Why seniors should designate someone to discreetly help protect their money
As we age, it’s normal for memory to slip a little. We forget where we left our keys, miss a doctor’s appointment, or repeat a story. Most of the time, these are harmless. But when it comes to your finances, even small mistakes or a moment of confusion can lead to costly consequences.
That’s why many financial professionals now urge retirees to add a trusted contact to their financial accounts—a person who can’t move your money, but can be alerted if something suspicious happens.
It’s a smart, low-stress way to guard against fraud, financial abuse, and forgetfulness.
What Is a Trusted Contact?
A trusted contact is someone you authorize your bank, broker, or financial advisor to notify if they see red flags—such as:
- Unusual withdrawals
- Confused behavior
- Signs of financial exploitation
- Inability to reach you over time
They cannot make decisions, access your funds, or make changes to your account. Think of them as a financial “emergency contact.”
This designation is especially important for seniors living alone or those experiencing early memory changes. It allows a second set of eyes to help catch problems early—without taking away your independence.
Real-Life Example #1: The “Grandson” Scam
Eighty-year-old Henry received a call one morning from someone claiming to be his grandson. The young man said he was in jail and needed $5,000 wired immediately. Shaken and eager to help, Henry rushed to his bank to transfer the money.
Fortunately, his account had a trusted contact on file—his daughter, Susan. The bank manager spotted the red flag, called Susan, and confirmed that the grandson was safe at college. No money was lost, and Henry later said, “I felt embarrassed—but grateful.”
Real-Life Example #2: The Forgotten Auto-Renewals
Gloria, 75, had always managed her bills carefully. But after her husband passed away, she started to forget things. One day her niece noticed that Gloria was paying three different antivirus services, monthly streaming charges she didn’t use, and a subscription to a fitness program she’d never joined.
The charges had been going on for over a year.
Because Gloria had added her niece as a trusted contact to her brokerage and checking accounts, her financial advisor felt comfortable reaching out when he noticed a high number of small, recurring charges. Together, they helped Gloria cancel the unnecessary services and clean up her finances.
Why a Trusted Contact Is a Smart Move
Here’s why it’s a simple but powerful step:
- No loss of control – You stay in charge of your money.
- Early detection – Someone can step in before small issues become disasters.
- Peace of mind – You’ll know that if something goes wrong, someone you trust is in the loop.
- Protection from scams – Red flags can be addressed quickly, minimizing harm.
Adding a trusted contact is free, private, and can be done with almost any financial institution. You can update or change the contact at any time.
How to Add a Trusted Contact
Just ask your:
- Bank or credit union
- Investment advisor or brokerage
- Insurance company
- Retirement account provider
You’ll fill out a simple form with the name, relationship, and contact information of your chosen person. It’s that easy.
Final Thoughts
As we get older, protecting our finances becomes just as important as growing them. Adding a trusted contact to your accounts is one of the easiest ways to defend yourself against fraud, confusion, and mistakes—while keeping your dignity and independence intact.
It’s not about giving up control. It’s about building a second line of defense that’s there when you need it.
This post is adapted from my book: Your Senility Portfolio: Safeguarding Your Finances When Memory Fails, available now at Amazon.com in paperback and eBook formats.
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or medical advice. Please consult a qualified professional before making any financial or healthcare decisions.