A Dark Topic

Financial cognitive impairment, including dementia, poses a grave threat to many investors in their later years. This condition, characterized by a decline in financial decision-making abilities, can lead to dire consequences and depleted savings, especially for gung-ho, do-it-yourself investors who are resistant to engaging family members or establishing a durable power of attorney to address this sensitive topic.  

According to a recent article in The Wall Street Journal titled "Baby Boomers’ Biggest Financial Risk: Cognitive Decline,” almost half of older baby boomers will face significant cognitive issues before age 80. “This is a dark topic. Most people are scared of it,” Surya Kolluri, head of Bank of America’s retirement group, is quoted as saying in the article.  

Recognizing the dangers of financial dementia and taking positive measures today while cognitively aware is essential for securing financial stability later in life.

This subject is also a good opportunity to not only highlight the importance of including your “financial caretaker” in your planning, it is equally important to create a financial planning team that can guide you through the essential conversations included in a well-thought-out plan that lasts not only in your generation, but beyond.    

I share this topic with you because, over the past quarter century working with my team at Soundmark Wealth Management, we have seen families address the cognitive issues of loved ones. If you are concerned about the future unknowns and have $1 million or more of investible assets, I'd enjoy connecting with you. Let's discuss ways to mitigate your fears and set you and your family up for success.