Page 11 - Senior Times South Central Michigan - June 2020 - 27-06

Senior Times - June 2020 Page 11
WHEN A PARENT’S COGNITIVE DECLINE IMPAIRS MONEY MANAGEMENT
By: Jennifer Nelson
In the months leading up to Ken Rupert’s dad’s Alzheimer’s diagnosis at age 71 in 2008, Rupert noticed his father having trou- ble taking care of normal money matters he easily did for decades. His dad forgot to sign paperwork transferring one brokerage account to another, couldn’t answer simple questions about his finances, and had a ransomware scam on his computer.
to make life easier, by having just one credit card and one brokerage firm.
Try to set up as many automatic bill payments as possible, especially for utili- ties. This will ensure the bills get paid and the service doesn’t get shut off.
“It was pretty much a good sign that it was time to have ‘The Talk’ with my parents,” says Rupert, 55, a financial strategist and author of The Financial Black Belt’s Financial Self Defense Training Guide.
your parent about what you’re noticing. That could lead to either assisting your mom or dad with money management or hiring someone to do so. Post recommends using a light and respectful tone.
If your parents have a financial adviser, Black recommends meeting with that money pro along with them. This way, you’ll dis- creetly let the adviser know you’ll be looking in on your parents’ financials and, conversely, want to hear if anything seems amiss.
Rupert ultimately told them that it’s an electronic world with people constantly trying to rip them off and that they needed a guard- ian at the gate.
“Like talking about sex with our children, talking finances with elderly parents is not a one-time conversation,” says Patti B. Black, a Certified Financial Planner. “Start the conver- sation early and keep it going.”
Once you have partial or even total control over your parents’ finances, don’t keep the purse strings so tight that they, like children, have to ask for an allowance. “To the extent you can, give them some control about things that they can make decisions about,” says Black.
Stephen G. Post, director of the Center for Medical Humanities, N.Y. says, “Bad finan- cial decision making is usually one of the first signs of things to come.” According to a study published in Health Economics in 2019, peo- ple in the early stage of Alzheimer’s disease face a heightened risk of damaging financial outcomes – likely due to their compromised judgment, memory lapses, and vulnerability to fraud.
If you’re spotting cognitive/financial issues with your parent, it’s a good idea to learn where his or her important financial docu- ments are kept. You may also want to get a durable power of attorney for finances des- ignation drafted, giving you the authority to assume financial decision making if needed.
Finally, one thing Black says is helpful if a parent balks at something you want them to do financially is ask, “Would you consider doing this for me because it would give me peace of mind?”
Signs of financial cognitive decline include not paying bills on time, not opening mail, excessive shopping, hoarding, taking longer to read and comprehend financial information, and falling for financial scams.
Many financial experts also recommend getting your name added to your parent’s bank and brokerage accounts and the ability to see those statements, as Rupert did. Doing so will help you keep an eye on things and spot potential problems.
There’s a good chance the answer will be yes. “Your parent, no matter what age you are, still wants to parent you and make you feel OK,” says Black.
That’s why it’s essential for adult children noticing such signs to step in. A 2017 study by Merrill Lynch and the Age Wave research and consulting firm, found that 92% of care- givers handle financial matters for their loved ones.
Learn what bills your parents pay, what credit card and brokerage accounts they have, and whether there is still a mortgage. You may want to advise them to streamline things,
Publisher’s Note: While financial advisors might recommend adding an adult child to the parent’s bank accounts to make it easier when paying bills, your family attorney may advise against it. It is possible to set up documenta- tion so you can manage your parent’s financ- es and pay bills without your name on their accounts. Either way, the goal is to be able
to assist aging parent with their finances. Be sure to consult your attorney for your options.
You can start helping out by talking with
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