Page 18 - Advice Matters - FWP May 24

Regaining financial control after a scam

A year before retirement, Sharon’s superannuation plan was on who’d fallen victim to scams. Most felt insecure and vulnerable,
track, and she was imagining her post-work life. With savings of so his approach was to assist them with practical advice around
$34,000 at the bank, she was looking to park it somewhere it getting their finances back on track.
could earn better interest while rates were rising.
He believed that Sharon would benefit from a temporary, part-
Considering herself reasonably savvy with money, she began time job. She could rebuild her cash savings, and staying busy
investigating her options.
would distract her from her worries and help her move on.
After hearing about someone who’d made a fortune with When discussing her interests and skills, Sharon mentioned she
cryptocurrency, Sharon was intrigued and decided to look into it.
loved animals so Jarrod suggested she consider pet-minding or
Sharon researched crypto-companies and compared what was dog-walking, adding that he could setup the necessary insurance.
on offer. When eventually she made her decision, she believed
she’d chosen the right investment – how wrong could she be! Then, Jarrod explained, that while her superannuation was on
target, there was a difference between investing for retirement
Within hours Sharon realised she’d been scammed.
and investing for wealth.
Shocked and feeling ill, she reported it to ScamWatch, but over Retirement investing was about saving to fund an income stream
the following days the self-blame settled in.
that met post-work lifestyle goals. Complying retirement funds
How could she be so gullible? So naïve? offered tax advantages and focused on generating returns.
What was she thinking?! How could she have fallen for such an Conversely, investing for wealth involved accumulating assets
obvious fraud?
beyond what is needed to provide retirement income.
Who knew that financial shame was a thing? But there it was in For Sharon, financial security was critical, so Jarrod considered
the form of an empty bank account.
her risk tolerance and structured a tax-efficient portfolio of
Deeply embarrassed, her financial security shattered, Sharon growth assets to support capital appreciation and wealth
lay awake every night berating herself; through her foolishness accumulation.
she’d lost all her cash savings! She became withdrawn, declined
social events and refused to unburden herself, even to close It also meant that Sharon could leave something behind for
friends. Louise – a legacy she hadn’t felt was important, until she
realised how financially exposed the scam had left her.
Finally, in desperation, she decided to speak with a counsellor.
Sharon discovered organisations like Beyond Blue, ScamWatch Sharon’s recovery wasn’t without its challenges. It took time and
and Lifeline offered advice and emotional support. She chose sacrifice, but along the way she developed a greater sense of
one that felt right for her. independence and resilience.
Initially, it was difficult to open up and acknowledge her mistake, She delayed retirement by a year, so she could recoup her lost
but the counsellor explained that part of her recovery was savings and contribute the money from her new side hustle to
confronting her feelings head-on and realising that victims came
from all cultures, backgrounds and levels of education. Feelings her wealth portfolio.
of humiliation and shame were normal, although unjustified, as In the end, Sharon’s Dog Minding and Walking Service continued
the crooks were highly skilled criminals with access to the latest well after Sharon’s retirement, for the sheer enjoyment she
technology. derived from hanging out with dogs.

Heartened by the counsellor’s words, Sharon learned to stop Sources: www.affordanything.com Surviving a $35k credit card
blaming herself and confided in her daughter Louise. scam…foreclosure (29 November 2023)
What a relief that was! Louise was gentle and supportive, and www.beyondblue.org.au (Website 2022)
introduced Sharon to her friend Jarrod, a financial adviser. www.lifeline.org.au (Website 2024)
Throughout Jarrod’s career, he’d assisted innumerable people www.scamwatch.gov.au (Website no date visible)

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MAY 2024