for Most, the ‘In’ Thing to Do

By Margaret McCormick

Are you thinking of retirement? Or wondering if you’ll need to work — and scrimp and save for the rest of your life — as a result of lower or lost wages, the sagging economy and Great Recession?

Words like frugal, penny-pincher, tightwad and cheapskate used to be considered insulting. Now it’s smart, maybe even hip, to quote Benjamin Franklin’s wise words: “A penny saved is a penny earned.’’

You wouldn’t be alone in doing so. A Gallup Poll released earlier this year found that 62 percent of Americans would rather save money than spend it, up from 48 percent a decade ago.

Here are some ways to save money and get good bang for your hard-earned bucks.

Home — Are you in good health, with an extra room or extra space in your house? To reduce expenses and gain companionship, consider renting a room to someone else in your age range. If you don’t know the person you are renting to, you will need to take precautions such as background check, references, security deposit, etc. Check with your municipality and consult a lawyer.

AARP Bulletin reports that home-sharing arrangements are on the rise, including family members rooming together or groups of people organizing in so-called intentional communities. A Bulletin survey found that 32 percent of people over age 50 are living with their parents, their adult children or both. Another 15 percent say it’s “likely” that they’ll begin living with parents or children in the next year.

But that’s not an option for everybody. Cynthia Stevenson, director of Caregiver Services for the Onondaga County Department of Aging and Youth, says there are a several cooperative living arrangements for seniors and “well elderly’’ in Onondaga County, including the House at 807, at 807 Oswego Road, in the village of Liverpool.

The house can accommodate up to eight residents, who each have a private room and share bathrooms. It’s close to services like parks and shopping and is on a bus line. It’s not cheap to live there, but it may be less expensive than maintaining an apartment or house and buying groceries: The fee is about $1,000 a month, and includes a prepared lunch and dinner each day and self-serve breakfast and snacks. A manager lives on site.

For information, call 457-1334 or go to www.house-at-807.org.

Clothing — Buy summer clothes now at end-of-season sales — as retailers focus their attention on fall and winter — and you can save a bundle of money.
Shopping at secondhand/thrift stores and consignment shops can also trim hundreds of dollars from your annual clothing tab. Prices tend to be higher at consignment shops but the clothing and accessories are of higher quality, too.

The number of resale shops has grown during the Great Recession — 7 percent in the last year alone, according to the National Association of Resale and Thrift Shops.

One of the newer shops in Central New York is EcoChic Consignment Boutique, at 4314 E. Genesee St., DeWitt. A recent spin through the store’s women’s racks found such well-known labels as Chicos, J.Jill, Talbots, Ann Taylor, BCBG, Flax and others, at considerable savings over regular retail.

Want to make some money and gain space in your closets? Purge your closets of clothes you no longer wear and sell gently worn, well-cared-for pieces at a consignment shop. Due to space limitations and shopper preferences, shops are selective about what they take in. Most shops charge an administration fee, and the consignor receives a percentage of the selling price.

Whether you’re looking to buy or sell clothing, don’t forget the online marketplace. Check out the previously worn fashions at sites like eBay and Craigslist and put some of your own castoffs up for sale.

Or just browse. Window shopping doesn’t cost a cent.

Food — Everyone knows to buy in bulk, to stock up on chicken when it’s 99 cents a pound and stash it in the freezer. For good buys and good health, eat seasonal and local and become a fixture at your farmers market. In season, there are dozens of markets in Central New York. Know when your favorite fruits and vegetables come into season and buy at the height of the season.

When every vendor has blueberries, bell peppers and sweet corn, there are deals to be had. Buy big (three dozen ears of corn, for instance) and ask for a discount. Shop at the end of the day, when vendors might reduce prices so they don’t have to cart their goods home.

The Central New York Regional Market, 2100 Park St., Syracuse, is open 10 a.m. to 6 p.m. Thursdays through late November and 7 a.m. to 2 p.m. Saturdays, year-round. For more information, call 422-8647.

Partner up: Support a local farmer and save on produce by buying a CSA (community supported agriculture) share. Grindstone Farm, a certified-organic farm in Pulaski, estimates those who buy a CSA share will save at least 20 percent over the cost of retail. A share this year cost $565 for 20 weeks, June to October. A share feeds two to four people, so split a share with family, friends or neighbors.

