What You Need to Know
There are times in life when we may be hard to reach, whether by choice or due to circumstances. You might be on a long-awaited dream vacation and intentionally “unplugged,” enjoying time away from calls and messages. Or you could be in a remote area with limited cell service or Wi-Fi and find yourself disconnected not by choice, but by location. In serious situations like natural weather disasters, or a health crisis that requires hospitalization, your contact with others may be limited to just a few close family members or friends. Whatever the reason, it is not uncommon to go through periods when you are temporarily out of touch. If your financial firm ever needs you for urgent purposes during one of these times, it can be helpful for you to have a designated trusted contact.
The Benefit of Designating a Trusted Contact
Your financial firm wants to keep you and your accounts safe. One way they can help prevent fraud or exploitation is by having permission to contact someone you trust if they are unable to reach you directly. This person should be an adult, such as a family member or a close friend, who is typically familiar with your current situation.
What a Trusted Contact Can and Cannot Do
A trusted contact:
- Can confirm or provide your contact information to your financial firm. Maybe your advisor has been trying to reach you regarding unusual activity on your account. They have left messages, and you are not responding. Your trusted contact can verify if your advisor has your current information.
- Can help your advisor understand why you might be out of contact. Your trusted contact may be aware that you recently lost your phone or were locked out of your email. Maybe you are travelling internationally and have only been checking in periodically. Your trusted contact can let your firm know this.
- Can confirm your health status. If you are hospitalized or otherwise physically unable to speak with your advisor or financial firm, your trusted contact can keep them updated on your condition.
- Can let your financial firm know if you have designated a new guardian, executor or granted financial power of attorney.
- Cannot access your account information.
- Cannot make decisions about your financial accounts.
- Cannot make changes or trades in your financial accounts.
- Does not have power of attorney.
- Does not become a legal guardian, executor or trustee (unless you specifically create legal estate planning documents that grant them these rights and responsibilities).
How do I set up a trusted contact?
Your financial advisor can assist you in setting up a trusted contact. You can also speak directly with representatives at other financial institutions where you hold accounts, such as Charles Schwab, to add a trusted contact with them as well.
You may select more than one person to be listed. It can be a good idea to contact any candidates you have in mind and ask them for permission to share their contact information. Your advisor will need their full name, address, phone number and email address. Once your advisor has listed your trusted contacts, you should review them periodically to ensure that their information is kept current. You can change who you would like to be listed as a trusted contact at any time by speaking with your advisor.
Frisch Financial Group is committed to helping you throughout every stage of your financial journey, and partnering with you to keep your accounts safe is just one aspect of what we do. If you have any questions about selecting a trusted contact, please contact us.
