Have you named a trusted contact?

How often do you think about your future self?  As financial planners, we spend a lot of time thinking about the future.

Part of financial planning is looking ahead for potential issues and finding solutions before problems even occur.  This includes financial vulnerability that could arise from diminishing capacity, grief, illness, or other trauma.  

We have a client service feature that may be a benefit.  During your upcoming review meeting, we’ll ask you whether you would like to provide the name and information of a trusted contact.¹  This person is someone we can contact if we suspect an investor, is making an “unusual financial decision” or appears to be suffering a notable cognitive decline.⁴

Why is setting up a trusted contact so important?  While no one wants to think ill of someone they know and love, the reality is that seniors have lost an average of $50,200 each time a “known person” commits elder fraud exploitation.  And according to the IRS, seniors are more likely to be victims of financial scams than any other age group.^2,3

Why now?  Regulators now require that investment firms make reasonable efforts to ask the name and contact information of a person you trust.  You don’t have to choose a trusted contact, but it may offer some advantages. We ask this question with your best interest in mind — and to lower the risk of someone attempting to make financial decisions on your behalf.¹ 

What can a trusted contact do?

• Discuss the status of your mental or physical health.
• Discuss behaviors or possible red flags that might indicate you’re being financially exploited.

What can’t a trusted contact do?

• Has no authority over your money.
• Can’t make decisions on your behalf.
• Can’t access your account balance, account activity, or other account information.
• Can’t change your account information, contact details, or other account elections.  (This includes nominating, updating, or removing other trusted contacts.)

Who should your trusted contact be?  At first thought, the answer seems obvious: the person who you trust the most.  Yes, that person may be one of the best choices — but keep some factors in mind.

Ideally, your trusted contact is financially savvy, or at the very least, has some basic financial knowledge.  You may trust your spouse, your sibling, or one of your children more than you trust anyone else, but how much does that person know about investing and financial matters?

You should feel confident that your trusted contact will behave ethically and respect your privacy.  This person may be given confidential information about your investments.

It’s also a good idea that your family members know who your designated trusted contact is.  That way, any family member who might be tempted to take advantage of you knows another family member is looking out with your best interest in mind.  

Your trusted contact is your ally.  Think of your trusted contact like a safety net.  If you’re being exploited financially or could be at risk of such exploitation, that person will be notified and called to action.

Still feeling unsure on who to pick?  Please give us a call if you’d like guidance during this process.  We’re here to help you choose the best person for you.  
 

Sincerely,

Your Eagle Wealth Team

This Friday is our Shred Day event!  Join us for a cup of coffee and a donut while you shred your private documents.  We hope to see you there!
 

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The Week on Wall Street

Stocks managed small gains as investors wrestled with concerns over economic growth prospects and a rise in COVID-19 infections.

The Dow Jones Industrial Average picked up 0.24%, while the Standard & Poor’s 500 gained 0.40%. The Nasdaq Composite index added 0.43%. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.78%.^1,2,3
 

A Choppy Week

In a truncated week of trading, stock market action was turbulent and indecisive. A mixed start saw cyclical stocks sell off amid concerns of slowing economic growth, while growth stocks advanced in response to falling yields.

After strengthening mid-week with the release of the FOMC meeting minutes, stocks skidded when reopening fears resurfaced Thursday on a new wave of global COVID-19 infections and Japan’s emergency declaration that reintroduced lockdown protocols. This led to a broad-based sell-off, with financials, home builders, and technology hit hard. A drop in bond yields added to the deteriorating sentiment.

Bond yields rebounded on Friday, setting the stage for a strong comeback for stocks, with the three major indices closing at new all-time highs.⁴
 

Attention Turns to Bonds

Since reaching a 2021 high of 1.74% in March, the 10-year Treasury yield has been in a slow, steady decline, closing at 1.37% on Friday.⁵

One explanation may be that reopening sentiment has turned more cautious as the Delta variant of COVID-19 spreads globally. Another view is that overseas investors are buying Treasuries, effectively lowering yields.

Perhaps it's abating inflation concerns, or simply excess liquidity finding its way into bonds. Whatever the message, the yield narrative has changed from just a few months ago when it was believed that the 10-year treasury was heading to two percent.⁵