THE FISCAL BLUE PRINT

WITH COACH JEFF MONTGOMERY

Episode 20: Q&A- Common Scams Affecting People Today; Expected Rates of Return & More!

Here are just a handful of the things that you’ll learn:

Welcome to episode #20 of the fiscal blueprint. Today we are going to continue our Q&A session with two questions that on the surface don’t appear to be related but actually are… because of the human brain!

The 1st question has to do with Scams on seniors, the second has to do with expected market returns.

But first…

Disclaimer: Please do not take advice from me on this show. As a licensed Fiduciary I am only allowed to give advice to clients. Unless you’re a client I can’t give you advice because I don’t know you. Think of this as helpful hints and education only! And please, before implementing any information or ideas you hear on this show always consult your legal adviser, your tax adviser, and your financial adviser.

(1:50) Practical Planning Segment: Our first question came from a client during an annual review I recently conducted, and I thought it was a great topic to cover and we may do an entire 4-part series on this question.

The question was I received a phone call from the SS administration recently which stated that my social security was being suspended and that I faced legal action if I failed to call the phone number provided?

From the NCOA which stands for the National Council of Aging……this is the number one scam of 2019: Beware of Social Security spoofing calls

There’s been a significant uptick in fraudulent telephone calls from people claiming to represent the Social Security Administration (SSA). In them, unknown callers threaten victims that they face arrest or other legal action if they fail to call a provided phone number or press the number indicated in the message to address the issue. Sometimes the scammers switch tactics and say that they want to help an individual activate a suspended Social Security number. They may even “spoof” the actual Social Security hotline number to appear on the recipient’s phone: 1-800-772-1213.

If you receive one of these calls, hang up. Know that Social Security rarely contacts persons by phone unless you have ongoing business with them that you initiated, and they never make threats about arrest or legal action.

Report suspicious calls to the SSA Office of the Inspector General by calling 1-800-269-0271 or submitting a report on the OIG website!

(7:00) More Scams to be aware of:

Watch for a new twist on the old grandparent scam: The grandparent scam has been around for several years. In this approach, a person calls an older adult pretending to be a grandchild who’s been involved in an accident or legal trouble and needs money immediately.

Recently, the Federal Trade Commission (FTC) found that instead of using wire transfer or gift cards, an increasing number of older adults are mailing cash to these fraudsters, with a median individual loss of $9,000. According to reports, the scammers often ask seniors to divide the bills into envelopes and place them between the pages of a magazine, then send them using various carriers, including UPS, FedEx, and the U.S. Postal Service.

The FTC warns that if you or a loved one receives one of these calls, don’t act right away. Call that grandchild back on a correct phone number and verify their whereabouts. If you’ve mailed cash, report it right away to the Postal Service or shipping company you used. Some people have been able to stop delivery by acting quickly and giving a tracking number. Be sure to also file a complaint to the FTC at FTC.gov/complaint.

(10:00) Medicare/health insurance scams: Every U.S. citizen or permanent resident over age 65 qualifies for Medicare, so there is rarely any need for a scam artist to research what private health insurance company older people have in order to scam them out of some money.

In these types of scams, perpetrators may pose as a Medicare representative to get older people to give them their personal information, or they will provide bogus services for elderly people at makeshift mobile clinics, then use the personal information they provide to bill Medicare and pocket the money.

(11:20) The Bottom Line: Never respond with personal information without confirming that it is a reputable source. When in doubt, just don’t do it. Remember, Social Security Admin, Medicare, IRS, etc. are never going to personally call you and request personal info or threaten you with legal action.

Also, there are tons of spam/phishing emails out there that may look like they are from a reputable company. You might even have an account with a particular custodian, and they’ll actually have the logo of the custodian. Never click on an attachment within these emails.

Remember, custodians that we deal with will never send you your monthly statements via email in an attachment. They will however, send you an email saying your statement is available to be viewed online, and direct you to login to the actual website.

(13:40) Question #2: WHY ISNT MY PORTFOLIO ACHIEVING THE EXPECTED RATE OF RETURN ITS SUPPOSED TO?

 

How can your expectations lead you down a path of some potentially destructive behavior?

Expected rate of return is another way of saying the historic average of those portfolio asset classes. Now, we all know that past performance is not an indication of future results.

 

Check out this article called the “Uncommon Average” to help answer this question: https://us.dimensional.com/perspectives/the-uncommon-average

 

Let’s look at calendar year returns for the S&P 500 Index since 1926. S&P 500 Index had a return within the historical average of 10%, plus or minus 2 percentage points, in only six of the past 93 calendar years. In most years, the index’s return was outside of the range—often above or below by a wide margin—with no obvious pattern. For investors, the data highlight the importance of looking beyond average returns and being aware of the range of potential outcomes.

 

Despite the year-to-year volatility, investors can potentially increase their chances of having a positive outcome by maintaining a long-term focus. If you look at the historical frequency of positive returns over rolling periods of one, five, and 10 years in the US market. The data show that, while positive performance is never assured, investors’ odds improve over longer time horizons.

 

While some investors might find it easy to stay the course in years with above average returns, periods of disappointing results may test an investor’s faith in equity markets. Being aware of the range of potential outcomes can help investors remain disciplined, which in the long term can increase the odds of a successful investment experience. What can help investors endure the ups and downs? While there is no silver bullet, understanding how markets work and trusting market prices are good starting points. An asset allocation that aligns with personal risk tolerances and investment goals is also valuable. By thoughtfully considering these and other issues, investors may be better prepared to stay focused on their long-term goals during different market environments.

So as a final word……………… keep those questions coming in; 3 ways to get questions to us:

#1 Record a question directly from our podcast page. You’ll see an orange button that says start recording. Click that button and you can record your voice and send in a question. Make sure you give us permission to play your question on the next podcast.

#2 Send us an email directly to info@mfswealth.com

#3 give us a call to 855-97-coach ….which is 855-972-6224

Final Disclaimer:

We appreciate you joining us today for this episode of The Fiscal Blueprint.

Be sure to visit fiscalblueprint.com to access the most recent content available including all past shows.

Remember it’s not about the money but about your life!

Having a mindset and living a life of abundance rather than scarcity will change the direction of your life forever!! Enjoy the Journey!!!

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