It’s too late for a Grindstone share this year, but not too early to think about next year. For more information, go to www.grindstonefarm.com. For more information on other community/CSA farms in Central New York, go to www.localharvest.org.

Entertainment — Add up the money you spend on books, magazines, music, movies and cable TV and chances are it adds up to a lot. You’ll be richer immediately if you pull the plug on your cable, which can cost $1,000 a year or more. You’ll miss it at first, but there are alternatives.

How about dinner at home — prepared from scratch, by you — and a movie from the library? The Onondaga County Public Libary (OCPL) has dozens of branches and thousands of titles, including recent movie releases and current TV fare like “Big Love” and “Mad Men.’’

The waiting list and wait time can be long. In the meantime, take out some books, have a look at your library’s music selection and check websites, newspapers and publications like Clipper Magazine for savings on dining out. The “Discount Deals” section at www.9wsyr.com has dozens of deals good at local restaurants.

Travel — Even people on a mission to save money need a change of scenery on occasion.
A number of senior centers in Central New York offer day trips and overnight excursions for members and the general public. The Manlius Senior Center, for example, has day trips to the Merry-Go-Round Playhouse in Auburn and Letchworth State Park, and a visit to the Adirondacks that includes an overnight stay.

The best deal of all: You get to meet new people and leave the driving to someone else. For more information, go to www.manliusseniors.org.

If you’re planning a trip and you’re a member of the AARP, check out the AARP Travel Center (www.expedia-aarp.com; 800-675-4318) for information on domestic and international packages, cruises, flights, hotels and more.

Other travel savings suggestions from AARP:

• Travel by train: Older train riders get discounts in the U.S. and Canada. Amtrak (www.amtrak.com) cuts 15 percent off most fares for riders 62 or older; Rail Canada (www.trainweb.com/travel/canada.html) offers 10 percent off the full adult fare for travelers over 60.

• Drive for free: Sign up at www.autodriveaway.com for cars that need to be relocated. The only fee is a $350 refundable deposit, and the first tank of gas is free. Also: Ask rental car companies about one-way deals to relocate their vehicles.

• Meet and greet: Global Greeter Network offers free sightseeing excursions in select cities, hosted by volunteers with insider knowledge and information to share. Participating cities include New York City, Chicago, Houston and Toronto. For information, go to www.globalgreeternetwork.info

The economic recession should make all consumers more aware of the multitude of scams and schemes designed to defraud.

The cautionary advice goes for seniors in particular, an AARP spokeswoman says.

“We’re not seeing a rash or increase of older people being victimized, but generally, seniors are more likely to be targeted in these scams,” says Luci deHaan, an AARP specialist in financial fraud.

Criminals tend to follow the money. That holds true for con artists, deHaan says.

“What we really find is the people who are more financially secure, those are the people being targeted by scam artists,” she says.

Some schemes center around persuading people to access their life savings for quick returns on shady investments.

Other seniors are drawing on money for everyday spending they should be saving for later in life.

“What we’re seeing is some people who are staring to take money out of 401k’s and IRAs and stop saving,” she says. “What we’re advising now is not to make rash decisions and have a plan in place and consult with financial advisers qualified to help you manage your finances.”
Get-rich-quick schemes rarely work, she adds.

DeHaan says seniors should be wary of Internet solicitations, known as “phishing.” Such scams can take the form of a communication from a supposedly legitimate financial institution requesting personal information so records can be updated. The same con can be done over the phone.

“It’s just a way to get their personal information,” deHaan says. “The first time you receive [contacts] like that, contact your bank first.”

She advises seniors to be wary of the “free lunch” seminars often advertised in newspapers and other media that lure people into situations where they are pressured to participate in questionable investment plans.
“That’s probably another area where people need to be careful to ask questions of a financial professional,”

DeHaan says. “They invite you there because they want you to buy their product. They’re pitched as a very soft-sell and when you have your lunch it becomes a very hard-sell. The key is not to make any commitments when you are there.”

DeHaan offered familiar advice: “The old saying is if it looks too good to be true, it probably is. There is no such thing as a free lunch and there is no such thing as a free dinner,” she says.

The FBI says older Americans are more likely to have a nest-egg, own their own home or have excellent credit, all financial sources a con man will try to tap into. Those who perpetrate fraud will focus their efforts “on the segment of the population most likely to be in a financial position to buy something,” according to the agency.

