For What It's Worth http://fcnb.ca/For-What-Its-Worth.html hourly 1 1970-01-01T00:00+00:00 Informed Investor Advisory: Robo-Advisers http://fcnb.ca/pc_url_38981629 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><img width="250" align="left" src='//0104.nccdn.net/1_5/06f/3e6/232/Robo-Advisors.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="18007148"><font style="" class="heading1">Are you an informed investor?</font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b><br></b></font></div><div class="plain"><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://www.nasaa.org/47577/informed-investor-advisory-robo-advisers/" class="customtext2">Robo-Advisers</a></font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Investors are increasingly turning to robo-advisers to help them manage their portfolios. Easy-to-use smartphone apps and online portals make setting up an account with a robo-adviser convenient and quick, which is contributing to their increasing popularity. For those considering a robo-adviser, it is best to take it slow and ensure this type of service meets your short- and long-term investing needs. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">What are Robo-Advisers?</font></div><div class="plain"><b><br></b><font style="" class="plainlarge">The term “robo-adviser” refers to electronic platforms that provide automated investment advisory services to customers pursuant to computer algorithms developed by the platform sponsors.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Robo-advisers thus in effect replace the roles of financial services professionals with computer algorithms. In so doing, robo-advisers may be able to offer useful services at comparatively low cost.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Robo-advisers may be discretionary or non-discretionary – i.e., a customer may allow the platform to execute trades automatically on the customer’s behalf or may withhold trading authority and use the platform’s advice as a mere recommendation for the customer’s own investment decisions.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">How do Robo-Advisers Work?</font></div><div class="plain"><b><br></b><font style="" class="plainlarge">There are two general robo-advisory models: pure and hybrid robo-advisers. The pure model is entirely automated and offers little (or no) ability for customers to receive personalized investment advice from a financial services professional.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">In a pure robo-adviser, customers interact solely with the electronic platform. The hybrid model adds a level of human interaction to the robo-advisory platform, allowing customers to work with a financial services professional online or in person. Hybrid robo-advisers generally have higher fees than pure robo-advisers, but may provide greater portfolio customization, tailoring of advisory services, or personal comfort for their customers.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">In the United States, robo-advisers can offer pure or hybrid services. In Canada, all robo-advisers operate under the hybrid model. In both models, the level of service provided, and portfolio-building methodology can vary widely. Always make sure that you are comfortable with the type of service and the robo-adviser that you’ve chosen before you invest.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">Is Robo-Advising for Me?</font></div><div class="plain"><b><br></b><font style="" class="plainlarge">Before getting started, shop around and research different robo-advisers’ investment product offerings and fee structures. Just because a friend or relative uses a certain service does not mean it is the right one for you. Robo-advisers use proprietary computer algorithms and software to build your portfolio based on how you answer a questionnaire or interview with a firm representative. </font>Computer programs are unique and different programs can make very different investment and portfolio recommendations, even when presented with exactly the same investor profiles.</div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">Things to Consider when Investing With a Robo-Adviser</font></div><div class="plain"><b><br></b><font style="" class="plainlarge">Even though robo-advisers offer a service that allows you to take a more passive approach to investing, you should continue to monitor and adjust your portfolio according to your needs. Handing off your investments to a robo-adviser and putting them on autopilot may yield unexpected or undesirable results. It is also important in selecting a robo-adviser to consider the extent to which you will need personalized investment advice or interactions with a financial services professional.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Before you choose to use a robo-adviser, reflect on these questions:</font></div><div class="plain"><br><ul><li class="plainlarge">Does the robo-adviser build a portfolio based on your financial goals while taking into account your appetite for risk? When you invest, you should always keep track of your investments and ensure your portfolio meets your long- and short-term needs. </li><li class="plainlarge">Are you comfortable and familiar with the types of investment products the robo-adviser will use to build your portfolio? Research and understand the investment products the robo-adviser you are considering uses before you invest. </li><li class="plainlarge">Do you like discussing ideas or asking questions when seeking financial advice? If so, be sure you understand the level of human interaction you will get with the robo-adviser you are planning to use. </li><li class="plainlarge">Do you want the ability to make decisions based on market fluctuations? With robo-advisers, you may not have the ability to buy and sell securities in your account as the market moves up or down. </li><li class="plainlarge">Are you considering any tax consequences that you may encounter for investment losses and/or gains? When investing, you should consider your yearly tax situation. You may want to talk to a tax consultant to better understand how using a robo-adviser may affect you. </li><li class="plainlarge">Are you comfortable and familiar with the robo-adviser’s fee structure and compensation model? You should know how much you are paying for the robo-adviser’s services and how these costs will affect your returns over time. </li></ul><br><font style="" class="highlight">How to Protect and Inform Yourself</font></div><div class="plain"><b><br></b><ul><li class="plainlarge"><b>Check Registration</b>. Firms that provide advisory services in the U.S. are typically registered with the Securities and Exchange Commission (SEC) or one or more state securities regulators. In Canada, robo-advisers must be registered with the securities regulators in the provinces it operates in. Check the <a rel="" link="" target="_blank" href="https://adviserinfo.sec.gov/" class="plainlarge">SEC’s Investment Adviser Public Disclosure database</a> or <a rel="" link="" target="_blank" href="https://brokercheck.finra.org/" class="plainlarge">FINRA’s BrokerCheck</a>. In Canada, use the <a rel="" link="" target="_blank" href="https://www.securities-administrators.ca/nrs/nrsearch.aspx?ID=850" class="plainlarge">National Registration Search</a>. </li><li class="plainlarge"><b>Check Disciplinary History</b>. Robo-adviser firms in the U.S. and Canada must comply with the laws of the jurisdiction they are operating in. Take a look at the firm you are considering to see if it has been subject to any disciplinary action. </li><li class="plainlarge"><b>Research the Company and its Management. </b>Look at the background and experience of the firm’s leadership. Be sure you are comfortable with the people guiding the investment and business strategy of the firm you are considering. You also may find news on a variety of topics such as its overall business strategy, management interviews, operational matters, or customer complaints. </li><li class="plainlarge"><b>Read Online Customer Reviews.</b> Online reviews will give you a sense of pros and cons of the service. You can get a feel for current or former clients’ satisfaction with the firm you are considering and the services it provides. Understand, however, that portfolio performance is unique to every individual. </li></ul><font style="" class="plainlarge"><br></font><font style="" class="highlight">The Bottom Line</font></div><div class="plain"><b><br></b><font style="" class="plainlarge">Robo-advisers are relatively new to the investing landscape. As with any new service, you should thoroughly investigate to make sure they are right for your investment needs. Before making any financial decisions, ask questions and do your homework. For more information, contact your state or provincial regulator. Contact information is available on the NASAA website, <a rel="" link="" target="_blank" href="http://www.nasaa.org/about-us/contact-us/contact-your-regulator/" class="plainlarge">here</a>.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38977970" class="plain"><img width="80" daid="18007149" src='//0104.nccdn.net/1_5/06f/3e6/232/Robo-Advisors-1---How-it-works.png' height="400" keep_prop="0" border="0"></a> <a rel="" link="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38977971" class="plain"><img width="160" daid="18007150" src='//0104.nccdn.net/1_5/06f/3e6/232/Robo-Advisors-2---Protect-and-inform-yourself.png' height="400" keep_prop="0" border="0"></a> <a rel="" link="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38977972" class="plain"><img width="160" daid="18007151" src='//0104.nccdn.net/1_5/06f/3e6/232/Robo-Advisors-3---Questions-to-consider.png' height="400" keep_prop="0" border="0"></a><br></font><br><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br><br></div><p class="plain"></p> FCNB 2019-07-15T10:10:50-07:00 Informed Investor Advisory: Robo-Advisers Informed Investor Advisory: Cross-Selling http://fcnb.ca/pc_url_38978159 <p class="plain"></p><div class="plain"><br></div><div class="plain"><br></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/198/0a8/2d2/Cross-Selling.