​Elders are financially defrauded daily in this country. Just a tiny percentage of these crimes are
made public. In fact, the National Adult Protective Services Association (NAPSA) estimates that
only 1 in 44 cases of elder financial abuse are reported. A recent NAPSA study found that 11%
of seniors had been financially “abused, neglected or exploited” within the past year. 1

Friends, family and caregivers perpetrate much of this financial abuse. They commit 90% of it,
NAPSA estimates. Major damage may result to an elder’s finances and physical and mental
health: victims of elder financial exploitation are four times more likely to go into a nursing
home than their peers, and nearly 10% of the victims end up relying on Medicaid. 1

Frauds range from big scams to little schemes. You likely know about the common ones: the
grandparent scam (“Grandpa, I’m in jail in _____ and I need $___ to make bail”), the utility
company scam (one criminal keeps the elder busy in the yard as the other burglarizes their
home), the lottery scam (a huge prize awaits, the elder need only pay a few thousand upfront
to take care of associated taxes). Others are subtler: home health aides severely overcharging
an elder for their services, relatives or caregivers using a financial power of attorney to draw
down an elder’s bank or investment accounts.

Talking about all this may help to prevent it. Perhaps the best way to introduce the topic is by
referring to what happened to someone else – a story coming up on the news or in the paper,
an article online. AARP’s Fraud Watch Network emails a monthly newsletter highlighting
common scams; it also maintains a map showing per-state occurrences of such crimes. 2

A 2014 Allianz Life survey discovered something very encouraging. Seniors who have talked
about the issue of financial exploitation with others seem less likely to succumb to it, especially
seniors who have talked about such risks in the company of a financial professional. 2

The insurer asked more than 2,000 Americans about their awareness of financial fraud – men
and women aged 65+, and select family members and friends aged 40-64. It found that 97% of
seniors who talked about finances with a hired professional were likely to check their monthly
credit and financial statements, while only 84% of those who talked about their finances with
no one were likely to do so. It also found that 93% of seniors who communicated with a hired
professional were likely to refrain from signing a financial document they could not fully
understand; that was true for just 82% of seniors who had never addressed financial topics in
the company of professionals, friends or family. 2

Another pair of examples: 85% of elders who discussed personal finances consistently shredded
or destroyed sensitive financial paperwork while just 69% of those who refrained from such
discussion did. Thirty-seven percent of seniors who talked about their finances with a
professional were also more likely to have a co-signer for their bank accounts, as opposed to
14% of those who were handling their personal finances solo. 2

Have the conversation; have a look at Mom or Dad’s financial situation. It is only prudent to
do so. The National Center on Elder Abuse says that the average financial fraud perpetrated on
an elder siphons $30,000 out of his or her finances. Think about how devastating that is,
especially for a poorer retiree; that may equal a year’s worth of medical expenses, a majority of
an elder’s yearly income, or a double-digit percentage of his or her remaining retirement
savings. Elders rich and poor need to be warned about such crimes. 3

Tom Chancellor is a Certified Financial Planner Professional helping clients enhance their financial peace of mind. Tom spent 20 years as a marriage and family therapist and now incorporates resources from psychology, communications, and relationship studies in financial planning for people who experience life-changing events. Tom helps his clients and other financial professionals respond to life transitions such as divorce, death of a spouse, retirement, receipt of an inheritance and legal settlements. Contact Tom with questions at tom@teaktreecapital.com.
 
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany,  NJ 07054,1-800-637-3211.  Member FINRA/SIPC. Teak Tree Capital Management, LLC,  is independent of CAMAS.
 
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Citations.
1 - napsa-now.org/policy- advocacy/exploitation/ [4/30/15]
2 - allianzlife.com/about/news-and- events/news-releases/preventing- elder-financial- abuse [4/20/15]
3 - tinyurl.com/p4y6pa7 [4/20/15]

The probability that a marriage will end in divorce has reached as high as 48% in recent years. Working with a couple who is going through a divorce can pose a problem for a financial advisor. The original task was managing one asset base, but those accounts now must be divided, without bias from the professional. Sometimes an advisor needs advice.
 
