Humphrey continues to talk about senior citizens, their finances BY SUE WEBBER CONTRIBUTING WRITER Fresh off an 18-month stint as assistant director of the Consumer Financial Protection Bureau (CFPB) in Washington, D.C., Hubert H. (Skip) Humphrey still is caught up in the well-being of older Americans. A resident of Golden Valley, Humphrey formerly was a state senator from 1973-83, Minnesota’s Attorney General from 1983-99, and a candidate for governor of Minnesota in 1998. A senior fellow at the University of Minnesota, Humphrey was president of the Minnesota chapter of AARP and is a member of the board of the national AARP. He is the son of the late Hubert H. Humphrey, who was mayor of Minneapolis (1945-48), U.S. senator from Minnesota (1949-64) and U.S. vice president (196569). Now serving as senior liaison officer for CFPB and an ally for the Elder Justice Coalition, Skip Humphrey continues to travel and meet with consumers, policy makers, and public and private agencies to talk about senior citizens and their finances. His work has left him with several firm convictions regarding the welfare of senior citizens. “To protect yourself against fraud and scams, you need to know that if something seems too good to be true, it probably is,” Humphrey said. He suggests that if senior citizens have questions, they should think seriously about consulting the state Attorney General’s Office. “People who have worked their whole lives should have their homes, their pensions and their Social Security,” he said. “That should not be stolen from then because they are generous or unwilling to ask hard questions.” When it comes to financial planning, Humphrey suggests that senior citizens
work with a good financial planner and ask the hard questions, such as how the planner is paid. “You should understand that when you’re asking someone to help you with your finances, you need to make sure that person understands the responsibility they are taking on,” Humphrey said. “A caregiver, close friend or family member needs to understand they are taking on a fiduciary responsibility. It’s not their money; it’s your money.” Quite frequently, he said, a relative decides to help mom or an aunt by taking them shopping and getting them to medical appointments. “And then they begin to rationalize that since mom said they’d eventually have her money, it’s OK to begin using it now,” he said. “It’s not OK to do that. Other times, it becomes purposeful fraud. It’s one of the problems seniors have visited on them by friends and family members. If people are hired to help you sustain yourself, find out what they’re doing and why they’re doing it. Watch out for fraudsters.” He notes that some seniors have diminished capacity for handling complex financial transactions. “The financial marketplace is much more complex and diverse than it once was,” He said. “It’s really challenging for some people ages 50 to 90. The CFPB website has a page where older Americans can tell their stories and report their problems, Humphrey said. “People become embarrassed that they were ripped off, but if they do talk about it, it gives courage to so many others,” he said. Reporting problems online also helps CFPB, he said, and it becomes a place to ask questions and get good answers. “The bureau is learning from the questions seniors ask and from their research,” Humphrey said. Now that he’s back in Minnesota,
Hubert H. (Skip) Humphrey Humphrey said he’s looking forward to working with organizations here on ways to maintain energy and levels of involvement as people age. “People are living longer now,” he said. “When so many men were still smoking, their life expectancy was between 67 and 71 years. Now that so many aren’t smoking and are eating better and exercising, they have a whole second life ahead of them. They need to find ways of dealing with that.” Many seniors continue to work because they need the extra income, but also for the social and business engage-
ment, Humphrey said. “If our generation gets it right, we will set an example for the next generation who will live well into their 90s,” he said. “It’s a real challenge to our country and to the world that people are living longer and we must find ways to ensure that they live a good and robust life of 20 or 30 more years once they reach the age of 65. We need to continue working on how to age well and how to share that with the generations coming up.” Information: consumerfinance.gov, or aarp.org
Page 2 Mature Lifestyles • Thursday, February 20, 2014
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Mature Lifestyles • Thursday, February 20, 2014 Page 3
A lifetime of careful spending, saving reaps rewards
Jan and Ken Mrugala of Plymouth last year took a threeweek dream trip to Australia and New Zealand. They saved money for the trip and carefully researched available trip deals and advertised specials before they made reservations. (Submitted photo) BY SUE WEBBER • CONTRIBUTING WRITER The appearance of an AARP card in your mailbox may have come as a startling reminder that the official senior citizen designation is rapidly approaching. But there is an upside. Many senior discounts and deals for restaurants, theaters, hotels and car rentals begin to show up at age 50, as well. Ken and Jan Mrugala of Plymouth made good use of deals and discounts long before they officially became senior citizens, however. “So many people are maxed out on credit cards,” Ken said. “Why pay 30 percent interest?” The two, married for 46 years, grew up in northeast Minneapolis and were raised with frugal values. “Ken saw how hard his parents worked,” Jan said. “He talks about working on a truck farm in northeast Minneapolis. The kids were taken to Brooklyn Center or Brooklyn Park to bunch radishes and onions.” If a teenager got a part-time job when the Mrugalas were growing up, it was expected that he or she would save some, spend some and give some to the church, Jan said. “That’s how we were raised,” she said. The Mrugalas brought the same frugality to their own home in New Hope, where they raised a son and daughter. “If we wanted something, we waited until we saved for it and then we got it,” Ken said. Now residents of Plymouth, the Mrugalas have three grandchildren.