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" border="0" size="250" daid="18004899">Are you an informed investor? </font><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b><br></b></font></div><div class="plain"><font style="" class="customtext2"><b>Cross-Selling</b></font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Cross-selling by banks and investment firms is a growing concern for securities regulators. At its best, this is a way for banks or investment firms to inform clients about the range of financial products and services available. At its worst, this common sales technique can take advantage of loyal clients.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">What is Cross-Selling?</font></div><div class="plain"><b><br></b><font style="" class="plainlarge"><a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976777" class="plainlarge">Cross-selling</a>, similar to upselling, lures investors into purchasing securities related to the original investment. Cross-selling may be mutually beneficial when done properly, providing best value to the customer and increasing revenue for the adviser, without added marketing costs. However, advisers may try to push a product outside their scope of knowledge, or an unregistered product, which can lead to problems in many cases.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">What Might a Cross-Selling Scheme Look Like?</font></div><div class="plain"><b><br></b><font style="" class="plainlarge">Suppose a pre-existing client is casually approached by their investment adviser or bank representative about a new type of investment opportunity with the investment firm or bank. In this scenario the adviser or bank representative would use the pre-existing positive relationship to influence the client to increase their investments or advance with a new product.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Financial services companies claim this is a fair and highly effective marketing strategy, simply informing the client of the products and programs available to them. However, aggressive cross-selling has been reported as misleading the client, particularly when the client is financially vulnerable, elderly or suffering from diminished capacity, or otherwise easily swayed by sales tactics. If an adviser or bank representative is not acting in the client’s best interest, this could be considered a breach of fiduciary duty.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">In several cases, bank representatives steered elderly clients towards the bank’s securities branch, which encouraged the clients to sell CDs and use that money to invest in high-risk investment vehicles.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext1"><b><i>EXAMPLE: </i></b></font></div><div class="plain"><font style="" class="plainlarge"><i>Investment Adviser A, a previously licensed insurance adviser whose license had been revoked, has partnered with Investment Adviser B to continue working with his clients.</i></font></div><div class="plain"><font style="" class="plainlarge"><i><br></i></font><font style="" class="plainlarge"><i>Investment Adviser B offers insurance policies and Investment Adviser A offers private investment opportunities.</i></font></div><div class="plain"><font style="" class="plainlarge"><i><br></i></font><font style="" class="plainlarge"><i>Their clients are cross-sold the private investment opportunities, neither Investment Adviser B nor the private investment product is registered.</i></font></div><div class="plain"><font style="" class="plainlarge"><i><br></i></font><i><font style="" class="plainlarge"><i>This scheme is successful for Advisers A and B due to their strong and previously established trusting relationships with their clients.</i></font></i></div><div class="plain"><font style="" class="plainlarge"><i><br></i></font><font style="" class="highlight"><a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976778" class="highlight">Red Flags to Watch For</a></font></div><div class="plain"><b><br></b><font style="" class="plainlarge"><b>Unregistered Investment Professionals and Unregistered Products –</b>Federal, state and provincial securities law require both the investment and investment professional to be registered or qualify for an exemption. If either the professional or investment product is unregistered, you should investigate further.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Aggressive Sales Tactics –</b> “once in a lifetime”, “must act now” or “limited availability” are examples of high pressure sales pitches which create a false sense of urgency for investors.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b><a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976778" class="plainlarge"><b>High Returns with Little to No Risk</b></a> – </b>classic warning sign of fraud, be suspicious of any investment that is said to be risk free.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Unsolicited Investment Offerings </b>– consider the motivation, be careful if contacted about an investment opportunity, when you didn’t request the information from the provider.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Limited Information, No Written Documentation – </b>a legitimate investment should be confirmed in writing. Sloppy offering documents (such as documents with grammatical errors or that appear carelessly put together) should be a warning sign that the offering could be a scam.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">How to Protect Yourself</font></div><div class="plain"><b><br></b><font style="" class="plainlarge"><b>Check</b> with FINRA’s <a link="" rel="" target="_blank" href="https://brokercheck.finra.org/" class="plainlarge">BrokerCheck </a>database and your state or <a link="" rel="" target="_blank" href="http://www.nasaa.org/about-us/contact-us/contact-your-regulator/" class="plainlarge">provincial securities regulator</a> to evaluate the bona fides of the financial advisers and offering materials. Regardless of how long you have known a person or been conducting business with an individual, it’s worthwhile to do a quick search in the database to confirm up-to-date <a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976779" class="plainlarge">licensing </a>and compliance.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Ask </b>questions about the offering and research the ostensible investment opportunity. Find out how the investment will generate returns, time frame for pay out, costs associated, and how your adviser will be commissioned. Enlist the help of a financial professional, lawyer or accountant who is independent from the adviser or bank offering the investment, to help you determine if the investment is a good fit for you.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Be skeptical of high-pressure sales tactics</b>. Sales pitches that seem too good to be true are part of the art of persuasion con artists use against unwitting victims. Know that all investments carry some risk and the higher the return generally the greater the risk. If you are contacted out of the blue, be suspicious, especially if asked to keep the investment a secret. Lastly, resist the pressure to invest quickly, any reputable investment professional should respect your time, allow you to do research and not press you for an immediate answer.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">The Bottom Line</font></div><div class="plain"><font style="" class="highlight"><br></font><font style="" class="plainlarge">Cross-Selling is a very common sales strategy and it’s emerging more into the banking and investment world. Investors may be easily swayed to invest in products not in their best interest. Look out for dubious sales pitches. Before making any financial decisions, ask questions, and do your homework. For more information, contact your state or provincial regulator. Contact information is available on the NASAA website, <a link="" rel="" target="_blank" href="http://www.nasaa.org/about-us/contact-us/contact-your-regulator/" class="plainlarge">here</a>.</font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge"><a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976777" class="plain"><img width="120" daid="18005050" src='//0104.nccdn.net/1_5/04a/08b/332/Cross-Selling-1---What-is-Cross-Selling.png' height="300" border="0"></a>  <a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976778" class="plain"><img width="120" daid="18005051" src='//0104.nccdn.net/1_5/04a/08b/332/Cross-Selling-2---What-investors-need-to-know.png' height="300" border="0"></a>  <a link="" rel="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=38976779" class="plain"><img width="120" daid="18005052" src='//0104.nccdn.net/1_5/1de/12e/169/Cross-Selling-3---Protect-yourself.png' height="300" border="0"></a><br></font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font><br></div><p class="plain"></p> FCNB 2019-07-11T07:25:28-07:00 Informed Investor Advisory: Cross-Selling How to recognize financial decline in seniors—and help prevent financial abuse. http://fcnb.ca/pc_url_38959949 <p class="plain"><b><font style="" class="heading1"><br></font></b></p><p class="plain"><b><font style="" class="heading1"><img width="250" align="left" daid="17994992" src='//0104.nccdn.net/1_5/38c/302/100/Senior-Financial-Decline.jpg' style="margin: 15px 15px 15px 0px;float: left" border="0" size="250">How to recognize financial decline in seniors—and help prevent financial abuse.</font></b></p> <p class="plain"><b> </b></p> <p class="plain">Financial abuse can happen to anyone. As we age and become more dependent on others, however, we can become more vulnerable to influence and pressure. This can lead to a situation of financial abuse or exploitation. The risk is even higher for those who suffer from some form of cognitive impairment (such as Alzheimer’s or dementia) as they may be significantly more dependent on others. </p> <p class="plain"> </p> <p class="plain">A serious financial loss is often devastating as senior victims of financial abuse struggle to regain their financial stability. Financial fraud and abuse can cause more than just money problems; victims lose trust in others, can become socially isolated, and show signs of health problems such as depression and anxiety. </p> <p class="plain"> </p> <p class="plain">According to Statistics Canada, New Brunswick is tied with Nova Scotia for having the highest percentage of seniors (19 per cent) in Canada. So it’s important that New Brunswick seniors prepare for a firm financial future, learn to recognize the signs of financial abuse, and know how to seek help when financial abuse is discovered. </p> <p class="plain"> </p> <p class="plain"><b>What financial abuse of seniors can look like</b></p> <p class="plain">Financial abuse is any act involving the misuse or abuse of funds or assets. It can include outright theft, abuse of power of attorney privileges, misuse of a senior’s finances, and targeting seniors to invest in unsuitable or fraudulent investment products. Common forms of abuse include:</p> <blockquote><p class="plain">•   Forcing someone to sign over power of attorney or control of their assets.