income stream during the recovery window.
3. Postpartum Health: Just as important as physical recovery, the mental health angle is also addressed within short-term disability insurance. Serious postpartum conditions, including postpartum depression or anxiety, can qualify an individual for extended disability benefits. These extended benefits are meant to help provide the mother with time and financial assistance during the recovery process.

Important Note: To use disability insurance for pregnancy, you generally must have the policy in place before becoming pregnant, as pregnancy is often considered a “pre-existing condition” if the policy is purchased after conception.

Navigating Your Options: From Government Support to Private Plans

Understanding the types of disability insurance and where your protection comes from can help you determine which type of coverage suits your family’s needs. Here’s an overview of some of the options:

• Short-term disability insurance (STD) is for temporary disabilities and is designed to replace up to 60%-80% of your income for a short period of time, typically three to six months or until you can return to work, whichever is shorter. STD is often provided through your workplace, either as a mandatory or voluntary benefit.<br>
• Employer-Sponsored (Group) Plans: While these are a solid foundation, they often have limits that may not fully replace the income of a high-earner and are generally not portable—meaning if you leave your job, you leave your coverage.

• Long-term disability insurance (LTD) is for more severe and even permanent disabilities. It’s sometimes offered as a workplace benefit, but is more commonly purchased as an individual policy. The benefit is designed to last for many years—through retirement if needed—replacing up to 60%-80% of your income if something were to happen and you could no longer work.

• Individual Disability Insurance (IDI): For those seeking comprehensive protection, an individual policy offers the most flexibility. Unlike employer-sponsored group plans, these policies stay with you regardless of your employer and can be tailored to your specific needs, such as adding riders for retirement protection or cost-of-living adjustments.

• Social Security Disability Insurance (SSDI): Provided through the Social Security Administration, this federal program is intended as an additional layer of protection for those with severe, long-term disabilities. However, the criteria are strict as the disability must be expected to last at least a year or result in death, and the application process can be lengthy.<br>

A waiting period, often a week or two in length, typically applies before benefits start paying. Premiums, benefits, taxability, and other features of disability insurance vary from policy to policy, and because of the wide range of disabilities that many Americans face, there’s no one-size-fits-all solution. Thorough assessments of your health and your family’s income needs can help you determine which type of coverage can provide the most benefit for your situation.

Why Waiting Carries Risk

The Department of Labor notes that disability insurance is a key component of a comprehensive benefits package, yet many workers remain underinsured. Waiting until a crisis hits is too late—you may be denied coverage for pre-existing conditions and left to find alternative ways of replacing your household income. Whether you are a dual-income couple building your future or an expectant mother preparing to welcome a new family member, the best time to help secure your income is while you are healthy.

Remember, disability insurance can be for anyone, not just those who are older or already ailing. This Disability Insurance Awareness Month, take the time to review your income protection gap. Your ability to earn an income is a valuable asset—it’s time to protect it with the same diligence you built it with. Schedule an appointment so we can discuss protection strategies that help build confidence in your financial independence.

Sources:

https://www.ssa.gov/disability

https://www.schwab.com/learn/story/disability-insurance

https://www.investopedia.com/terms/d/diinsurance.asp

https://www.dol.gov/general/topic/benefits-leave/fmla

https://www.oah.org/tah/november-3/the-history-of-family-leave-policies-in-the-united-states/

https://www.cdc.gov/disability-and-health/articles-documents/disability-impacts-all-of-us-infographic.html

This presentation is not endorsed or approved by the Social Security Office or any other Government Agency. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. This material is designed to provide general information on the subjects covered. It is not intended to provide specific legal or tax advice and cannot be used to avoid penalties or to promote, market, or recommend any tax plan or arrangement. You are encouraged to consult your personal tax advisor or attorney. Disability Insurance is issued as a non-cancelable, guaranteed-renewable, individual disability income insurance policy. It is not a pension or retirement program. Disability Insurance may not be available to anyone who is considered over-insured. Additional underwriting guidelines may apply. SWG 5332039-0326

The golden years of retirement offer an opportunity to resume leisure activities that may have been put on hold during one’s career. Hobbies offer an amazing avenue to replace work routines with enjoyable activities that can blossom into passionate pursuits. This transition is not only fulfilling but can also offer benefits such as supplementing income and promoting physical and psychological health. Read below about how you can focus on turning your hobbies into passions.

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Understanding Medicare and its intricacies often seems daunting. This article will provide an overview of the program, highlighting when to enroll and what the different parts of Medicare encompass.

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This Friday, May 15th, is National Senior Fraud Awareness Day. This day is dedicated to shedding light on pervasive crimes that have cost older adults billions of dollars in recent years. In 2024, scams reported to the FTC recorded losses of $2.4 billion, up from $1.9 billion in 2023.

While wisdom has come with age, we must also recognize that accumulated savings, trusting natures, or the desire for personal connection with others can make older adults prime targets for con artists.

This day is a call to action for seniors to help empower themselves with knowledge, and for families and communities to become vigilant guardians. Being a victim of fraud can feel like a devastating breach of trust, hindering one’s sense of security and independence. That’s why we’ve put together this guide to help you understand the threat, learn how to spot the red flags, and know what to do if you suspect you are being targeted.

The Threat Landscape: Why Seniors are Targeted

Scammers don’t choose their victims randomly. They use sophisticated psychological tactics that prey on specific vulnerabilities often associated with aging:

• Financial Stability: Many seniors have spent a lifetime saving for retirement, making them attractive targets for high-value theft.
• Trust and Politeness: Older generations were often raised in an era where politeness was paramount, and a person’s word was their bond. Scammers exploit this inherent decency.
• Isolation: Seniors who live alone or are socially isolated may have fewer people to consult about suspicious encounters, making it easier for a scammer to exert pressure.
• Technological Gaps: While many seniors are tech-savvy, rapid advancements in digital communication can leave gaps in knowledge that fraudsters ruthlessly exploit.