 
Understanding Conflicts of Interest
 The Certified Financial Planner Board is clear on their stance regarding conflicts of interest arising from divorce. The CFP states, “If a conflict of interest exists, the CFP® professional should evaluate whether he/she can continue to advise the client without impairing his/her ability to offer objective advice, recommendations or services.  In all cases, the CFP® professional must disclose the conflict.” In the case of a divorce, the advisor must remain a neutral party.
 
The financial advisor can execute the final wishes of the divorcing couple. However, a CFP will have difficulty arriving at this point while abiding by the CFP Board standards. CFP and divorce attorney Violet Woodhouse remarked, “In a divorce, they [the couple] will have adverse interests, and you can't show a preference. Remember that there is no privilege between a financial planner and a client, as there is between an attorney and a client, so there's no confidentiality. That should be disclosed to your clients." What can a financial planner do to facilitate an agreement between two people with contradictory wishes? Ethical and professional standards are not in support of a financial advisor single-handedly managing two different goals for a client that was originally identified as one entity.
 
 
The Value of Support in Conversations Surrounding Divorce
 To remain outside of the conflict, an advisor might consider bringing in another professional to help the couple work towards a financial agreement. If you have clients that are stuck, a professional who specializes in resolving financial conflict can help them come to a place where they are prepared to move forward.
 
This type of arrangement is constrained to a set amount of time or number of meetings, and it adds additional benefit to a couple going through divorce even if they are seeing a therapist and an attorney. A financial professional understands the details and complexity of dividing assets in a way that will lead to thorough consideration of what is being split. The financial professionals agree that the clients return to their original advisor with an agreement and plan of action in place.
 
This agreement offers great value to all involved. The financial advisor can remove himself or herself from the equation which protects them against accusations of conflict of interest and avoids the liability of any ethical missteps. Additionally, it provides a forum for the divorcing couple to untangle the commingling of emotions and financial assets. Often the financial battle is rooted in these emotions rather than true budgetary needs.
 
 
Addressing a Divorce Means Addressing Finances
While floundering finances may have accelerated the move to a divorce, it is also likely to slow the process later. This is where a specialized financial advisor can offer great insight. A study conducted by the Institute for American Values underscores the impact finances can have on a marriage. The findings show that "…debt is associated with less time spent together, more fighting, and significantly lower levels of marital happiness among these couples.” The professional acumen of a financial advisor is a critical step in finalizing a plan to split assets. Poor communication at the end of a marriage often requires this third party involvement.
 
There can be an honest discussion about money once the couple has engaged a truly neutral financial professional. If the couple’s current advisor worked more frequently with the husband rather than the wife, or vice versa, the person who has participated less in the advisory relationship may feel they are at a disadvantage when negotiating the split of assets.
 
 
 Committing to a Plan
 No matter how contentious a divorce has become, it may be best to get it resolved and move on. The early stages represent the best opportunity for success. Resist the common urge to use money as a weapon. In a divorce the goal is to separate permanently from a partner; squabbles over money make this difficult. Leveraging money as a resource to force another into submission will not work. A financial advisor who specializes in managing transition through conflict can act as a mediator so that both parties can reach an amicable agreement on how to divide assets.
 
 
 
Tom Chancellor is a Certified Financial Planner Professional helping clients enhance their financial peace of mind. Tom spent 20 years as a marriage and family therapist and now incorporates resources from psychology, communications, and relationship studies in financial planning for people who experience life-changing events. Tom helps his clients and other financial professionals respond to life transitions such as divorce, death of a spouse, retirement, receipt of an inheritance and legal settlements. Contact Tom with questions at tom@teaktreecapital.com.
 
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany,  NJ 07054, 1-800-637-3211.  Member FINRA/SIPC. Teak Tree Capital Management, LLC,  is independent of CAMAS.
 
 

According to the U.S. Census Bureau, the median age of widowhood is around 60. Women on
average live longer than men and most marry older men. When a spouse dies, financial
decisions have to be made, and that can be hard, especially for women who haven’t been
closely involved family finances. Getting back on your feet, and re-organizing your financial life
can also be rewarding. It can give widows a sense of control and confidence in managing their
future. As you take steps towards a new life, a financial advisor can provide guidance on all
there is to accomplish. A new level of engagement in your financial life may be required, and it
is important to take the time to educate yourself on what you need to tackle immediately and
what you need to be doing long term. 

