Read Your Financial Statements

Whether they come by snail mail, online, email or some other way, all those monthly statements that come from the bank, a financial advisor, the brokerage company or the insurance company need to be read. For most of us, reading these statements isn't up there on the list of fun things to do. But, if they aren't read, there are repercussions.

Paul always handled the finances. Judy liked it this way and never gave it much thought. Although some of the early signs of Alzheimer's may have been there, Paul hid them well. The first inkling that Judy had that something may be wrong was when their CPA mentioned the high fees being charged by their financial advisor. But, at that point Judy was so overwhelmed by the diagnosis of Paul's Alzheimer's and all the problems that faced her, the mounting pile of statements was not a priority. Many months later her daughter offered to help her sort out the papers and started to really look at what was there. They were devastated to find that the advisor had shifted her into totally age inappropriate investments and was investing on margin. The margin interest alone was costing her $1000 each month.

Whether it is knowing how money is being invested, what type of return is being earned, or the deductible on an insurance policy, paying attention is key. It doesn't mean you have to become a student of personal finance. It does mean realizing if you (or an elderly parent) can no longer be the steward of these things and finding someone to help. It may be a son or daughter, it may be the family attorney, or it may be a daily money manager. It also means not being shy about asking questions if there is something on the statement you don't understand. You know that old saying that the only dumb question is the one that you don't ask.

The important thing is to not ignore the statements. They won't go away and being aware of what's happening is critical to your financial security.