As they plan for retirement, seniors can fall victim to investment scams. Some of the more common are advance fee schemes, pyramid schemes, and Nigerian letter fraud schemes.

“People need to rid themselves of this notion of who the quintessential victim is for an investment scam. It’s often not the person living alone. It’s normally somebody who is financially savvy and considers themselves knowledgeable about their financial affairs,” deHaan says.

The fact that most people brought up in the 1930s, 1940s and 1950s “were generally raised to be polite and trusting” can work against them when up against a dishonest person, the FBI says.

“The con-man will exploit these traits knowing that it is difficult or impossible for these individuals to just say ‘no’ or hang up the phone,” according to the agency.

The FBI advises people to be aware of a range of schemes, including funeral and cemetery fraud, fraudulent “anti-aging” products, Internet fraud and telemarketing fraud.

Telemarketing scam artists often target people age 60 and older by trying to sell them bogus products or services by phone. Older women living alone are special targets of the scam artists, according to the FBI. Telemarketing scams often involve offers of prizes, low-cost vitamins and health care products and travel offers.

Warning signs include promises of “free” or “low cost” vacations or get-rich-quick schemes. Many scam artists try to pressure the person on the other end of the line to act immediately, send money or provide a bank account number in order to receive a gift, vacation or prize.

It’s difficult to get your money back if you’ve been cheated over the phone. The FBI offers the following tips to avoid telemarketing fraud.

• Don’t buy from an unfamiliar company. Legitimate businesses understand a person may want more information about their company and will readily comply.

• Always ask for written material and wait until it is received before acting on any offer or charity solicitation. If you get brochures about costly investments, ask someone whose financial advice you trust to review them. Not everything in writing is true.

• Always check out unfamiliar companies with your local consumer protection agency, the Better Business Bureau, state Attorney General, the National Fraud Information Center or other watchdog groups.

• Obtain a salesperson’s name, business identity, telephone number, street address, mailing address and business license number before making a transaction. Verify the accuracy of the information.

• Before giving money to a charity or make an investment, find out what percentage of the money is paid in commissions and what percentage actually goes to the charity or investment.

• Always take your time making a decision. Legitimate companies won’t pressure you to make a snap decision.

• Never send money or give out personal information such as credit card numbers and expiration dates, bank account numbers, birth date or social security numbers to unfamiliar companies or unknown persons.
Many people, particularly senior citizens, are reluctant to report they have been the victim of a fraud scheme.
“Very often, they are not reported,” deHaan says.

Other scams that target seniors identified by the FBI fall into the category of health insurance fraud.
Included on the list is medical equipment fraud, Medicare fraud, services that are billed but not performed and “rolling lab” schemes that involve unnecessary and sometime fake tests given to individuals at health clubs, retirement homes or shopping malls and billed to insurance companies or Medicare.

The FBI offers the following tips to avoid health insurance fraud:

• Never sign blank insurance claim forms.

• Never give blank authorization to a medical provider to bill for services rendered.

• Ask you medical providers what they will charge and what you will be expected to pay out-of-pocket.

• Carefully review your insurer’s explanation of the benefits statement. Call your insurer and provider if you have questions.

• Do not do business with door-to-door or telephone salespeople who tell you that services or medical equipment are free.

• Give your insurance/Medicare identification only to those who have provided you with medical services.

• Keep accurate records of all health care appointments.

• Know if your physician ordered equipment for you.
The FBI also advises seniors to be on guard against counterfeit prescription drugs. It asks consumers to:

• Be mindful of appearance and closely examine the packaging and lot numbers of prescription drugs. Be alert of any changes from one prescription to the next.

• Consult your pharmacist or physician if your prescription drug looks suspicious.

• Alert your pharmacist and physician immediately if you medication causes adverse side effects or if your condition does not improve.

• Use caution when purchasing drugs on the Internet. Do not purchase medications from unlicensed online distributors or those who sell medications without a prescription, Reputable online pharmacies will have a seal of approval called the Verified Internet Pharmacy Practice Site (VIPPS), provided by the Association of Boards of Pharmacy in the U.S.

The bottom line in avoiding becoming a scam victim, deHaan says, is to remain vigilant.

“We’re advising people not to make rash decisions and if they are very worried (about personal finances) put together a plan and contact an expert. Get informed, learn about your portfolio and don’t be afraid to ask for help,” she says.

By Ken Little