Broker Check

The Role of Trusted Contacts in Money Management

October 02, 2023

In our recent podcast episode, we introduced our new co-host, Josh Levitus, who brings dynamic energy and unique insights from his journey in the financial services industry. Josh shares his path into the field, the lessons he's learned, and tidbits about his personal life. But beyond introducing our new co-host, the episode delves into a critical aspect of financial management – the role of trusted contacts.

The concept of trusted contacts is not often discussed, but it plays a crucial role in ensuring financial safety, particularly for seniors and those with mental disabilities. The Financial Industry Regulatory Authority (FINRA) has a specific rule, Rule 2165, which mandates financial advisors to ask for a trusted contact for clients over 65 or those over 18 with a mental disability. However, as we discussed in the podcast, everyone, regardless of age or mental capacity, can benefit from having a trusted contact.

But what exactly is a trusted contact? It is a person assigned to your financial account who can be contacted in situations where there is a concern about your financial safety. Importantly, a trusted contact does not have power of attorney over your account. They cannot make withdrawals or changes. They are merely a safety precaution, a person who can be reached if there are concerns about potential scams or if the client cannot be contacted.

Unfortunately, scams targeting seniors and the mentally disabled are all too common. The podcast episode highlights some of the most common scams, such as romance scams and investment scams. These scams can be incredibly damaging, leading to significant financial loss. Having a trusted contact can help prevent these scams, providing an additional layer of protection.

The podcast also dives into the real-life scenarios where trusted contacts have proved effective in protecting clients. These stories highlight the importance of having the right person as your trusted contact, someone who understands your financial situation and can act in your best interest when needed.

Lastly, the episode takes listeners into the world of Richard Oring and Josh Levitus' branch office, offering insights into the variety of services they provide. From financial advice to tax guidance, their services aim to help clients make the right financial decisions.

In conclusion, this podcast episode underscores the importance of trusted contacts in financial management. It offers a wealth of information, shedding light on a topic that is often overlooked but can make a significant difference in ensuring financial safety. As always, it emphasizes the importance of being informed, asking questions, and seeking professional advice when managing your money.

Listen to the podcast now!