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aging

Q&A: A greedy friend eyes a suitcase of (suspected) drug money

July 1, 2024 By Liz Weston

Dear Liz: A person I know who is in his 80s and very wealthy recently described having a suitcase of old cash. The bills date from the time before the electronic strip was introduced. He said, “I don’t know what to do with this.” Long ago he sold marijuana. I immediately thought that this should pass into the hands of those who are struggling (which includes me). How could this be done legally?

Answer: Your acquaintance should talk to his tax pro. Money is supposed to be declared to the IRS as it’s earned, and that includes proceeds from illegal activities.

There are statutory limits to how long a person can be prosecuted for dealing drugs. There’s no statute of limitations, however, if a taxpayer files a fraudulent return or fails to file a return at all. That’s how the feds ultimately got gangster Al Capone: He was convicted of tax evasion for failing to file tax returns declaring his illegal income.

What your acquaintance should not be doing is talking to anyone else about this cash — particularly someone whose immediate thought is how to get their hands on it. He should consider getting evaluated for cognitive decline, and putting measures in place to protect himself from fraud and elder abuse.

Filed Under: Q&A, Taxes Tagged With: aging, cognitive decline, IRS, paying taxes, Taxes

Q&A: Is getting old reason enough to cancel some credit cards?

June 10, 2024 By Liz Weston

Dear Liz: Recently, someone asked if closing a credit card would be worth the hassle and you responded that there is no compelling reason to do so and in fact, it might hurt your credit scores. As an older person, I can think of two good reasons: theft and fraud. Many of us of a certain age no longer carry a mortgage or other debt. But, I am finding it harder to keep track of my finances. I would like to cancel three of my five credit cards for that reason.

Answer: You misquoted my response. What I actually wrote was, “If there’s no compelling reason to close a card, you might consider leaving the account open and using the card occasionally to prevent the issuer from closing it.”

Wanting to reduce your risk is reason enough to close a card account. All of us would be smart to consider simplifying our finances as we get older, says Carolyn McClanahan, a certified financial planner and physician in Jacksonville, Fla.

You also might think about who could help you manage your finances as the task gets more difficult. A legal document called a power of attorney allows you to name a trusted person to take over should you become incapacitated. You can familiarize this person with your finances and consider giving them online access to your accounts so they can help you spot fraud, theft or missed due dates. Involving them now, when you can help guide them, is generally better than waiting for a crisis and hoping they can figure everything out on their own.

Filed Under: Credit Cards, Q&A Tagged With: aging, cancelling credit cards, cognitive decline, Credit Cards, Credit Score, Credit Scores, credit scoring, Estate Planning, managing finances, power of attorney

Wednesday’s need-to-know money news

July 24, 2019 By Liz Weston

Today’s top story: Keeping Solo Agers happier and safer. Also in the news: A simple recipe for managing your credit score, how to choose between using your savings or getting a loan when hit with an unexpected expense, and how a few minutes on the phone could save you hundreds on auto insurance.

Keeping ‘Solo Agers’ Happier and Safer
Preparing for the Golden Years alone.

A Simple ‘Recipe’ for Managing Your Credit Score
3 ingredients.

Savings or loan: which should you turn to when hit with an unexpected expense
Making the wise decision.

Those car-insurance commercials aren’t kidding: A few minutes on the phone really can save drivers hundreds of dollars
You could save a significant amount of money.

Filed Under: Liz's Blog Tagged With: aging, auto insurance, Credit Score, savings vs loan, solo agers, unexpected expenses

3 steps to keep ‘solo agers’ happier and safer

July 16, 2019 By Liz Weston

Retirement coach Sara Zeff Geber visited several Northern California assisted living facilities to interview “solo agers” — people, either single or coupled, who don’t have children to help them as they grow older.

At many facilities, she couldn’t find any. That puzzled her until she realized that adult children are often the ones pushing the move into long-term care facilities.

“Who is it that gets mom or dad to move out of the two-story, single-family home?” says Geber, founder of LifeEncore coaching service in Santa Rosa, California. “The kids badger and cajole.”

In my latest for the Associated Press, how ‘solo agers’ can protect themselves and live a happy life on their own.

Filed Under: Liz's Blog Tagged With: aging, assisted living, baby boomers, solo agers

Wednesday’s need-to-know money news

October 9, 2013 By Liz Weston

Zemanta Related Posts ThumbnailProtecting yourself from insurance fraud, the best time to close a credit card, and when straying from your monthly budget can be a good thing.

What You Should Know About Buying a Fixer-Upper
Don’t let your new purchase become a money pit.

Eight Ways to Help Protect Yourself From Insurance Fraud
How to avoid becoming a victim.

How aging impacts our financial decisions
Some of the first warning signs of cognitive decline can be found in how we manage our finances.

Is There Ever a Good Time to Close a Credit Card?
The answer may surprise you.

When Trying to Stick to a Monthly Budget Just Doesn’t Make Sense
Preparing for life’s stumbling blocks.

Filed Under: Liz's Blog Tagged With: aging, Credit Cards, insurance fraud, monthly expenses, real estate

Thursday’s need-to-know money news

June 13, 2013 By Liz Weston

Old Woman Hand on CaneTips on staying debt free, managing an aging parent’s finances and the importance of “the money talk” before heading down the aisle.

How to Stay Debt-Free

Small steps you can take to stay out of debt.

Does This Smell Bad to You? How Long Foods Last

Tips on how to save money by not wasting food.

10 Items Whose Prices Have Jumped the Most in the Past 10 Years

Gasoline, college tuition and…eggs?

Have a Debt Talk Before ‘I Do’

Before walking down the aisle, find out where you both stand on past, present and future debt.

How to Approach Aging Parents’ Mental Decline

Advice on how to deal with parents’ compromised financial situations in a sensitive manner.

Filed Under: Liz's Blog, Saving Money Tagged With: aging, couples and money, debt, inflation

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