The Senior Scene

Among predictions for the 2020 holiday season, the pandemic is expected to set new records for e-commerce while straining delivery capacity. It also has people re-evaluating what really matters in their lives.

Every crisis presents us with opportunities. The pandemic has resulted in a jump in the savings rate, most of which is in accounts earning little to nothing. And the shutdown made many of us realize that we can get by just fine without some of the things we once viewed as necessities.

Now is a good time to start thinking about better ways to celebrate. Here are some tips for creating holidays with meaning that won’t leave you drowning in bills in the new year:

1. Wants vs. needs.

Those slick Madison Avenue types would have us believe that we need lots of things, from the latest techno-gadget to that trendy new shoe. They tell us that we’re not sexy/successful/cool without what they’re selling. What do we really need? Stop and think about it and get clarity for yourself. And if you have children, teaching them the difference between needs and wants will empower them for life.

2. Curb the impulse, break the spell.

Next time you feel the urge to buy something you hadn’t planned to buy, simply clench your fist or flex your bicep. Voila! The spell is broken and you can actually think clearly again.

3. Wrap your charge cards.

Some financial advisors tell you to leave your cards at home to avoid temptation. I prefer to wrap my cards in my goals. Every time I take a card out, I see a picture or some words that represent a goal that’s important to me. I get the opportunity to stop and decide whether what I’m about to purchase is more important than that goal. If it is or it doesn’t undermine my goal, I might go ahead and buy it. If it isn’t, I get the satisfaction of knowing I’m a step closer to my goal because I chose to not purchase the item.

4. Distinguish “big happy” From “little happy.”

The Big Happy for most of us is having memorable experiences and being with the people we love. That other stuff we chase? That’s usually Little Happy – fleeting and not very fulfilling.

5. Be consistently, consciously grateful.

When we practice gratitude, our self-esteem is greater and we just generally feel happy and appreciative of many aspects of our lives. Because of this, we’re less likely to crave material goods to feed an emotional need. And studies have shown that having a grateful attitude actually enhances our ability to make good decisions.

6. Create value comparisons.

Rather than falling for some marketer’s value comparison, how about setting up your own? Put a price tag on some things you really enjoy and value.

7. Know your spending triggers.

Do you feel driven to buy extravagant gifts as soon as holiday decorations pop up in the stores? When you have a rough day, do you crave some retail therapy to feel better? When you’re out with old friends, do you order the most expensive item on the menu? Are you triggered to overspend in a bookstore, hardware store, or swap meet? Know thyself — and especially know your spending triggers so you can outwit them.

Right now — before we lose the lessons of the pandemic — is the time to double down and take the steps needed to gain control of your finances and set yourself up for a financially stress-free future.

 

 Pamela Yellen, who wrote this article, is an author (“Rescue Your Retirement: Five Wealth-Killing Traps of 401(k)s, IRAs and Roth Plans — and How to Avoid Them”) and a financial-security expert.