</p><p class="plain">•   Forcing someone to sell their house or change their written will.</p><p class="plain">•   Depleting savings without the account holder’s knowledge.</p><p class="plain">•   Spending savings for items that do not benefit the account owner.</p><p class="plain">•   Withholding someone’s funds, pension cheque or other income.</p></blockquote> <p class="plain"> </p> <p class="plain"><b>Investment fraud, in particular, is common among seniors</b></p> <p class="plain">New Brunswickers who are exposed to investment fraud are most commonly approached by telephone, email, or through a friend, family member, or co-worker. Signs of investment fraud include:</p> <blockquote><p class="plain">•   Being approached out of the blue with a “great investment opportunity.”</p><p class="plain">•   Being promised a high or guaranteed return on a low-risk investment. </p><p class="plain">•   Feeling pressure to act quickly.</p><p class="plain">•   Negative reaction from the person selling the investment when asking questions or delaying a response.</p></blockquote> <p class="plain"> </p> <p class="plain">Seniors can take steps to protect themselves from financial fraud by hanging up the phone on unsolicited offers, and ignoring any inquiry into their finances or offer of investment opportunities from a stranger.</p> <p class="plain"> </p> <p class="plain"><b>Note that it’s not always malicious</b></p> <p class="plain">Being thrust into the role of primary caregiver for someone you love can come with a deluge of emotions and responsibilities. This can be overwhelming to say the least. A lack of knowledge around financial matters or responsibilities, or the absence of a care giver support system can lead to improper handling of financial matters. Don’t be afraid to ask for help from a financial professional. Our personal money management resources may help. <a link="" target="_blank" href="http://fcnb.ca/family-finances.html" class="plain"><i>Sandwich Generation – Are you stuck in the middle</i></a><i>?</i> provides a quick checklist for things to consider.  </p> <p class="plain"> </p> <p class="plain"><b>Signs of financial abuse or financial exploitation</b></p> <p class="plain">If you notice any of the following behaviours in a loved one, he or she may already be a victim of financial exploitation.<b> </b></p> <blockquote><p class="plain">•   Someone that you may not know or trust asking for access to your loved one’s bank accounts or to be your loved one’s power of attorney.</p><p class="plain">•   Your loved one feeling pressure to give money when they know they should not.</p><p class="plain">•   Your loved one not fully understanding where their money is going or experiencing unusual banking transactions.</p><p class="plain">•   Suddenly changing their will.</p><p class="plain">•   Unusual fear of or sudden change in feelings about a particular person.</p><p class="plain">•   Change in appearance or noticeably poor hygiene.</p><p class="plain">•   Being accompanied by a caregiver who is overly protective.</p><p class="plain">•   Change in ability to perform activities of daily living including self-care, daily finances, or medication management.</p><p class="plain">•   Discrepancy between standard of living and financial assets.</p></blockquote> <p class="plain"> </p> <p class="plain">Concerns about investment fraud can be reported to FCNB by calling 1 866 933-2222 or using our <a link="" target="_blank" href="http://fcnb.ca/complaints.html" class="plain">online form</a>.  Other forms of financial abuse should be reported to your local police or RCMP. </p> <p class="plain"> </p> <p class="plain"><b>Signs of diminished capacity </b></p> <p class="plain">When someone is struggling with diminished capacity, they’re more likely to fall victim to a financial fraud. The following are signs that they may be struggling with diminished capacity, and may need you to step in and lend a hand — before they experience financial decline.</p> <blockquote><p class="plain">•   Lots of unopened mail.</p><p class="plain">•   Taking longer than usual to complete everyday financial tasks, like paying bills.</p><p class="plain">•   Paying the same bill multiple times and not paying others.</p><p class="plain">•   Decline in math skills, like figuring out the tax on an item.</p><p class="plain">•   Decreased understanding of financial concepts, like interest rates.</p><p class="plain">•   Uncharacteristic purchases.</p><p class="plain">•   Changes in their investment portfolio that are not aligned with their risk tolerance.</p><p class="plain">•   General unkemptness of the house, especially if they are typically neat people.</p><p class="plain">•   Making repeated calls to their banks because they forget their PIN number.</p></blockquote> <p class="plain"> </p> <p class="plain">Our <a link="" rel="" target="_blank" href="http://0104.nccdn.net/1_5/274/290/19b/2018-05-Financial-Concerns-Checklist-EN.pdf" class="plain">Money Talks: Financial Abuse</a> brochure can help start a conversation about financial matters that may be concerning you.  </p> <p class="plain"> </p> <p class="plain"><b>How to help protect seniors in your life </b></p> <p class="plain">You may have a parent or other loved one with diminished financial capacity, or who you worry may face that issue in the future. If so, consider the following steps to help. </p> <blockquote><p class="plain">•   Have an open conversation about investments and other financial matters sooner rather than later.</p><p class="plain">•   Help your relative or friend with managing finances, if they request and consent to you helping. </p><p class="plain">•   If your family member or friend has named you to manage money or property, understand your responsibilities and how you can protect your loved one from financial exploitation.  FCNB has a brochure specifically for people who are acting as a power of attorney. <a link="" rel="" target="_blank" href="http://fcnb.ca/lifestages/estate-planning.html" class="plain">Download your free copy here</a>.</p></blockquote> <p class="plain"> </p> <p class="plain"><b>How to have a difficult talk about finances with your aging parents</b></p> <p class="plain">Broaching how to safely handle money with your aging parents isn’t the easiest conversation to have. Many seniors are uncomfortable talking about their financial situation. By disclosing their finances, they may feel they are losing control over their lives. Unfortunately, many grown children avoid the conversation — until it’s too late.</p> <p class="plain"> </p> <p class="plain">Try raising the topic when the entire family is gathered together to celebrate a holiday. It ensures everyone in the immediate family is on the same page when it comes to their parents’ finances. A non-confrontational way to raise the topic is by turning it into them helping you: if something went wrong, you would be at a loss to know how to help them.</p> <p class="plain"> </p> <p class="plain">During the family meeting, ask the following questions, and cover the following topics:</p> <blockquote><p class="plain">•   Do you have a will, trust or other legal document in place and is it current?  If personal circumstances have changed since it was originally drafted, like a beneficiary has died, should it be revisited?</p><p class="plain">•   Have you given someone <a link="" target="_blank" href="http://0104.nccdn.net/1_5/2ce/07d/108/Power-of-Attorney-English-Final-August-20--2014.pdf" class="plain">power of attorney</a> (POA)? If not, then consider it. A POA is a legal document that lets a person choose who they want to manage their affairs if they become unable to do so.</p><p class="plain">•   Have you thought about giving your financial planner authorization to contact a preselected and appointed, authorized emergency person — like a son or daughter — should the financial planner suspect diminished capacity?</p><p class="plain">•   Do you have a health-care directive? This is a document where you can communicate what you would like to have happen should you become ill and unable to communicate your wishes.</p><p class="plain">•   Discuss common scams that target seniors. It will help your parents identify, report, and protect themselves against financial abuse. Website resources, like those at <a link="" target="_blank" href="http://www.fcnb.ca/fraud" class="plain">FCNB.ca</a>, can provide information on common scams and frauds that New Brunswickers face.</p><p class="plain">•   For more vulnerable individuals, consider offering to regularly review their bank statements with them.</p><p class="plain">•   Listen for names of new friends that always seem to appear in their conversations. Isolation is a big contributing factor to senior financial abuse and some scam artists will prey on it.</p><p class="plain">•   Establish a family code word. That way, when your parents get a phone call from someone posing as a grandson and asking for a $10,000 loan, they can ask for the code word to verify their identity.</p></blockquote> <p class="plain"> </p> <p class="plain"><b>How to protect yourself as you age</b></p> <p class="plain">If you aren’t now, you will likely eventually be a senior yourself! Taking the steps listed below now may help avoid or minimize problems for you and your family as you age — and potentially find yourself with diminished capacity.</p> <blockquote><p class="plain">•   Organize your important documents. Download our <a link="" target="_blank" href="http://0104.nccdn.net/1_5/11a/110/041/The-Record-Keeper-Web-EN.pdf" class="plain">Record Keeper</a> to help you.