People often ask me where I get the ideas for my columns and newsletters. What’s happening with my household finances generates a lot of ideas, as do readers through their e-mails and comments on social media and media relations people in the financial industry. Also, I have a network of advisers who reach out now and again to point out interesting things that are happening.
An adviser I’ve been corresponding with for ages is Tony De Thomasis of De Thomas Wealth Management in Richmond Hill, Ont. He e-mailed recently and mentioned something that jumped off the screen. He said that as his clients age, he’s hearing more stories from them about scam e-mails, phone calls and more. “These seem to worry them more than anything else,” Mr. De Thomasis wrote.
We’ve heard a lot about how scams targeting the elderly have been on the rise. But this is the first time I’ve heard about the mental toll on seniors from this trend. To get more information, I invited Mr. De Thomasis to do an e-mail Q&A for the newsletter. Here’s an edited transcript of our exchange:
Q: Tony, tell us a bit about your story as an adviser. How long have you been in the business, and how old are your clients typically?
A: I started in 1977 and my clients grow old with me. The average age is between 60 and 80.
Q: You mentioned that your aging clients seem more worried about scams than anything else. What are they telling you about this concern?
A: Every company wants them to go online – no more paper, no more personal contact, all digital. Many older clients don’t trust e-mails. They’re afraid to go only online in the event they make a mistake, or they get hacked. They forget passwords and get nervous with technology.
Q: How are your clients being approached by scammers?
A: E-mails saying they need to release funds from an inheritance by paying to get a will read and an estate settled. Calls that their grandchild needs money to help them – please send a wire transfer. Calls and e-mails their credit card has been compromised. There are also CRA scams – pay now or else face severe interest penalties.
Q: Have any clients been caught in a scam and, if so, how did it work?
A: The biggest was a potential deposit of $50,000 from an inheritance, but the client needed to pay $2,000 duty to get it released. Later, the value was more than the original $50,000, with the amount needed to get the excess released now at $10,000. The scammers kept escalating the amounts and the client lost $50,000. I called police, but they said they couldn’t do anything unless the client logged a compliant. He was too embarrassed to do anything.
Q: What are you doing as an adviser to help your clients avoid scams?
A: Clients are told to call us for anything that may seem out of the ordinary, especially if someone asks them for money and even if it seems legit. We tell them not to reply to any e-mail or telephone call if they don’t recognize the person. With CRA, we tell them to wait for a letter before doing anything.
Q: Any other advice for seniors about avoiding scams?
A: Talking to two other trusted people about the situation is the best protection. Gives you time to reflect and ponder the next course of action.
Let’s talk: A national conversation with Gen Z (and the generation who raised them)
My colleague Erin Anderssen invites you to participate in a survey as part of an ongoing Globe and Mail project on the aspiration and attitudes of young Canadians today, and their parents. There is a parent-focused survey, and a separate Gen Z survey for those between the ages of 15 and 29. Choose the one that fits. The survey takes about 10 minutes, covering a wide range of topics, from the pandemic to climate change, jobs to mental health, and will help shape coverage of these issues in the year ahead. We hope you will share your thoughts.
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Rob’s personal finance reading list
The most important skill for financial success
Jonathan Clements, a long-time personal finance writer for The Wall Street Journal, on his new book about retirement. He says the most important financial skill is to live below your means and delay gratification. Clearly true, but hard to do in a world where consumption is so conspicuous.
So much for free returns of online purchases
This had to happen – retailers are starting to charge a fee to return items ordered online. So ends the golden era of online shopping.
Micro weddings are here to stay
To keep costs manageable in these inflationary times, couples are buying into the micro wedding trend that emerged in the pandemic. The starting point is fewer guests.
Farewell to The Blunt Bean Counter
I have included a lot of posts from accountant Mark Goodfield’s blog in this newsletter over the years because he had a knack for making his topics clear and interesting. Here’s his final post.
Ask Rob
Q: I have two questions about my $150,000 non-registered joint account. It holds seven mutual funds, with two funds being balanced funds. My first question: Is it unwise to hold balanced funds in a non-registered account? Second, is it OK to want to re-invest the dividends instead of taking dividends in cash?
A: Balanced funds in your non-registered account are fine. A tax-free savings account would be ideal because, obviously, there would be no tax on the capital gains, dividends and bond interest paid by a balanced fund. As for reinvesting dividends, go for it. One of the big benefits of mutual funds is that you get the option of no-cost dividend reinvestment.
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length and clarity.
Tool, explainers, guides
A financial literacy guide for seniors, offered by the non-profit Canadian Foundation for Economic Education. Modules on government pensions, budgeting, borrowing and where to get help.
The money-free zone
The Memphis gospel singer Elder Jack Ward passed away in April, but his latest album was just released. It’s called The Storm and it’s worth a listen from top to bottom. The cut I’m enjoying most is Payday After While – it rocks.
Listen to this
A podcast about what happens to your debt after you die.
From the Twitterverse/LinkedIn
A sign of post-pandemic financial normalization – the savings rate has fallen sharply.
In case you missed these Globe and Mail personal finance-related stories
- How much money do I need to take a career break?
- Don’t let closing fees catch you off guard when buying a home
- Estate planning hurdles are different for LGBTQ couples. Here’s how
- Canada’s much-touted labour shortage is mostly a mirage
More Rob Carrick and money coverage
Subscribe to Stress Test on Apple podcasts or Spotify. For more money stories, follow me on Instagram and Twitter, and join the discussion on my Facebook page. Millennial readers, join our Gen Y Money Facebook group.
Even more coverage from Rob Carrick:
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- ✔️ The housing file: A house isn’t special. Get your head straight about the reality of home ownership • The good, the sad and the unaffordable: Saving for a home down payment in Canada’s big cities • Property taxes are popping in some cities – how worried should you be about other tax hikes? • Our other real-estate problem – people have too much wealth tied up in houses • Borrowers and savers, here’s how to time the eventual rollback of interest rates
- 📈 Investing: Canada's top digital broker is TD Direct Investing, with an assist from the TD Easy Trade app • 2023 Globe and Mail ETF buyer's guide part one: Canadian equity ETFs • For the ultimate in cheap investing, check out the Freedom .08 ETF Portfolio • Yes, there is risk in Canadian bank deposits for the unwary and complacent • CDIC covers bank deposits, but who protects your investments if your broker goes bust? • Answers to your questions about the low-risk ETF paying almost 5% • Happy fifth birthday to one of the all-time best investing products for everyday people • An investing strategy that wins cleanly over the long term by outperforming in bad years like 2022
- 💰 Your money: Mortgage holders, savers and GIC investors, it’s time to change your thinking on interest rates • How much debt is each generation of Canadians carrying, and how do you compare? • For the sake of their financial futures, young people should leave Toronto and Vancouver • This practical new spin on a savings account might just peel you away from your big bank • Rental fraud grows amid rise in fake, falsified tenant applications • Are Canadians worse off financially now than in the 1980s? • From groceries to auto loans, here’s how much more it costs to live right now • When saving for retirement, should you change your asset mix over the course of your career? • Do retirement income needs always rise alongside inflation? Not necessarily • When the bank suggests you lock in your variable rate mortgage, it has an angle