“We pretty much always lived within a budget,” Jan said. “It was the only way to operate efficiently. You have to stretch what you’ve got as far as it will go.” She sewed clothes for the children and herself. Ken, a woodworker, shops the odds and ends bins at a northeast lumberyard and Menards and saves scraps of wood. He recently finished making pull-out drawers for the pantry in his son’s home. “He cuts corners wherever he can,” Jan said. “He doesn’t throw many things away because they can always be reused somehow in his workroom.” The couple has always been masters of couponing for groceries and using dining cards for dinners out. They choose to frequent places that offer coupons. “We mostly get gas on Tuesdays at Super America because they double competitors coupons,” Jan said. “We go to Redbox for movies all the time. You can shop online from home and reserve what you want and then find out the closest location where it’s available.” They seldom pay full price for anything. “With all the places that have sales, if you’re patient you can wait until something goes on sale,” Jan said. “We look for sales and specials. If there’s an option to delay a little longer until it goes on sale, we tend to do that. That may be a philosophy from the dark ages, but it tends to work for us.” Ken had a 30-year career with the city of Minneapolis, and Jan worked as a legal secretary at a Minneapolis law firm for 28 years. “We found our niches at a time when employees stuck with their job,” she said.
Both were able to retire before they were 60. With the help of a financial planner they began working with several decades ago, Jan said, “We’ve been able to put money in the bank for what we wanted to do. We told her we were looking to be comfortable enough to pay our bills and to splurge occasionally. Under her tutelage, now we’re able to have funds set aside so we can travel.” The planner suggested that the Mrugalas start small by saving even just $25 a month that could be deducted from their paychecks and hardly noticed, Jan said. “Everyone was on a tight budget then,” she said. “We just started tucking money away a little at a time.” The couple took vacations to Mexico for years, and last year took a dream three-week trip to Australia and New Zealand, all paid for up front. But those trips didn’t come before they had carefully researched trip deals and frequent flyer mile offerings, and watched the newspapers and websites for advertised specials. AARP, formerly the American Association of Retired Persons, is open to people 50 and older. Memberships, at $16 a year, offer a variety of information, advocacy and services, including up to 25 percent off on selected car rentals, up to 50 percent off on selected hotel rooms, and a variety of discounts in other categories. Information: www.aarp.org, seniordiscounts.com, retailmenot.com/seniordiscount, or free4seniors.com/ senior-coupons
Page 4 Mature Lifestyles • Thursday, February 20, 2014
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Seniors need computers for job searches, paying bills BY SUE WEBBER • CONTRIBUTING WRITER When it comes to mastering the use of a computer, senior citizens often are upstaged by grandchildren who already are proficient with technology, some by the time they are in elementary school. But seniors often need computers for more than sending and receiving email and looking at grandchildren’s photos online. Computers can assist seniors to download coupons, rent movies, book airline tickets or motel reservations, order groceries and renew prescriptions. Some use computers in their jobs, or perhaps even in a search for a new job. Others want to pay bills online or monitor their investments. And after the recent massive Target credit card breach, it’s imperative for consumers to be able to check their bank statements online. Where can senior citizens get help in becoming more computer savvy? Linda Bankston, coordinator of computer classes for the St. Anthony-New Brighton Schools, said the district offers several classes tailored especially for seniors. “A lot of people who are 50 and over are out of work,” Bankston said. “But some people are not comfortable with regular classes. We have some people way into their 80s who are taking computer classes.” The basic computer classes for seniors are split into two parts, she said. The first part allows seniors to get acclimated to computers, while the second offers help with accessing email and the Internet. Participants are given a manual to take home that was developed by the instructors. Jill Smith, adult services manager for Anoka County Libraries, said several library branches offer one-onone computer instruction for beginners. Introduction to Internet is offered from 11 a.m. to noon on Wednes-
days at the Rum River Library in Anoka, and 9-10 a.m. Saturdays at the Mississippi Library branch in Fridley. Open computer time is available 1-4 p.m. Mondays and Fridays at the Rum River Library, and people can get individual instruction then, Smith said. Barb Kondrick, adult services librarian at the Columbia Heights Library, said three sessions of Senior Surf classes will be offered in April, May and June. The
two-hour class is provided through the Metro Area Agency on Aging. “It’s specifically designed for seniors,” Kondrick said. “No experience is needed.” The library has five computers that are open to patrons at any time, she said. “With a library card, anyone can log onto the computer and we can get them going.
