Page 43 - Provoke Magazine Vol2

the potential for abuses involving the sale of complex prod- ucts is high. Unit investment trusts, real estate investment trusts, alternative investments, and structured products have many disclosures. These investments are not suitable for everyone. The presentation of the associated risks and factors should be understood before purchasing. Some- times the associated details for these products are confusing to the most experienced investor. Attempting to coax a per- son with a diminished capacity to purchase these securities may qualify as a high-pressure sale disciplined by securities regulators.
Another high-pressure sales tactic is the use of senior des- ignations, such as Certified Senior Adviser, to imply a supe- rior skill in the management of investments. Not all finan- cial designations are sponsored by credible institutions. A rigorous designation will often include a qualifying exam- ination, ongoing education requirements, and a presiding ethics committee to hold the designee to the highest stan- dards. Certifications like the Certified Financial Analyst and Certified Financial Planner are common designations that focus on the financial skill of the individual.
WEALTH TRANSFER
The last proactive step we can take is to be prepared. It is not often that we discuss the death of a parent before the actual event. The conversation can be emotionally chal- lenging, but one should take time to discuss the financial consequence of death during life. Hold a family meeting to determine who will be the estate executor. Let the living determine the distribution of wealth.
There are tax consequences to estate distributions. Plan now on how to best distribute wealth with the most bene- fit to the recipient. Most financial institutions will freeze assets of a decadent until the proper paperwork is on file. Create a checklist to guide you through the process. Un- derstand that there are many options in the transference of wealth and a qualified adviser can help you make the right decision. Make sure to research the qualifications of your financial adviser with a federal or state securities regulator. Taking a responsible and active approach in the financial well-being of our aging loved ones could halt unwarranted financial abuse.
Shawn Washington
Information contained herein should not be considered as investment advice or a recommendation of any strategy or investment prod- uct. To report concerns with elder abuse and financial exploitation and investing contact the Financial Industry Regulatory Authority Securities Helpline for Seniors at www.finra.org.
Provokeusmag.com 43