The holidays are here, but unfortunately, so are the con artists looking for opportunities to spoil your celebrations. They are more than willing to use the joyous mood to get into your wallet. But with a little preparation and vigilance, you can cut down on the threat of becoming a scam victim.
• Charity scams. Legitimate charities make a big push at year-end for last minute annual donations. Scammers know this and make their own end-of-year push to line their own pockets. Before making a donation, experts recommend using charity-rating sites such as Give.org or CharityNavigator.org to make sure the solicitation is from a legitimate organization. Also check with the the Washington secretary of state’s office at www.sos.wa.gov/givesmart or by calling 1-800-332-4483 to make sure the charity is registered with the state.
• Package delivery scams. Thieves send fake e-mails from delivery services about a package being held pending delivery. The e-mail directs you to click on a link that asks for your credit card or other personal information. Closely review the e-mail. Check the sender information, look for misspellings, and hover over the link with your mouse to see if it is really taking you to the delivery service’s website. Also, request signatures for deliveries to stop thieves from stealing packages from doorsteps.
• Too-good-to-be-true online deals. Online ads, e-mails, social media posts – even from people you “know” — of impossibly good online deals could be scams. You might get nothing for your money or an inferior item, and your credit card number could be compromised during the transaction. A too-good-to-be-true deal should send up a red flag.
• Public wi-fi risks. Making purchases online while on public wi-fi is dangerous. Only shop on public wi-ii if you have a “Virtual Private Network” on your device and it is turned on. When you do shop online, stick with credit cards. You are liable for only up to $50 of fraudulent use, but your financial loss with a stolen debit card could be much higher.
• Gift card scams. Thieves can hit store gift card racks, scan the numbers off the cards, then check online or call the toll-free number to see if someone has bought and activated the cards. As soon as a card is active, the scammers drain the funds. By the time your gift recipient tries to use the card, the money is long gone. Before purchasing a gift card, be sure to check the back to make sure the activation code hasn’t already been revealed. Also consider skipping the large gift card racks in grocery and big box stores, and purchase them directly from the store clerk or buy them online.
• Romance scams. A perennial scam, the romance scam heats up around the holidays. Watch for people you meet on dating sites who quickly want to take your conversation offline, who may resist talking on the phone, who say they are abroad and can’t meet you in person, and eventually ask for money – to buy a plane ticket to come see you, or to help with a business venture, for example. Online dating can be fun and exciting, but beware of those who have money, and not love, on their minds.
Visit www.aarp.org/frc for additional tips on avoiding these and other scams and fraud.

 

Jason Erskine, who wrote this article, is the communications director for AARP Washington.

 

WHEN CALLER’S AREN’T THE SOCIAL SECURITY

Scammers go to great lengths to trick you out of your personal information. We want to help you protect your information by helping you recognize a Social Security imposter.

There’s a widespread telephone scam involving callers claiming they’re from Social Security. The caller ID may even show a government number. These callers may tell you there’s a problem with your Social Security number. They may also threaten to arrest you unless you pay a fine or fee using gift cards, pre-paid debit cards, a wire transfer, or cash. That call is not from us.

If you receive a suspicious call from someone alleging to be from Social Security, please:

Hang up right away.

Never give your personal information, money, or retail gift cards.

Report the scam at oig.ssa.gov/ to Social Security’s law enforcement team at the Office of the Inspector General.

Social Security will not:

• Threaten you.
• Tell you that your Social Security Number has been suspended.

Call you to demand an immediate payment.

Ask you for credit or debit card numbers over the phone.

Require a specific means of debt repayment, like a prepaid debit card, a retail gift card, or cash.

Demand that you pay a Social Security debt without the ability to appeal the amount you owe.

Promise a Social Security benefit approval, or increase, in exchange for information or money.

Request personal or financial information through email, text messages, or social media.

Social Security will:

Sometimes call you to confirm you filed for a claim or to discuss other ongoing business you have with them.

Mail you a letter if there is a problem.

Mail you a letter if you need to submit payments that will have detailed information about options to make payments and the ability to appeal the decision.

Use emails, text messages, and social media to provide general information (not personal or financial information) on its programs and services if you have signed up to receive these messages.

More than 40 percent of homeowners in Washington are older adults, reflecting a national trend in which baby boomers–the generation that owns the largest share of homes–are planning to stay put.

A survey in 2018 by AARP found that 76 percent of Americans over the age of 50 prefer to remain in their current home rather than move in with relatives or to some type of assisted living facility. That’s contributing to fewer homes on the market for new, younger buyers, according to a new report by Construction Coverage, a construction industry research organization (constructioncoverage.com).

The U.S. Census Bureau reports the share of homeowners over the age of 55 has been steadily increasing. In 2008, at the onset of the Great Recession, they owned 44 percent of homes. By 2019, that percentage had increased to 53.8 percent. While the share of homeowners under the age of 35 remained fairly steady in the same time span, the share of homeowners between the ages of 35 and 54 decreased from 42 percent to 34 percent.

In Washington, 41.6 percent of homeowners are baby boomers. In all, 769,411 homes are owned by boomers. They rent another 218,300 homes. The share of Washington’s population comprised by boomers—between the ages of 55 and 74—is 22 percent.

Washington’s numbers for percentage of boomer ownership and boomer population are nearly the same nationally—41.9 and 22.6, respectively.

Median home prices are $443,350 in Washington and $256,663 nationally.