Smart money strategies for seniors

Joel Doelger has a heart for helping seniors maintain a decent standard of living in retirement. He’s the community relations director for Credit Counseling of Arkansas (CCOA), a nonprofit in Fayetteville that offers free budget, debt management and credit counseling. Below are some strategies he recommends for enjoying ¿nancial health in the golden years.

1. “Beware of scams!” Seniors should arm themselves with information to avoid being robbed. Credit Consumer Action and AARP are sources that “do a nice job of bringing awareness of those scams to the public.” (See the article on page 14 of this supplement for more tips on avoiding scams.)

One measure Joel proposes is to “put a freeze on your credit reports.” Thieves try to purchase expensive items by using a person’s identity to access their credit, then ¿ll out an application. If everything looks good, Joel says, “they’ll open an account in your name, take home a big TV screen and you get billed for it.” There’s no charge to get a credit freeze, and it’s an effective way to keep merchants from accessing personal information to determine credit worthiness. “As a result, they’re not going to open up a line of credit in your name without being able to check that,” he advises.

2. “Get in the habit of creating and following a budget.” Take advantage of online tools like the Consumer Financial Protection Bureau (www.consumer¿nance.gov ). Many people think of setting up a budget as a one-time deal, “but it should be an ongoing exercise” to help with spending choices to make sure goals are met. It also ensures that money isn’t “falling through your ¿ngers without your being aware of it.” Joel urges seniors to leave a cushion so “you’re not living on the edge,” especially during times of increased inflation.

3. “Say no to your children and grandchildren.” It disturbs Joel to see a senior citizen struggling ¿nancially because they’re supporting “a child or grandchild who doesn’t know how to manage their own ¿nances.” In such cases, tell them, “I’m sorry, that’s the end.”

4. Get unbiased counseling if you’re considering a reverse mortgage. CCOA is a HUD-approved counseling agency and is neither for or against reverse mortgages. “We receive no benefit either way,” Joel points out. “We sit down with seniors who are interested in doing this to find out what their financial goals are, what they might need the reverse mortgage for, and talk about other alternatives that might be cheaper in the long run.”

For more information, contact Credit Counseling of Arkansas at 479-521-8877 or ccoacares.com.