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Are Your Daily Finances in the Right Hands?

Are Your Daily Finances in the Right Hands?

How to know if you, or your Daily Money Manager, is doing a good job.
DMM hands supporting a list of financial tasks

There are many reasons why someone might need or be getting help with their personal finances.  I’m not talking about investments, but the day-to-day actions that keep your financial boat afloat:

  • Paying bills
  • Filing taxes
  • Managing cash availability
  • Keeping an eye out for fraud

In general, this is the person you trust to keep your finances stable & protected.

Statistics

Financial abuse affects at least 10% of older adults annually.  90% of such abuse comes from the hands of trusted individuals, family members, and friends.  The key is to plan ahead and choose the right person to manage your affairs.

Most people are able to name their children as Power of Attorney agents, and many do it in birth order, but that is not always the best option if you consider the task list below.

What your financial caregiver should be doing

Our Daily Money Managers (DMMs) spend an average of 12 hours a month, managing clients’ affairs, with a wide variance per client.  It is an arduous job for an adult child who is still working and probably handling other caregiving needs such as meals, visits, transportation, and medical appointments.  While some families readily accept this responsibility, others are not so eager.  Below is what we consider the bare minimum of financial caregiving tasks:

  • Reviewing your mail with you
  • Paying bills, if needed
  • Keeping your finances completely separate from their own
  • Organized filing of documents for future retrieval
  • Reconciling your accounts
  • Tracking all activity for tax purposes
  • Assisting or doing your tax filing (sending to CPA)
  • Sharing status and bank statements with you if you wish
  • Watching for fraudulent transactions
  • Meeting with your financial/legal team at least annually

The difference between a family member and a professional

Family Member 

Professional DMM

No cost to you; high cost to them

Costs you; doesn’t cost family

Emotionally involved

Caring, but not involved in family dynamics

May not be nearby to catch everything

Near enough to visit as needed

May not have the time necessary to dig into issues

Commits contractually to providing services

Stands to benefit from estate

Does not benefit except by contracted paycheck/invoice.

May not have the skillset to navigate all the intricacies of your affairs

Is exposed to many aspects of financial situations daily and is regularly trained to understand subjects.

You believe in their honesty

Background and credit checked

Document storage security varies

Documents are secure

Password security and organization may be haphazard

Passwords are long, random, encrypted and organized for retrieval

Is not insured

Is insured for Professional Liability, Cyber threats, and General Liability.  Employees are bonded.

 

Do you need help but have not yet asked?

Now, if you are managing your own finances, re-read this article and see if you are doing what is necessary for your own financial stability.  Also, consider a future where you are unable to manage your own affairs.  Are you prepared with an up-to-date Power of Attorney?  Have you decided who that person should be and chosen a backup?  Failure to do so could result in expensive guardianship proceedings if you become incapacitated.

If you do decide that you are ready for help, and family is not your choice or your option, we offer free virtual or in-person discovery meetings to answer all of your questions or to connect you with the right professionals.  You can find information and DMM’S in other areas across the country at AADMM.com, our industry organization.

For more information, follow Paper Tigress on Facebook or Linked In.  The links are below.

Your financial stability is our top priority.

Contact Us

Your health and peace of mind are worth every step of this journey.