Know the Enemy: Common Scam Schemes

Recognizing the script scammers use is half the battle. Here are some of the most prevalent schemes targeting older adults:

1. The Government/Business Impersonation Scam

A scammer calls, emails, or texts pretending to be from a trusted agency like the Social Security Administration, the IRS, the Centers for Medicare and Medicaid Services, or even a local utility company.

• Their Pitch: “Your Social Security number has been suspended,” “You owe back taxes and will be arrested,” or “Your electricity will be shut off in one hour unless you pay.”
• Their Goal: To scare you into giving personal details (SSN, bank info) or making an immediate payment.

2. The Tech Support Scam

A pop-up appears on your computer screen warning of a virus, or you receive an unsolicited call from someone claiming to be “Microsoft” or “Apple” support.

• Their Pitch: “We’ve detected a serious security breach on your computer. You must grant us remote access to fix it.”
• Their Goal: Once they have remote access, they install malware to steal passwords, browse your files, or demand payment for “repairing” a problem they created.

3. The Grandparent Scam

This is one of the cruelest schemes, preying directly on family love and panic.

1. Their Pitch: You get a frantic call: “Grandma/Grandparent, it’s me. I’m in trouble.” The voice (sometimes digitally manipulated) claims they’ve been arrested, are in the hospital in a foreign country, or had a car accident, and need money immediately for bail or medical bills.
2. Their Goal: To trick you into wiring money or sending gift cards before you think to verify the story. They will often tell you, “Don’t tell my parents.”

4. The Romance/Sweepstakes Scam

These scams rely on manipulating positive emotions like love or excitement.

• Romance: A scammer builds an online relationship over weeks or months, only to eventually fabricate a crisis (medical emergency, travel cost) and ask for money.
• Sweepstakes: A call or letter arrives announcing you’ve won a massive prize (lottery, luxury car) from a well-known organization. The catch? You must pay “taxes” or “processing fees” upfront to claim it. Legitimate lotteries never ask for money up front.

Your Defense Manual: How to Avoid Them

Knowledge is one of your best defenses. Incorporate these habits into your daily life to help create a robust shield against fraud:

• Resist Pressure: Scammers often demand immediate action to keep you from thinking clearly or consulting others. Always take a breath. Tell them, “I need to think about this,” and hang up. A legitimate urgency will allow you time to verify.
• Verify Independently: Never rely on contact information provided by the person contacting you. If “your bank” calls about fraud, hang up and call the number listed on the back of your actual debit/credit card.
• Protect Personal Info: Never give your Social Security number, Medicare number, bank account details, or passwords to someone who contacts you unexpectedly—regardless of who they claim to be. Government agencies and legitimate companies will not ask for this information over an unsolicited call or text.
• Guard Payment Methods: Be extremely wary if someone demands payment via wire transfer, cryptocurrency, app (like Venmo/Zelle), or by purchasing gift cards. These methods are virtually untraceable and non-refundable. Legitimate businesses do not accept gift cards for payment, and this is a huge red flag that the person requesting this type of payment is a scammer.
• Consult a Trusted Ally: If something feels off, discuss it with a family member, trusted friend, or financial advisor before doing anything. Scammers rely on keeping you isolated and under pressure.
• Don’t Click Links: Treat unsolicited texts and emails as danger zones. Do not click links or download attachments, as they can install spyware on your devices.

Damage Control: What to Do If You’ve Been Targeted

If you suspect you may have already been scammed or you’ve given out some personal information, do not panic and do not feel ashamed. These are sophisticated criminal organizations; it can happen to anyone. Taking swift action can minimize the damage:

• Stop Communication Immediately: Cut off all contact with the scammer. Do not answer their calls, reply to their texts, or engage with them further. If you can block their number, do so.
• Contact Your Financial Institutions: If you provided bank or credit card details, or made a payment, call your bank immediately using the number on your statement or card. Ask to speak to their fraud department. They can cancel cards, stop payments, and monitor your accounts for suspicious activity.
• Secure Your Accounts: Change the passwords for your online banking, email, and social media accounts. Enable multi-factor authentication (MFA) whenever possible for an extra layer of security.
• Report the Scam: This is vital for helping authorities track down these criminals and prevent others from becoming victims.
  • Local Police: File a report with your local police department.
  • Federal Trade Commission (FTC): Report at ReportFraud.ftc.gov.
  • FBI Internet Crime Complaint Center (IC3): Report online crimes at ic3.gov.
  • Department of Justice National Elder Fraud Hotline: Call 1-833-FRAUD-11 (1-833-372-8311) for personalized support and guidance.

Being watchful and aware of these kinds of scams goes beyond just one day. But on this National Senior Fraud Awareness Day, perhaps you can share this blog with someone you think might benefit from the advice.

Remember that if you receive a suspicious call or a “too good to be true” offer, do not act alone. Make verification your default setting. We don’t want the wealth you have worked so hard to build or the financial future you’ve planned for your family to be spoiled by ill intentions. As your financial team, we can be part of your line of defense.

Sources:

https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2025/08/false-alarm-real-scam-how-scammers-are-stealing-older-adults-life-savings

https://www.ncoa.org/article/top-5-financial-scams-targeting-older-adults/

https://www.cnbc.com/2025/12/13/financial-fraud-seniors-ftc.html

The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed. This material is intended for educational purposes only and is not intended to serve as the basis for any purchasing decision.

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