We do a lot with people of all ages.” According to Generations Online, a nonprofit program for Internet literacy and access for the elderly, an estimated 21 million people over 65 do not use the Internet. And yet, it also reports that the fastest growth in use of social network sites has come from users 74 and older. That usage for seniors has quadrupled since 2008, from 4 percent to 16 percent, according to Generations Online. SeniorNet.com is another place where senior citizens can gain computer knowledge. Since 1986, the nonprofit organization has offered computer and Internet education for older adults. The mission of the nonprofit SeniorNet Learning Center at 1403 Harmon Place, Minneapolis, is to provide lowcost, basic personal computer education for people over 50. SeniorNet volunteers’ single goal is to teach seniors how to use a computer. Classes are ofPhoto illustration fered three terms each year, winter, spring and fall. Most classes are two hours, one day a week for a four-week session. There are two class periods each day, morning and afternoon, Monday through Friday. Information: 612659-6500. Another computer resource for senior citizens is East Side Neighborhood Services, at 1700 2nd St. NE, Minneapolis. Instruction is provided by peer coaches who are trained to teach older adults. The service is sponsored by Senior Service America, Inc. and is free to all participants. Classes are offered at 10 a.m. Monday through Friday. Information: 612-787-4020. Seniors also may contact Volunteers of America Monroe Day Elders, at 1900 Central Ave. NE, Suite 102. Information: 612-767-3322.
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Mature Lifestyles • Thursday, February 20, 2014 Page 5
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Page 6 Mature Lifestyles • Thursday, February 20, 2014
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Fraudulent scams, identity theft rob senior citizens of savings
BY SUE WEBBER • CONTRIBUTING WRITER “I’m writing this with tears in my eyes. I came down to London, United Kingdom for a short vacation. Unfortunately, I was mugged at the park of the hotel where I stayed, all cash and credit cards were stolen off me but luckily for me I still have my passport with me. “I’ve been to the Police here but they’re not helping issues at all and my return flight leaves in few hours from now but I’m having problems settling the hotel bills and the hotel manager won’t let me leave until I settle the bills. Well I really need your financial assistance. “Please let me know if you can help me out? I’m freaked out at the moment!!” If you or someone you know has received that kind of email, you’ve been introduced to the world of online scams. Such scam letters are often allegedly signed by a good friend or grandchild, and are sent to a list of unsuspecting victims after an acquaintance’s or relative’s
email account has been hacked into. Minnesotans lose millions of dollars to fraudulent email, telephone, mailbox and door-to-door scams each year, and many of the victims are senior citizens. Accordingly, many area police departments or community education offices are doing what they can to warn seniors about the many faces of fraud. The scams and frauds can be as innocent sounding as an alleged contractor who wants to tar the driveway, a cross-border lottery sweepstakes, advance-fee loans or travel offers. Last year, the Richfield Police Department produced a promotional video about scams, with an emphasis on the elderly. It was a joint collaboration of the department’s investigators and was posted to the department’s Facebook page last summer. The video cautions seniors on four points: • If it seems too good to be true, it probably is. • Don’t reveal personal information to people you
don’t know. • Don’t send money to people you don’t know. • If you sense a potential fraud, call the police. The video quotes a female victim who was told she was an international lottery winner, but needed to send money in order to guarantee the receipt of her prize within five weeks. She sent the money, but her prize never arrived. Richfield Police Lt. Mike Flaherty said the department’s Safety and Fraud Prevention presentations are sometimes advertised through the Parks and Recreation Older Adults Program. “More commonly, representatives from the senior condos/apartments request yearly presentations for their residents,” Flaherty said. Jill Mecklenburg, the Richfield Police Department’s crime prevention specialist, partners with Richfield Fire SCAMS - TO NEXT PAGE
