By Kevin Rigg, Director of Financial Life Planning, SoundView Advisors
“Have you seen my keys?”
“Where did I leave my glasses?”
“Have I paid this bill yet?”
Undoubtedly, all of us ask questions like this, perhaps even multiple times a day! Forgetfulness is a part of everyday life and is often easily explained by distraction, stress, drowsiness, as well as numerous other factors. However, it can also be a sign of memory loss (or cognitive decline), something experienced by 1 in 9 adults over age 45 according to the CDC. As one might expect, the prevalence of cognitive decline increases as we age, and those who are dealing with it are often living alone (36.2% of those over 65).
As financial planners we strategize ways to grow and protect our client’s financial assets so they will have the resources necessary to handle increasing care needs, as they age. This planning is critical but equally important is assessing the risks to financial assets from fraud and mismanagement once someone begins to experience cognitive decline. The key is to discuss these issues and create a game plan early on, well before cognitive decline has begun.
Here at SoundView we have established a process to proactively help our clients deal with the potential of cognitive decline and it all centers around our Trusted Contact Designation (formerly known as the Sharing of Information Authorization). We ask all clients to complete this form, naming at least one trusted person we can contact, should we notice changes in behavior or patterns that could suggest a cognitive decline. Our job is not to diagnose cognitive decline, we will leave that to the medical professionals, but rather to recognize potential warning signs and alert others who are able to help.
In addition to the Trusted Contact Designation, we take additional steps to protect our clients from potential fraud and abuse:
Estate Document Review – We revisit estate documents periodically to ensure they accurately reflect our client’s wishes and name the proper individuals in trusted, decision-making roles.
Cash Flow Review – We annually review income and spending trends to identify irregular patterns or unexpected cash flows.
Freeze Credit Reports – We may suggest our clients contact each credit bureau to put a freeze on their credit and provide an extra layer of protection before opening new accounts.
Limit Solicitations – We recommend contacting these agencies to help reduce junk mail (www.optoutprescreen.com or 1-888-567-8688) and limit spam calls (www.donotcall.gov or 1-888-382-1222).
It’s never too early to start working on a game plan for dealing with memory loss. The next time you find yourself scouring the house for your misplaced keys, perhaps take a moment to assess how prepared you are to deal with the financial risk of cognitive decline, no matter how far in the future you think it might be. Your SoundView team is here and ready to help you make progress on that plan, beginning with the important steps reviewed above!