</p><p class="plain"><b>•</b><b>   </b>Provide your financial professionals with trusted emergency contacts.</p><p class="plain"><b>•</b><b>   </b>Consider appointing an enduring (or durable) power of attorney and drafting a will as part of an estate plan. <i>(</i><i>For a power of attorney dealing with financial or property matters to continue to be effective if you lose your mental capacity to manage your own affairs, it must be created as an enduring power of attorney. This is also referred to as a durable power of attorney.)</i></p><p class="plain">•   Keep things up to date and review periodically to be sure your plans still reflect your current situation.</p></blockquote> <p class="plain"> </p> <p class="plain"><b>You can do this!</b></p> <p class="plain">Managing your finances safely and responsibly can be difficult at the best of times. And even young financially literate people can fall victim to financial frauds. Unfortunately, it’s not uncommon for us to experience some sort of decline in financial awareness and health as we age. Hopefully this guide can help you prepare for a safe financial future.</p><p class="plain"><br></p> FCNB 2019-06-19T07:16:44-07:00 How to recognize financial decline in seniors—and help prevent financial abuse. How to raise financially literate children http://fcnb.ca/pc_url_38904744 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/2ae/328/1e3/Youth-Guide.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="17969625">How to raise financially literate children</font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Teaching your children money basics is as important as helping them develop reading, writing and math skills. Financial literacy is an essential life skill. Kids don’t automatically pick up good money habits—we have to teach them, and it’s never too early to start. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">If you’ve tried to teach your kids about the value of a dollar and felt like you were over your head, don’t worry. You aren’t alone. In fact, we have heard from many New Brunswickers that they don’t know where to start when they try to talk to their kids about money.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Talking about money doesn't have to be intimidating or complicated. Teaching children about money can easily be integrated into daily family activities. In fact, teachable moments are a parent’s best friend. Shopping, planning a trip or going to the bank are opportunities to introduce financial concepts, to explain the difference between needs and wants, and to talk about saving, spending, and budgeting decisions. A simple question or comment about something they see every day can open the door to a much bigger conversation.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">And remember to always lead by example. Kids are very observant, and pick up cues from your behaviour! To make sure you are financially fit, check out<a rel="" link="" target="_blank" href="http://fcnb.ca/lifestages/resources-for-women.html" class="plainlarge"> I’m Worth It!</a> This program provides excellent information and strategies you can use when planning for your financial future and encourages you to spend based on your values, or what is most important in your life.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Here are some tips and ideas for how to introduce your children to financial literacy now so they grow up to be financially confident teens and adults.</font><font style="" class="plainlarge"> </font><font style="" class="plainlarge">Talk about financial goals and saving</font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Help your children make smart spending decisions by teaching them how to set financial goals. The next time your child asks for something new, whether it’s an iPad, the latest toy, brand name clothing, or sports equipment, turn it into a teachable moment by encouraging them to set a goal and save their money to buy the item, or pay for a portion of it themselves. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Use the goal setting template on page 55 of Make it Count to create a savings plan to achieve their goal and keep track of their progress. But remember, all work and no play makes budgeting a dull chore! If they don’t get to enjoy the money they worked hard for, they won’t stick to any savings plan. Reward them for sticking to their plan and show them that being smart with their money doesn’t have to mean going without any fun! <a rel="" link="" target="_blank" href="http://www.makeitcountonline.ca/csa/parents/setting-goals_en.html" class="plainlarge">Download the Goal Setting Activity</a></font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2">Teach them to keep track of money</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Your children may start receiving or earning money from a young age through allowances, gifts, and odd jobs like babysitting. As soon as your children start receiving money, help them keep track of it by teaching them how to use a budget.<a rel="" link="" target="_blank" href="http://www.makeitcountonline.ca/csa/parents/budgeting_en.html" class="plainlarge"> Download the Budgeting Activity</a></font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Help your child track their earnings and spending. Use the monthly budget sheet on page 51 of <a rel="" link="" target="_blank" href="http://www.fcnb.ca/lifestages/students.html?utm_source=Blog&utm_medium=Post&utm_campaign=YouthMonthEN&utm_content=QOTWBudget" class="plainlarge">Make it Count</a>. At the end of the month, look at their budget together and talk about what they enjoyed or regretted spending their money on and why. Tracking spending can be an eye-opening experience. Seeing where their money has gone can help them spend more mindfully in the future.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Once they have gotten used to tracking their spending, take it to the next level by having them set aside money for savings and making a plan for how they would like to spend their money next month.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Also, taking your child with you to the grocery store can be a great opportunity to talk about avoiding impulse purchases and sticking to a budget. Shop with a list and show them how you stick to purchasing just the items on your list. When they reach for the colourful box of candy next to the checkout, talk about the importance of using the list so you don’t spend more money than you have.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2">Describe healthy use of plastic</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Children are less and less likely to interact with physical cash, and transactions made with plastic (debit or credit cards) make it harder to feel the “pain” of parting with money. For older children, a prepaid debit or credit card can be a lower-risk way of introducing them to making purchases by swiping a card. It can help reinforce that a debit or credit card is not a magic, bottomless supply of money.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="highlight">5 things your child should know about credit:</font></div><div class="plain"><b><br></b><ul><li class="plainlarge">You need to have a clear plan for paying debt back. Taking on debt is convenient in the short term, but you shouldn’t borrow more than you can afford. And you should consider other options, such as saving up for a purchase, before impulsively swiping your card.</li><li class="plainlarge">Credit is not the same thing as free money. It’s the opposite – borrowing money costs you more, as you have to pay back what you borrowed plus interest.</li><li class="plainlarge">Using credit to buy things should only be done in certain circumstances. Credit cards are useful for online shopping that fits within your budget. Using it to pay other expenses may not be a good idea unless you’ve budgeted properly to pay it off in full.</li><li class="plainlarge">You should think about the lifespan of a product before buying it on credit. For instance, if you want to buy a video game that you think you’ll be done playing within three months, but it will take five months to repay the debt, it might not be wise to borrow money for that purchase.</li><li class="plainlarge">You should think about the value of the product to you. For parents, this is a great opportunity to talk about needs and wants and get your child thinking about the idea of value for money. </li></ul><font style="" class="plainlarge"><br></font><font style="" class="customtext2">Teach them that money can be fun.</font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><br></span></font><font style="" class="plainlarge">Being responsible with our money is important, but it’s also important to do enjoyable things with it so that we don’t feel like saving is a chore. That being said, overspending on entertainment is easy to do. A night at the movies for a family of four can easily add up to $80 or more! Show your children they can have fun and be smart with their money at the same time! <a rel="" link="" target="_blank" href="http://www.makeitcountonline.ca/csa/parents/recreational-spending_en.html" class="plainlarge">Download the Recreational Spending Activity</a></font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2">Special advice for older students</font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><br></span></font><font style="" class="plainlarge">Tuition, books, housing, groceries, bills…paying for post-secondary education and avoiding a heavy debt load is a big challenge– but not impossible. You can find lots of ways to save and manage your money while you’re studying. There are several ways to set money aside to help take away some of your stress. Here are a few tips you can use to save money:</font></div><div class="plain"><br><ul><li class="plainlarge"><b>Apply for as many scholarships, bursaries and grants as you can.</b> Millions of dollars go unclaimed every year in Canada.  