memory loss

What happens to your finances if you suffer from memory loss?

Memory loss can have negative financial repercussions beyond not knowing where you misplaced your checkbook.

Time to hand over the reins

If someone you love finds it hard to remember things, financial tasks may slip through the cracks. Not paying bills in a timely manner could incur late penalties, and not watching your investments could mean lost opportunities to realize gains or prevent losses.

One of the worst problems with memory loss is that it causes vulnerability and exposes you to a greater possibility of being a victim of financial fraud or elder abuse.

A sensitive topic

If an elderly parent or relative is starting to show signs of cognitive impairment, it may be time for them to delegate authority for their finances to someone they trust. However, for many seniors, the thought of relinquishing control over any part of their lives is daunting and they may resist the idea. They will probably tell you that their momentary forgetfulness is not that serious and everything is fine.

Soothe any misgivings by explaining your concerns. Figure out the next steps together, such as who to appoint as power of attorney, and add additional names to any financial accounts in accordance with the advice you get from your financial advisor or lawyer.

This process can be gradual. Your parents can play as much of an active part as they wish, discussing their goals and investments – but with help. For example, you could open a joint account with your parent(s), so that you can physically pay the bills for them, but they can still make independent transactions themselves.

For more information about delegating financial responsibilities when managing finances becomes too difficult, click here. If you need help with beginning the conversation, call my office and tell me about your situation: 02-624-2788.

Douglas Goldstein, CFP®, is the Director of Profile Investment Service, Ltd., which specializes in helping people who live in Israel with their US dollar assets and American investment and retirement accounts. He helps olim meet their financial goals through asset allocation, financial planning, and using money managers.

Published June 18, 2018.

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