Understand what cash and expenses you currently have.
Make sure you have access to all of your accounts. Get a clear picture of reoccurring expenses
and outstanding financial obligations. There may be some expenses you can cancel such as gym
memberships, professional journal subscriptions and club and professional association
memberships. Often, these dues can be terminated without any further obligation in most
cases. Look into the values and placement of additional assets, such as stocks and retirement
accounts.

Identify and pursue all available survivor benefits.
You may have financial benefits from life insurance policies, your spouse's employer or social
security. You will need to know what to expect, who to contact, and how to receive these
benefits. Notify the life insurance company to make a claim. You can reach out to the HR
department of your late spouse’s employer to learn about potential pensions and other
benefits. Ask about their accessibility and what’s involved in transferring them to you. If your
health insurance was provided through the employer, ask for details about the continuing
coverage and how you can move the policy. You may be eligible to receive social security
benefits from your late spouse’s accounts, in addition to your own, even if you are not yet at
full retirement age. If applicable, check into survivorship benefits available to the spouses of
veterans.

Get expert advice.
Understanding your current state will allow you to get a better handle on long-term options.
To create a long-term plan thoroughly—especially if you haven’t been managing the family
finances during your marriage—you’ll probably need expert advice. Your financial advisor will
be able to help with creating a budget, planning for future expenses and managing your
investments. They can help you see an achievable vision of your future. Then you can begin
work on a feasible plan to realize that vision.

A good credential to look for in an advisor is the Certified Financial Planner (CFP). This
designation is a sign of extensive training and experience requirements and advisors with this
credential are held to rigorous ethical standards. When selecting an advisor, look for someone
with experiencing helping others in similar situations as yours, someone with whom you can
communicate, and an advisor who is transparent about the fees charged.

Be aware that transferring assets or withdrawing cash from your accounts without knowing the
legal, tax and strategic investing implications can cause financial problems down the road. It's
best to get advice first and act afterward. Your optimal financial plan may be a lot different than
that of your late husband. You are in a new stage of life that deserves assessment on its own.
The plan might have to include less risk, and if your spouse was still working, the plan will
include less income than you expected to have. Evaluating these elements is crucial for your
financial health.

Tom Chancellor is a Certified Financial Planner Professional helping clients enhance their financial peace of mind. Tom spent 20 years as a marriage and family therapist and now incorporates resources from psychology, communications, and relationship studies in financial planning for people who experience life-changing events. Tom helps his clients and other financial professionals respond to life transitions such as divorce, death of a spouse, retirement, receipt of an inheritance and legal settlements. Contact Tom with questions at tom@teaktreecapital.com.
 
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany,  NJ 07054,1-800-637-3211.  Member FINRA/SIPC. Teak Tree Capital Management, LLC,  is independent of CAMAS.

As a CERTIFIED FINANCIAL PLANNER™ professional and former therapist, I am all too
familiar with the hurdles, challenges, and transitions — both expected and unexpected --
people face throughout life. Much of my practice is focused on helping people of all ages and
from all backgrounds in negotiating jarring life events, from the traumatic loss of a spouse or a
divorce to an exciting job promotion or retirement arrival. Whether positive or difficult, the
experience of crossing over to the unknown can be disorienting, no matter how organized or
confident you may be.

While transitions are difficult, there are a few ways you can make the process smoother and
less challenging. By following these five steps, you’ll have a better chance at crossing the bridge
and making a successful life transition.

Be Clear in Your Intentions
Planning and consciousness are the two key ingredients for successfully surviving a major life
shift. You have to know what your goal is and then create a plan on paper for how to get there.
The best plans have a specific goal in mind. Saving more money or retiring early won’t do you
much good when creating a financial plan. Before you can implement a strategy and start
making a transition, you need to know what you want to accomplish. Not sure how to formalize
your goals? Speak with a financial advisor. Once he or she understands your current
circumstances and needs, you can work together to identify realistic and concrete objectives,
whether that’s retiring at age 60, saving up for a year-long world travel adventure, buying a
second home, or maintaining your current lifestyle post-divorce.