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Scams FROM PREVIOUS PLACE Chief Wayne Kewitsch or Assistant Fire Chief Mike Dobesh to present â&#x20AC;&#x153;Personal Safety at Home and Out.â&#x20AC;? The presentation covers fire safety, fall prevention, personal safety and fraud prevention tips. Mecklenburg also gives fraud prevention and other presentations to church groups and Richfieldâ&#x20AC;&#x2122;s Neighborhood Crime Watch participants, Flaherty said. One of the recent frauds Flaherty has observed involves Green-Dot visa cards. â&#x20AC;&#x153;These are reloadable cards (similar to gift cards) that you can purchase at Walgreens or other stores,â&#x20AC;? Flaherty said. â&#x20AC;&#x153;The scam artist will tell you to get $200 on the card to pay for (fill in the blank). Once the victim calls them back and tells them that they have the card, the scam artist will request the card number. Once the victim gives the scam artist the card number over the phone, the money on that card can be transferred to the scam artistâ&#x20AC;&#x2122;s account before the victim even hangs up the phone.â&#x20AC;? According to The Wall Street Journal, â&#x20AC;&#x153;The fleecing of older Americans is be-
Mature Lifestyles â&#x20AC;˘ Thursday, February 20, 2014 Page 7
coming an epidemic.â&#x20AC;? The newspaper said people 60 years and older made up 26 percent of all fraud complaints tracked by the Federal Trade Commission in 2012, the highest of any age group. In 2008, the level was just 10 percent, the lowest of any adult age group. In addition, the newspaper said one in every five Americans age 65 or older has been abused financially. Only 10 percent
personâ&#x20AC;&#x2122;s identity. To minimize the possibility of identity theft, the following should be kept in a private and safe place: credit cards, debit cards, personal identification numbers and other passwords; checks, Social Security cards, other cards or documents which bear your Social Security number; health insurance cards, driverâ&#x20AC;&#x2122;s licenses and numbers and other personal information.
According to The Wall Street Journal, â&#x20AC;&#x153;The fleecing of older Americans is becoming an epidemic.â&#x20AC;? of such frauds are reported, according to the account. Identity theft, which affects millions of consumers every year, is among the fastest growing crimes. It occurs when someone uses a personâ&#x20AC;&#x2122;s financial or personal information without permission and takes control of their existing accounts, opens new accounts or commits crimes, such as fraud, using that
Donâ&#x20AC;&#x2122;t give personal information to anyone â&#x20AC;&#x201C; either in person, over the phone or on the Internet â&#x20AC;&#x201C; unless you are sure you can trust him or her. Experts urge consumers to keep close tabs on the balances of any financial account that is accessible by a plastic payment card. They also suggest that consumers do not trust text messages, emails or direct
telephone calls from persons who are unknown to you, especially if they identify themselves as an employee of your bank or credit union. You can ask to be removed from national direct mail lists by writing to the DMA Mail Preference Service, P.O. Box 643, Carmel, NY 10512, or going online to www.the-dma.org/consumers/offmailinglist.html Consumers also may register with the National Do Not Call Registry by calling 1-888-382-1222, or going online at www.donotcall.gov For more information about scams or fraud, contact MNscams.org; the Better Business Bureau of Minnesota at 800-646-6522, or ask@thefirstbbb.org; AARP at 1-888-our-AARP or member@aarp.org; or the Minnesota Board on Aging, 800-333-2433 or www.minnesotahelp.info. To report scams, contact the Minnesota Fraud Enforcement Partnership (MFEP) at 866-347-0911, or go to www. mnscams.org You can also report a scam at the Federal Trade Commission at 877-382-4357 or www.ftccomplaintassistant.gov, or the Federal Bureau of Investigationâ&#x20AC;&#x2122;s Internet Crime Complaint Center at www. lc3.gov.
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