Here are some places you can start looking: </li><ul><ul><li class="plainlarge"><a rel="" link="" target="_blank" href="https://www.scholarshipscanada.com/" class="plainlarge">https://www.scholarshipscanada.com/</a></li><li class="plainlarge"><a rel="" link="" target="_blank" href="https://www.universitystudy.ca/plan-for-university/scholarships-grants-and-bursaries-for-canadian-students/" class="plainlarge">https://www.universitystudy.ca/plan-for-university/scholarships-grants-and-bursaries-for-canadian-students/</a></li><li class="plainlarge"><a rel="" link="" target="_blank" href="http://www.canadian-universities.net/Scholarships/" class="plainlarge">http://www.canadian-universities.net/Scholarships/</a></li></ul></ul><li class="plainlarge"><b>Start budget planning using our handy <a rel="" link="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=37036037" class="plainlarge"><b>student budgeting tool</b></a>.</b> Keep in mind how much money you have, how much you need to spend and how much you can spend.  </li><li class="plainlarge"><b>Buy used books or borrow them from the library</b>. Many universities have dedicated Facebook pages where students can sell their used books or even post requests for specific books.</li><li class="plainlarge"><b>Never do a grocery run when you’re already hungry</b>. You’re more likely to spend more money and make impulse purchases that will dip into your budget.</li><li class="plainlarge"><b>Don’t buy brand name items.</b> Most of the no-name brand items contain the same ingredients, but at a much cheaper price.</li><li class="plainlarge"><b>Try to limit how often you eat in restaurants. </b>Most universities and colleges offer meal plans, so check with yours to find a meal plan that meets your needs.</li><li class="plainlarge"><b>If you shop often at a particular store, consider getting a membership card or points card for that store.</b> Some retailers offer points cards that help you save money through discounts or other benefits.</li></ul><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Remember, it’s never too early to help your children start forming good financial habits! Hopefully these tips and ideas give you some ideas for how you can start talking about money with your children. Tomorrow’s smart spenders are today’s kids! Let’s all make sure they have the tools they need.</font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font></div><div class="plain"><br></div><p class="plain"></p> FCNB 2019-04-17T10:30:40-07:00 How to raise financially literate children Does your Budget Spark Joy? http://fcnb.ca/pc_url_38880630 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/201/39a/06b/Budget-Spark-Joy.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" border="0" size="250" daid="17960162">Does your Budget Spark Joy?</font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Are you swept up in the decluttering craze that’s been sweeping social media, blogs and TV screens the world over?  As part of your spring cleaning and decluttering, ask yourself if your budget is sparking much joy.  And though you can’t just toss out your budget if it does not spark joy, you can employ some my tidy up tips for your finances to declutter your budget!  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>1 - Track your Spending</b></font></div><div class="plain"><font style="" class="plainlarge">Keep track of everything you spend in the run of a day. Use an app, a notebook, save receipts, or use post-it notes.  Do whatever works for you.  A lot of disorderly spending habits will probably pop out at you that can be tidied up or tossed out!  For example, I noticed I was spending about $35 a week on take-out coffee (that adds up to almost $1700 a year!!).  I went out and bought a programmable coffee maker on sale for $25.  Not only can I get my daily coffee fix and wake up to a fresh pot every morning, I’m now saving about $1600 a year on coffee.  </font><font style="" class="plainlarge"> </font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="customtext2"><b>2 -  Get Organized</b></font></div><div class="plain"><font style="" class="plainlarge">Do you find yourself so lost in paper or e-mail clutter that bills are falling behind?  Even if you have the money to pay them on time, missing payments because of disorganization can leave you with some hefty late fees.  Declutter the billing process by calling your service providers and having the billing dates changed to line up with pay days.  Then set up online payments to be made automatically on the day the bills come due.  Your bills will always be paid on time without having to make a trip to the payment centre or mail a cheque.  And best of all, no more late payment fees! </font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="customtext2"><b>3 – Plan your meals</b></font></div><div class="plain"><font style="" class="plainlarge">Do you find your grocery bill is getting out of hand?  It’s easy for your grocery budget to balloon when you go to the grocery store hungry or unprepared.  To avoid a disorganized food budget, sit down for about a half hour before going grocery shopping and plan out your meals for the week.  Shop your cupboards and pantry first, and get your meal plan to line up with what you’ve already got in stock.  Organize your kitchen to get a handle of the food you have.  Then make up a list of any remaining ingredients and stick to that list.  Avoid temptation at the store with the mantra: “If you needed it, it would already be on your list.”  Using this process, I’m able to keep my grocery budget at $150 a week for a family of 3.</font></div><div class="plain"><font style="" class="customtext2"><b><br></b></font></div><div class="plain"><font style="" class="customtext2"><b>4 – Change your mindset</b></font></div><div class="plain"><font style="" class="plainlarge">I love shopping.  Home décor, clothes, craft supplies, you name it.  To help curb my impulse shopping (and reduce the clutter and the buyer’s remorse I often feel after a shopping spree), I have my own version of does it spark joy: I ask myself “Do I NEED this, or do I WANT this”.  I try and determine what value the item will bring to my life, and where it will live in my house (in an ongoing effort to reduce clutter).  If I’m still on the fence, as a final check, I analyse the price in terms of “hours worked”.  If I buy this pair of jeans for $90 - how many hours do I have to work to pay for them?  </font><font style="" class="plainlarge">This has really helped me avoid impulse purchases, and by doing so has saved me money and added clutter.</font><font style="" class="plainlarge"> </font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">By making these 4 changes, I’ve been able to tidy up my spending, organize my budget and relieve some money stress.  My budget now has room to put money towards short-term savings goals and long-term retirement savings goals.  Not only that, I feel much more empowered and I spend less time worrying about how to pay next month’s bills!</font><font style="" class="plainlarge"> </font><font style="" class="plainlarge">When you are trying to clean up your spending, make sure the money saving tips work for you.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Some of the changes may be a bit of a challenge to get used to at first, but it is worth the effort.  But remember- if you’re trying to follow budgeting tips that are completely out of sync with your values and goals, or if they make you absolutely miserable, realistically you’re never going to stick to them.  So start small with one or two smart spending habits and see how it goes.  You can build from there!  Trust me, saving money becomes addictive pretty quickly and before long you’ll be seeing what other tips you can use.</font><font style="" class="plainlarge"> </font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Good luck and enjoy watching your savings account grow!!</font></div><div class="plain"><font style="" class="plainlarge">-Marissa</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font><br></div><p class="plain"></p> FCNB 2019-03-28T07:00:17-07:00 Does your Budget Spark Joy? Fraud for Shelter & Fraud for Title http://fcnb.ca/pc_url_38871623 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/07e/2a5/0ab/FPM-Mortgage-Fraud-blog-post.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="17956053">Fraud for Shelter & Fraud for Title</font></div><div class="plain"><br></div><div class="plain"><font style="" class="plainlarge">Mortgage fraud is an issue that regulators, governments and financial institutions take very seriously – and it seems to be on the rise.  In fact, a 2017 an Equifax study found that suspected mortgage fraud has increased by 52% since 2013.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">In recent years, changes to interest rates and borrowing rules, and rising home prices and consumer debt loads has made it more difficult to qualify for a mortgage, leading borrowers to take the more drastic measure of lying on their mortgage application to be approved.  In fact, the same Equifax study found that 13% of Canadians would be comfortable lying about their income to be approved for a mortgage.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">You must be honest about your finances when applying for a mortgage.  Lying or exaggerating information on your application may be a criminal offence, regardless of the reasons behind it. </font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Protect yourself against mortgage fraud or engaging in fraud to qualify for a mortgage.  Here we’ll help you to recognize it, know the consequences, and protect yourself from becoming involved, or being victimized by a scammer. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>Recognize it</b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><font style="" class="plainlarge">Mortgage fraud can be committed by the homebuyer who knowingly incorrectly fills out an application, or by a scammer trying to defraud homebuyers.  Using a licensed mortgage associate or broker can also help ensure you aren’t involved in mortgage fraud.  Check the <a rel="" link="" target="_blank" href="https://portal.fcnb.ca/LicensedMortgageBrokersAndAssociates/" class="plainlarge">licence status of any associate</a> or broker you are considering working with.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>Fraud Committed by the Homebuyer: </b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><font style="" class="plainlarge">The following types of mortgage fraud are easily avoided by being honest on your application and not applying for a mortgage on someone else’s behalf.