Savings Experiment: Snow Removal
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This is a true story sent to me by a reader of my books. His family gave me permission to publish this sad tale, but requested I protect their anonymity.
Bill Hacknett (not his real name) had planned well for retirement. He was a senior executive with a major, publicly traded company. He had spent his entire working career in corporate America. When his company downsized, it was not a problem for him. Over his 30-year employment history, he had accumulated significant assets in his 401(k) plan and, in his late fifties, was ready for early retirement.
Then disaster struck.
Over a short, three-month period, he lost his entire retirement nest egg to a series of Nigerian Internet scams. You know the pitch. Either you have won the lottery or, based on an incredibly convoluted saga, some stranger left millions unclaimed in an African nation and your help is needed to extricate the funds and share in the proceeds.
Why would someone as intelligent as Bill fall for such obvious scams? He wasn't stupid or greedy.
Bill had an undiagnosed case of frontotemporal dementia.
This disease affects patients at an early age, so loved ones may not be on the alert for it. The changes in personality are subtle at first. The disease spreads slowly to other areas of the brain. It's not uncommon for those with this illness to be victimized because their judgment is impaired.
Bill is now in a nursing home. To qualify for Medicaid, since his funds are exhausted, Bill is divorcing his devoted wife of 30 years. His doctors give him less than a year to live.
Frontotemporal dementia is relatively rare. It is more common in families with a history of some form of dementia.
If a family member exhibits behavioral changes like inappropriate actions, euphoria, lack of judgment and inhibition, apathy, repetitive compulsive behavior, a decline in personal hygiene or lack of awareness of thinking or behavioral changes, you should promptly consult with a neurologist.
While that advice is fairly standard, Bill's case warrants an additional safeguard: Consider requiring the signature of at least two persons on all financial transactions over a set amount. Bill's wife never would have signed off on the transfer of his assets in response to the Nigerian scams.
Treatment options for sufferers of frontotemporal dementia are somewhat limited and the prognosis is generally poor. However, it is possible to secure your assets and avoid compounding the tragic effects of this cruel disease.
Dan Solin is a senior vice president of Index Funds Advisors (ifa.com) and the author of The Smartest Investment Book You'll Ever Read, The Smartest 401(k) Book You'll Ever Read, and The Smartest Retirement Book You'll Ever Read. See smartestinvestmentbook.com.
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Reader Comments (Page 1 of 1)
2-21-2010 @ 7:00PM
Joseph said...
I recentley fought off and exposed a scammer who said I had won millions in a lottery in Thailland using HbcBank in Bankoc...wanted $450 wired by Western Union for letting me know.Called Hsbc bank locally and they had never heard anything. he disappeard.The Indians from India are scamming google for outsourcing too them.
Thanks.
Joseph
Jmo821207@Aol.com
2-22-2010 @ 11:42AM
Shanna said...
What a terribly tragic story. My great-grandmother suffered with Alzheimer's for over 10 years, and we watched her degenerate to the point of being bed-ridden, mute, and locked in a fetal position. The ravages to a family of dementia-related illnesses can be overwhelming. We never put her in a nursing home, but kept her home and took care of her with the aid of daily nurses, who stopped by 2-3x's a day, so we sat front row as she deteriorated and became a shell of her former self.
I cannot even imagine what would have happened had she had Internet access (we realized she wasn't thinking right and was acting strangely when my great-grandfather died in 1988), because her behavior was always alarming and erratic (burning all of her important papers and documents, including birth certificates, her marriage license, driver's license, etc, "painting" furniture in the house with shoe polish, feeding her cat cereal and Coke rather than food and water). It would be extremely easy for someone not in their right mind to be taken in by these scams, and they come through your inbox on a daily basis.
Thank you for writing about this family and their misfortune; perhaps it will save others from having the same thing happen to them.
2-22-2010 @ 1:04PM
david.osedach said...
It amazes me how many people continue to fall for these outlandish scams. I have yet to come across one with perfect grammar.
2-23-2010 @ 6:27PM
Lindsey said...
David- I think that the point of this story is that at least some, and perhaps many, of the people who respond to these email scams do so under highly abnormal circumstances. Of course to most people it would seem incredible that anyone would be fooled by such an obviously false (and yes, grammatically incorrect) email. That's not really the point though. These scams don't have to fool a large number of people in order to be successful. They prey on the sick and naive. It is often the elderly who are less familiar with technology who wind up suffering. In other cases, such as this one, it is the mentally ill. You, as a presumably healthy adult who is familiar with technology, are not the intended target.
2-24-2010 @ 10:01AM
Sharon Denny said...
Thank you for sharing this story with your readers. As Program Director at the Association for Frontotemporal Dementias (AFTD), I hear experiences like this far too often. The onset of symptoms of frontotemporal dementia is gradual and most often begins in a person's 50's and 60's, catching families off guard. Impaired judgement, a decreased ability to assess the impact of decisions and to stop behaviors once started are symtpoms of the disease and contribute to significant potential for financial risk.
Pursuing a medical evaluation is critical as soon as behaviors indicate a change from prior functioning. Should a progressive disorder such as FTD be identified, early planning and protection of assets is essential to prevent financial disaster.
AFTD is a non-profit organization whose sole mission is to advocate for people who live and work with the frontotemporal dementias. Readers will find more information and resources for people confronting FTD at www.ftd-picks.org.