In several recent columns, I’ve advised seniors to look within the ranks of their own family for people to help manage their money in the event they can’t do it themselves.
But what if you find your family tree has a bunch of untrustworthy, greedy, incompetent or trifling adults barely managing their own lives and money?
You can always hire an accountant, financial adviser or lawyer. But they don’t come cheap.
However, there is a growing and reasonably priced industry of financial caregivers who specialize in helping seniors manage their day-to-day personal finances.
If you need this kind of help, there are two organizations you should contact, the National Association of Professional Geriatric Care Managers and American Association of Daily Money Managers. (To find someone in your local area affiliated with Geriatric Cae Managers, go to www.caremanager.org or call 520-881-8008. Daily Money Managers can be reached at 301-593-5462 or on the Web at www.aadmm.com.)
Professional Geriatric Care is a nonprofit organization that provides referrals to licensed professionals, primarily social workers and nurses, who work with families in need of assistance with caregiving. About 20 percent of geriatric care managers also provide daily money management services, according to Linda Fodrini-Johnson, a certified geriatric care manager and board member.
“Being able to manage their finances is a growing issue with seniors,” said Fodrini-Johnson, owner and executive director of Elder Care Services in Walnut Creek, Calif.
If you hire a geriatric care manager, expect to pay anywhere from $40 to $100 an hour, Fodrini-Johnson said.
Also for an hourly fee, daily money managers affiliated with Daily Money Managers will help you organize and keep track of your financial and medical paperwork, or make calls to your creditors. On average, the cost is between $25 and $60 an hour.
“I think it’s a good alternative for people whose only alternative is to hire an accountant or attorney,” said Liz Crystal, a Daily Money Managers member based in Green Brook, N.J.
For her personal finance services, Crystal charges $50 a visit and can do everything from helping people pay bills to explaining to seniors what’s in their investment portfolio.
Lee Keene, also a Daily Money Managers member and money manager out of Charlotte, N.C., said he got into the business after a caregiver stole $40,000 from his elderly parents.
Keene said he works with Alzheimer’s patients, bedridden individuals and seniors who have trouble seeing or writing. He charges $25 an hour, with a two-hour minimum. He usually visits clients twice a month. Most of the time, the total charge for paying bills, balancing a client’s checkbook and going over credit card statements comes to $100 a month.
Daily Money Managers and Professional Geriatric Care point out that the profession of daily money management is not regulated by any state or federal organization. So don’t hire anyone without doing some homework and asking lots of questions.
In fact, the money managers I spoke with offered these suggestions before hiring someone to handle your daily finances:
* Look for someone with credentials, and then verify whether the credentials are for real. Ask if they belong to an association that has a code of ethics. Both Daily Money Managers and Professional Geriatric Care do.
* Ask for references from clients and at least one professional.
* A daily money manager should not be giving out legal, accounting, investment or tax advice unless he or she is licensed to do so.
* Closely monitor their activities. It might be easy to just turn over all things financial to this type of professional. But don’t. Double-check all the work they are doing for you. And definitely give the money manager the boot if he or she won’t show you your own financial records.
* If you are going to allow someone to sign checks for you, be sure the person is bonded or has liability insurance. And be sure to find out the amount of liability coverage or size of the bond, Fodrini-Johnson said.
* Be clear about the fees. Rates will vary depending on where you live. Some daily money managers may charge for their travel time and for out-of-pocket expenses such as postage stamps used to mail your bills or charges for long distance calls made on your behalf.
If you don’t have anyone else to help, the cost of a daily money manager seems reasonable to me.
Washington Post Writers Group
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