Have a Backup Plan
A flexible plan and an emergency reserve go hand-in- hand when it comes to feeling confident
and at peace with your financial roadmap. As explained earlier, change can happen at any time
and, often, these life changes affect your finances. Perhaps your child decides to attend a
private university instead of a state college that provided a scholarship. Or, maybe you or your
spouse has to take time off from work due to a disability. It could be your financial priorities have
changed. Regardless of why it’s important to have a financial plan that’s robust enough to
endure changes but flexible enough to adjust when needed. And an emergency reserve can
help fund any unexpected expenses.

This is one reason why it’s important to build a long-term relationship with your advisor. As your
situations change, your advisor can help you reevaluate your investment portfolio and strategy
and determine whether or not they need adjusting.

Prepare for the Inevitable
We can’t predict most things in life but, we do know everything eventually comes to an end. As
we age, we may fall ill or incur a disability, and eventually, we all die. Perhaps because of the
grim nature of this conversation, too many people have yet to draft or update their legal
documents, such as their will and estate plan. By waiting too long, you could put your family and
beneficiaries in a tough situation. Make an appointment with your attorney or estate planner to
review or create your will, assign health care directives, name a power of attorney, and review
your beneficiary designations. Being prepared can help you feel much more confident knowing
that your affairs will be handled more smoothly and that you can leave a legacy to your loved
ones.

Hope for the Best, Plan for the Possible
Most of us don’t purchase auto insurance because we anticipate crashing, nor do we buy house
insurance because we expect an accident. Insurance is designed to protect ourselves, our
property, and others in case the worst should happen. Too often, men tend to be the financial
managers of their household. When widowed or going through a divorce, women may have
trouble finding out what policies their family has and what they need now in their new situation.
This can be challenging and overwhelming, especially during a time when they are already
mentally and physically devastated. Regardless of whether you or your spouse was the financial
manager of your household, it’s essential that both of you get on the same page with your
accounts, assets, debts, cash flow, taxes, and insurance policies. Establish relationships with
your tax professional, attorney, and financial advisor to help in each area.

One of the simplest ways to help alleviate this stress is to take charge of your future and
potential accidents now. From auto and home insurance to life and long-term care insurance,
evaluate the options available and what makes sense for your situation. Even if you don’t end
up having to use certain policies, you can feel much more confident knowing they’re there for
you, just in case.

Take it Slow
The only sure thing in life is uncertainty. If you find yourself caught in the powerful currents of a
major life event, you may flounder. Or if you find yourself with money and freedom to which you
aren’t accustomed, you might get carried away with the exhilaration of the ride. Transition
experts recommend that you relax and take it slow. Give yourself time to digest the changes
before making substantial commitments or adding on more changes like creating a new lifestyle.
Use the resources you developed in preparation to handle immediate necessities, such as filing
insurance claims, probating an estate, or transferring or opening accounts.

Simultaneously, take good care of yourself physically, mentally, and emotionally. Your mind is
already busy enough during times of transition rearranging things and looking for possible
threats. We may not be aware of this happening in our minds, but nonetheless, they consume a
lot of our brain’s processing capacity. Avoid any overly taxing tasks and let your mind do its
work. Do the things you enjoy to create some mental space, whether that’s exercising, cooking,
or gardening.

Next Steps
With these five steps under your belt, you are well on your way to transitioning through one of
life’s many changes. Refer back to these steps as you progress and, if you know someone else
experiencing a transition, share this with them. And whenever you, or a friend or family member,
needs to speak with an advisor with an open ear, don’t hesitate to call me at 817.744.8450 or
email me at tom@teaktreecapital.com.

Tom Chancellor is a Certified Financial Planner Professional helping clients enhance their financial peace of mind. Tom spent 20 years as a marriage and family therapist and now incorporates resources from psychology, communications, and relationship studies in financial planning for people who experience life-changing events. Tom helps his clients and other financial professionals respond to life transitions such as divorce, death of a spouse, retirement, receipt of an inheritance and legal settlements. Contact Tom with questions at tom@teaktreecapital.com.
 
Securities offered through Comprehensive Asset Management and Servicing, Inc. (“CAMAS”), 2001 Hwy 46, Ste. 506, Parsippany,  NJ 07054,1-800-637-3211.  Member FINRA/SIPC. Teak Tree Capital Management, LLC,  is independent of CAMAS.