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><font style="" class="highlight">Fraud for Profit (value fraud) – </font>Fraud for profit involves deceiving a mortgage lender or homebuyer about the property’s true value or the value of renovations purported to have been completed, or providing forged appraisals to the purchaser, lender or both. The con artist typically purchases the property and then flips it to a complicit purchaser at an artificially inflated price.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><font style="" class="highlight">Fraud for Shelter/Housing –</font> Lying, purposely leaving out or exaggerating information to qualify for a mortgage larger than your income or credit history allows – with or without the knowledge of the professionals you are working with – is called fraud for shelter, and the consequences can be severe.  Even though the homebuyer may intend to live in the property and pay back the loan, lying on a mortgage application is still considered fraud.  Once you sign the application, you are responsible for the lie, regardless of whose idea it was or the reason for it.  It can be tough, but if a home is out of your price range, walk away, no matter how perfect it is. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Always fill out your mortgage application with accurate information and always read any documents before signing. If you notice inaccurate information, do not sign the contract. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><font style="" class="highlight">Straw Buyer – </font>The most common form of mortgage fraud, called straw buying, occurs when a con artist convinces someone with good credit to put their name on a mortgage application for a home that someone else will be buying, usually in return for the promise of a big payday. Once the mortgage is issued, however, the con artist takes off with the extra mortgage funds and the legal borrower on the mortgage is now liable for the mortgage payments. You may do it with good intentions (to help your children get into a home they otherwise wouldn’t be approved for), or you may be approached by a scammer offering you a big payout in return for using your personal information on the application.  Either way, you are on legally responsible for the mortgage payments.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>Fraud Committed by Scam Artists</b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><font style="" class="plainlarge">Unfortunately, there are also bad actors and scam artists looking to take advantage of new homeowners. The <a rel="" link="" target="_blank" href="https://www.fsco.gov.on.ca/en/mortgage/Pages/recognize-mortgage-fraud.aspx" class="plainlarge">Financial Services Commission of Ontario</a> have some great red flags of mortgage fraud.</font><font style="" class="plainlarge"><br></font><font style="" class="highlight"><br></font></div><div class="plain"><font style="" class="plainlarge"><font style="" class="highlight">Fraud for Title (Identity theft) –</font> In short, title fraud is when a scam artist pretends to be the home owner so they can transfer the ownership or title of a property into their name, get a new mortgage on the property, or sell the home.  Once the funds are advanced, the scammer leaves with the money. This type of identity theft can leave a homeowner forced to take legal steps to prove the fraud and regain ownership of their property.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><font style="" class="highlight">Foreclosure Fraud –</font> A scammer targets homeowners who may be at risk of defaulting on their mortgage, promising to help them avoid foreclosure.  They may offer a “consolidation” plan, and provide up-front cash to cover immediate bills. They offer to give you a loan or a little help with your mortgage in exchange for signing a transfer of title to them, which is held as security. Then the scam artist collects “debt payments” to cover the mortgage payments.  In reality, they do not deliver the services they promise – the mortgage payments are never made and the property may even be refinanced or sold as part of the consolidation.  The scammer takes off with the funds, leaving the original homeowner without title to their property and having to deal with debt-collection proceedings. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b><font style="" class="highlight">Reverse Mortgage Fraud –</font></b> Reverse mortgages are a legitimate product that may be a useful tool for individuals in certain limited circumstances but are not for everyone.  A reverse mortgage is designed for homeowners 55 years of age and older. This type of loan requires no monthly mortgage payments. The loan is secured by the equity in your home (the difference between the value of your home and the unpaid balance of your mortgage.)  Instead of making mortgage payments, the payments and interest on the mortgage accumulates and payment is deferred until you sell your home, or you no longer live in your home as your principal residence. Scam artists may take advantage of this product by manipulating a senior into borrowing against the equity in their home, and then pocketing the loan proceeds. Reverse mortgages are not appropriate for everyone and should be carefully considered.  Speak to a trusted advisor to fully understand all your options before deciding.</font></div><div class="plain"><br><font style="" class="customtext2"><b>Protect Yourself</b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><font style="" class="plainlarge">Here are some best practices you can follow to protect your name, your credit and your family:</font><ul><li class="plainlarge">Be honest on your application – do not omit, lie or exaggerate information</li><li class="plainlarge">Be cautious if you are offered services or monetary kickbacks to help you get a mortgage with a specific lender or to save you money on your mortgage – especially if you have been declined elsewhere. </li><li class="plainlarge">Never transfer title of your property to someone promising to help you pay your mortgage</li><li class="plainlarge">Never sign anything until you have fully read the document and you understand and agree to what you are signing</li><li class="plainlarge">Never be pressured to agree to or enter a mortgage that doesn’t fit your needs</li><li class="plainlarge">Never pay mortgage brokerage or lender fees and payments related to residential mortgages in cash or directly to a person.  These fees are collected and disbursed by your lawyer.  An exception may be the appraisal fee to the appraisal company once you receive the invoice. </li><li class="plainlarge">Get all information in writing and don’t rely on a verbal deal.</li><li class="plainlarge">Do not apply for a mortgage on behalf of someone else, or add your name to a mortgage unless you full intend to buy the property.</li><li class="plainlarge">Do a land title search – this will show if anyone else has a financial interest in the home and any mortgage or liens already registered on the title.</li><li class="plainlarge">Secure your deposit – make sure your funds are held “in trust”.</li><li class="plainlarge">Consult your own layer – ask your lawyer about title insurance to protect against title fraud.</li><li class="plainlarge">Use only licensed real estate professionals and mortgage brokers.</li></ul><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">It’s also important to know the red flags of <a rel="" link="" target="_blank" href="http://www.rcmp-grc.gc.ca/scams-fraudes/id-theft-vol-eng.htm" class="plainlarge">identity theft</a> and how to protect yourself:</font><ul><li class="plainlarge">Watch for and report unusual activity on your credit report. Applications for credit, loans, or mortgages that you didn’t submit yourself are a major red flag that your identity has been stolen.</li><li class="plainlarge">Regularly monitor your financial statements for unusual transactions.</li><li class="plainlarge">Dispose of mail containing personal information safely.</li><li class="plainlarge">Keep information with the <a rel="" link="" target="_blank" href="http://www.fcnb.ca/credit-reporting.html" class="plainlarge">credit bureaus</a> (Equifax and TransUnion) up to date.</li><li class="plainlarge">Place important identification in a safe place.</li></ul><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">If you suspect your identity has been stolen, report it to the RCMP or your local police force.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">For most New Brunswickers, your home is your largest investment – and it’s important to protect yourself against mortgage fraud or engaging in fraud to qualify for a mortgage. The ramifications can go beyond losing the house of your dreams!</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://fcnb.ca/mortgage-fraud.html" class="plainlarge">Click here</a> for more information on mortgage fraud.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">*Equifax Canada. January 2017. [Press Release]. Mortgage Fraud on the Rise. Accessed from: <a rel="" link="" target="" href="javascript:void(null)" class="plainlarge">https://www.consumer.equifax.ca/about-equifax/press-releases/-/blogs/equifax-canada-mortgage-fraud-on-the-rise/ ; 13% of Canadians Say 'a Little White Lie' is Okay to Get the House You Want</a></font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font></div><div class="plain"><br></div><p class="plain"></p> FCNB 2019-03-21T07:00:11-07:00 Fraud for Shelter & Fraud for Title How to beer-proof your budget http://fcnb.ca/pc_url_38863259 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/0ca/07f/347/Beer-proof-Budget.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="17951959">How to beer-proof your budget  </font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">One of my friends and I were talking about how she came to own a machine that carbonates water, despite the fact she barely drinks carbonated water. It turns out she’d bought it on impulse after dinner and drinks out with friends. So, although she rarely uses the machine she keeps it as a reminder that money and alcohol don’t mix. I’ll admit – I love online “window shopping”.  But I’m careful to do it with the right frame of mind. I rarely make a purchase unless I need something that I can find at a great price online, and I keep my credit card away from the computer desk.  