Taking Care of Mom and Dad: Avoiding Scams

Once you've established that your parents have enough money, income and insurance to cover their basic needs through their last years, you should ask them what they expect from the money they have. If you don't -- and if they don't have specific goals -- they may be vulnerable to being swindled.

In the previous chapter, I pointed out how aggressive some nonprofit organizations can be when it comes to fundraising...and I was talking about legitimate outfits there. Crooks are even more cunning when it comes to playing on older people's confusion about money mechanics and financial obligations.

You've probably heard about telemarketers who prey on retirees cooped up in their homes, relying on appliances like television, radio or a computer for their connection to the outside world. These crooks exist...and they do like to pick on older people. However, the schemes they promote usually follow the same, basic outlines. And that means you and your parents can do well by watching out for a few common danger signs.