I know that online shopping spree with a glass of wine or suds in hand may seem like a great idea at the time, but, along with the credit card statement, I’d also likely be dealing with a hefty case of buyer’s remorse.  Mixing shopping and alcohol can lead to blown budgets, credit card abuse, and even identity theft. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Alcohol knocks down our inhibitions, making us more impulsive and less able to stand up to temptation. We tend to spend more money after a drink or two.  Retailers recognize this and send “happy hour” marketing emails, or they launch online sales later at night to catch the post-bar crowd. To guard against such practices, check out our program “I’m Worth It”.  It’s full of spending and saving information to help you develop your skills as a smart consumer. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Here are some tips to “booze proof” your budget and to avoid waking up with a spending hangover:</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Leave credit cards at home or in another room. </b> If you know you’ll be sipping a little, leaving the cards at home can help remove the temptation to spend more than you have.  Leaving your purse or wallet in another room can also help.  The simple act of having to walk to another room may be enough to deter (or at least give you time to reconsider) the purchase. When shopping online, it’s also a good idea to not leave things in your cart that you could come back to and one-click buy later.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Make a list and stick to it.</b>  If you do have shopping to do, make a list of things you need to purchase.  Put the price of the items on the list for that extra reminder of your budget. That way, even if you do have a little extra “glow” while making purchases, they’re ones you have already included in your budget.  Even though you may get a great deal on an online purchase, if you didn’t budget for it or make a plan to pay off the credit card bill, the added interest charges can end up costing you much more in the long-run. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Shop first.</b>  If you are meeting friends to do some shopping and socializing, and you know there will be alcohol involved, get the shopping done first.  Then relax and enjoy a social drink without worrying about waking up to find out you’re the proud owner of a new cashmere sweater that looks alarmingly similar to one you already own, or a leather recliner for your man-cave that you don’t recall purchasing.  And don’t forget to budget safe transportation home if you do enjoy a social drink or two once the shopping is done!</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Always keep receipts. </b> If you do wake up with a regrettable purchase, you may be able to return the item under the store’s return policy.  But remember, a store does not have to take the item back just because you changed your mind.  Each store sets their own return policy, so know the details before you make a purchase.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">These tips can help you this holiday season to ensure you don’t end up with more than you bargained or budgeted for. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">More information about smart spending, budgeting and preventing buyer’s remorse is available at <a rel="" link="" target="_blank" href="http://fcnb.ca/consumer.html" class="plainlarge">http://fcnb.ca/consumer.html </a></font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script>  </font><br></div><p class="plain"></p> FCNB 2019-03-14T05:10:03-07:00 How to beer-proof your budget Is investing in the cannabis industry right for you? http://fcnb.ca/pc_url_38855524 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/0a1/1b0/272/Cannabis-Investing.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="17948315">Is investing in the cannabis industry right for you? </font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">For some investors, the fact that cannabis is now legal in Canada might sound like a great investment opportunity. However, it is important to remember that investing in the cannabis industry is similar to investing in any emerging industry -  the hype can feel electrifying, and no one wants to feel they are missing out on a great opportunity - but before acting, be sure that the investment is right for you. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">The bottom line with any investment decision is that you need to do your research before you invest your money– not only to ensure the investment suits your needs and goals, but also to understand the implications it could have on your daily life.   This is particularly important in an emerging industry.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>Risks of investing in the cannabis industry</b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><font style="" class="plainlarge">Every investment comes with some level of risk. If anyone tells you otherwise, it is <b>too good to be true – and that is a <a rel="" link="" target="_blank" href="http://fcnb.ca/saving-investing/red-flags-of-fraud.html" class="plainlarge"><b>red flag of fraud</b></a>.</b> Some risks are common across many types of investments, but some may be unique in an emerging industry such as cannabis:</font></div><div class="plain"><font style="" class="plainlarge"><br></font><ul><li class="plainlarge"><b>Success isn’t a sure thing.</b> This goes for every investment, but it’s especially the case with an emerging industry. Likewise, start-ups can be riskier ventures.  When you invest in an emerging industry or a start-up you should be aware and able to handle the financial loss if you lose your entire investment.</li></ul><font style="" class="plainlarge"><br></font><ul><li class="plainlarge"><b>Changing regulations could have an impact on you</b>. Growing an emerging industry comes with its fair share of milestones. Issues unique to the cannabis industry may arise as time goes on and industry regulations could change. This could have an impact on your investment, and influence how quickly your investment grows, or whether it grows at all.</li></ul><font style="" class="plainlarge"><br></font><ul><li class="plainlarge"><b>You could have problems crossing the border.</b>  The U.S. Customs and Boarder Protection under the U.S. Department of Homeland Security have issued the following statement on <a rel="" link="" target="_blank" href="https://www.cbp.gov/newsroom/speeches-and-statements/cbp-statement-canadas-legalization-marijuana-and-crossing-border" class="plainlarge">Canada’s legalization of Marijuana and Crossing the Border</a>. </li></ul><font style="" class="plainlarge"><br></font><font style="" class="heading1"><b>Before you Invest</b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><ul><li class="plainlarge"><b>Review disclosure documents carefully</b>, and get clarification on anything you don’t understand. You want to be confident in how the investment works as well as your money will be used and the risks you’re taking. </li></ul><font style="" class="plainlarge"><br></font><ul><li class="plainlarge"><b>Talk to a registered advisor*</b>. They can help you assess whether a particular investment fits within your overall portfolio and whether the risks involved are acceptable for you. You can check the registration status of an adviser at <a rel="" link="" target="_blank" href="http://www.aretheyregistered.ca/" class="plainlarge">www.aretheyregistered.ca</a>. </li></ul><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">While it can be easy to get caught up in the excitement of a new industry, don’t let the flavour of the month push you off track from meeting your investment goals. Similar to any investment, talking with a <a rel="" link="" target="_blank" href="https://www.securities-administrators.ca/nrs/nrsearchprep.aspx?ID=1325" class="plainlarge">financial advisor</a>* and determining your financial situation and goals is critical to making an investment decision that is reasonable and suitable for your overall portfolio. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainsmall">* The terms ‘adviser’ and ‘financial adviser’ used here generally refer to a financial professional (which may include securities dealers; advisers; dealing representatives; advising representatives; or other registrants) and do not indicate a category of registration.  The registration category is more important than a title – always check registration before you invest.</font></div><div class="plain"><br></div><div class="plain"><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font></div><p class="plain"></p> FCNB 2019-03-06T10:40:22-08:00 Is investing in the cannabis industry right for you? Managing Money as a Student http://fcnb.ca/pc_url_38847823 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/0e1/369/1cf/Student-Budget-2.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="17944911">Managing Money as a Student</font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">Budgeting as a student can be tough. Not only are many students new to budgeting, they often also have irregular income and/or student loan funds to manage. And around the time of spring break, there is a crunch from six months worth of tuition, books, housing, groceries, bills, and more. Paying for post-secondary education while avoiding a heavy debt load is definitely a big challenge – but it is possible! </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">As a student, you may be relying on your student loan, which can be a great help – but what if you haven’t budgeted and now need to spread a smaller amount of money out over the remainder of the school term? Or, maybe you’ve gone through more of the loan than you thought and are worried about money for the rest of your school term.  Don’t panic.  You can start fresh by taking advantage of these tips and tools to help you manage the remainder of your lump sum of cash so it will last for the time you’ll need it: </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://fcnb.ca/budgeting-tips.html" class="plainlarge">Budgeting and Spending Tips </a></font></div><div class="plain"><a rel="" link="" target="_blank" href="http://cms.bigsanto.com/Tools/file_direct_link.html?node_id=34977241" class="plain">Student Budget Worksheet</a></div><div class="plain"><a rel="" link="" target="_blank" href="https://www.youtube.com/watch?v=URkAgh5_vzc" class="plainlarge">Vlog: Budgeting on an irregular income</a></div><div class="plain"><font style="" class="plainlarge"><br></font><b>Don’t Fall into the Debt Trap!</b></div><div class="plain"><font style="" class="plainlarge"><b><br></b></font><font style="" class="plainlarge">Students also need to be mindful of taking on credit during this time in your life. Post-secondary students have some big expenses and often turn to high interest debt, including credit cards, to cover these costs. .  Short-term debt can take a long time to repay, and can lead to credit problems in the future. In fact, three in four Canadian graduates have regrets about their student debt (this includes loans and lines of credit), and 25 percent wish they would have avoided adding to other debts, such as credit card debt*. The key here again is budgeting!  You need to budget to make sure you’re spending within your means, regardless of whether you’re paying with credit or not.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">With studying and other stresses of school, it may feel impossible to take on one more task.  But taking a few minutes to get your budget in order will give you the peace of mind to get your papers and studying complete and still have some time (and maybe even some money) to enjoy the student life!</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">You may also be interested in these money tips for other areas of your life: </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Money Milestones Series:</b></font></div><div class="plain"><a rel="" link="" target="_blank" href="http://fcnb.ca/For-What-Its-Worth.html?fb_37818530_anch=37818671" class="plainlarge">Part 1 – 10 Tips to Save Money in University</a></div><div class="plain"><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://fcnb.ca/For-What-Its-Worth.html?fb_37818530_anch=37818702" class="plainlarge">Part 2 – Finding Your First Apartment</a></font></div><div class="plain"><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://fcnb.ca/For-What-Its-Worth.html?fb_37818530_anch=37818601" class="plainlarge">Part 3- Furnishing Your First Apartment</a></font></div><div class="plain"><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://fcnb.ca/For-What-Its-Worth.html?fb_37818530_anch=37818535" class="plainlarge">Part 4 - Protecting Yourself with Tenant’s Insurance</a></font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><b>Blog posts: </b></font></div><div class="plain"><font style="" class="plainlarge"><a rel="" link="" target="_blank" href="http://fcnb.ca/For-What-Its-Worth.html?fb_37818530_anch=38624253" class="plainlarge">No need to be salty about student debt</a></font></div><div class="plain"><font style="" class="plainlarge"><a link="" rel="" target="_blank" href="http://fcnb.ca/For-What-Its-Worth.html?fb_37818530_anch=38543172" class="plainlarge">How to make the most of your first summer job</a></font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainsmall">*According to an Ipsos Reid poll from 2017: <a rel="" link="" target="_blank" href="https://www.ipsos.com/en-ca/news-polls/BDO-student-debt-2017-09-18" class="plainsmall">https://www.ipsos.com/en-ca/news-polls/BDO-student-debt-2017-09-18 </a></font></div><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font></div><div class="plain"><br></div><p class="plain"></p> FCNB 2019-02-28T06:08:55-08:00 Managing Money as a Student Inheritance Scam http://fcnb.ca/pc_url_38842748 <p class="plain"></p><div class="plain"><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="heading1"><img width="250" align="left" src='//0104.nccdn.net/1_5/1e3/098/1e9/Inheritance-Scam-2.jpg' style="margin: 15px 15px 15px 0px;float: left" height="288" size="250" border="0" daid="17943015">Inheritance Scam</font><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><br></font></div><div class="plain"><font style="" class="plainlarge">It’s scary the numbers of ways that fraud can get you. While the scam may seem obvious in hindsight, some scam artists can be quite sophisticated in their approach. A recent scam was reported to FCNB where the scam artist used the victim’s religious faith to build an immediate connection and establish trust.  </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">The victim was contacted by the scammer via a social media platform and encouraged to share their email address. Once the personal emails started, the scammer used the ‘inheritance scam’ to gather the targeted victim’s personal information.  This scammer used affinity fraud to approach the victim and gain their trust.</font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Affinity fraud targets groups, such as social clubs and ethnic or religious communities. The scam artist abuses our instinct to trust those who are like us. Affinity fraud is usually linked to investing scams, with the common ones being a Ponzi or pyramid scheme.  For more information on affinity fraud, <a rel="" link="" target="_blank" href="http://fcnb.ca/saving-investing/red-flags-of-fraud.html#affinity" class="plainlarge">click here</a>. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>How the inheritance scam works: </b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><font style="" class="plainlarge">These scams offer you the promise of an inheritance, with the scammer claiming they have no-one to leave their money to. They may try to establish trust through a common charitable cause, religion or by claiming to be a long-lost relative. In reality, the scammer is trying to either steal your identity by having you reveal personal information, or gain access to your bank or credit card information, or both. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">Typically, the initial contact comes from out of the blue in a letter, an email or phone call and now social networking messages. In this recent report to FCNB, the scammer relied on the victim’s faith in God and indicated that the money was to be used to promote religious activities. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>Red Flags: </b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><ul><li class="plainlarge">You are contacted by someone you’ve never met in person. (Red Flag: no face-to-face contact)</li><li class="plainlarge">The scammer is located overseas, so meeting in person is not possible. (Red Flag: no face-to-face contact)</li><li class="plainlarge">If the letter comes in the mail, there are often multiple addresses. For example, the postage stamp may be from one country with the return address being from another and the documentation you receive is from yet another location. (Red Flag: Inconsistent information)</li><li class="plainlarge">The scam artist may provide documentation that looks legitimate, but it usually contains spelling or grammatical errors. (Red Flag: Not professional documentation)</li><li class="plainlarge">The size of the inheritance is usually in the millions of dollars. (Red Flag: Too good to be true)</li><li class="plainlarge">The scammer requests personal information such as birth date or financial information. (Red Flag: Being asked to provide sensitive information to a stranger)</li><li class="plainlarge">The scammer uses faith or other means to try to establish an immediate connection. (Red Flag: Playing to people’s instinct to trust those who are like us)</li></ul><font style="" class="plainlarge"><br></font><font style="" class="customtext2"><b>What to do if you’ve been targeted: </b></font></div><div class="plain"><font style="" class="plainlarge"><span style="" class="plain"><b><br></b></span></font><ul><li class="plainlarge">When approached, whether online or in-person, about any transaction that requires personal information, think critically. Ask yourself, is it likely that a stranger you’ve never met would be willing to give you millions of dollars just based on an email? </li><li class="plainlarge">Never provide money or sensitive information to anyone you don’t know, or have only met online. </li><li class="plainlarge">Avoid any arrangement that asks for upfront payment via money order, wire transfer, bitcoin or other electronic currency.</li><li class="plainlarge"><a rel="" link="" target="_blank" href="https://support.google.com/websearch/answer/1325808?co=GENIE.Platform%3DAndroid&hl=en" class="plainlarge">Do a reverse image search</a> to determine if any images are shared on other websites.</li><li class="plainlarge">Do an internet search using the names or contact details, as well as the exact wording of the email or letter to determine any references to a scam. </li><li class="plainlarge">Seek advice from a lawyer, accountant or other trusted professional if you have any doubts about the legitimacy of an offer.</li><li class="plainlarge">If you think it’s a scam, simply delete the message. If you open the door, scam artists will try to manipulate you by playing on your emotions or beliefs to achieve their goal. </li></ul><font style="" class="plainlarge"><br></font><font style="" class="plainlarge">At FCNB we share information on the red flags of fraud and information about current scams circulating in the province in an effort to help New Brunswickers protect themselves and their communities. While scams change and adapt, the red flags of fraud tend to be common across different types of scams. The more people can recognize the red flags, think critically about offers and be vigilant, the fewer people will end up being scammed. </font></div><div class="plain"><font style="" class="plainlarge"><br></font><font style="" class="plainlarge"><span displayText="Facebook" class="st_facebook_large"></span> <span displayText="Tweet" class="st_twitter_large"></span> <span displayText="LinkedIn" class="st_linkedin_large"></span> <span displayText="Email" class="st_email_large"></span> <script type="text/javascript">var switchTo5x=true;</script> <script src="http://w.sharethis.com/button/buttons.js" type="text/javascript"></script> <script type="text/javascript">stLight.options({publisher: "e727b6e4-f329-44bf-81ed-7fbcea81edbd"}); </script><br></font><br></div><p class="plain"></p> FCNB 2019-02-25T06:00:26-08:00 Inheritance Scam