“A person who is having memory problems will need more time. All you need to do in order to justify that time to regulators is to disclose to the client your charges, make sure they agree, and document everything,” Smith says.
“In the future we are going to see even more clients with mild cognitive impairment and diminished capacity in the advisor community,” she says. “Advisors should not try to diagnosis changes in someone’s mental state because we are not trained for that.”
It is often advantageous to bring in another person from the firm to help take notes and keep track of what is decided in meetings, the advisors say.
“From the advisor’s side, a second person can help document the communication with the client. From the client’s side, the person may be able to help make decisions,” says Hickman. It also can be an opportunity to build new business, adds Crowell.
Because advisors are faced with a growing number of aging clients, some of whom will face cognitive impairment, Transamerica and the MIT AgeLab has a booklet, "Financial Planning in the Age of Dementia," to help advisors recognize and work with clients who are beginning to experience dementia.
“Initiating the conversations necessary to help this clientele is never easy,” Transamerica says, “but if you are willing to take the steps to educate and prepare yourself, you can take advantage of an opportunity to provide valuable and noble service to people.”
Advisors also should know how to talk with clients who may be experiencing early dementia.
“Clients with dementia may need things explained more than once, or in more than one way. You must be patient and repeat and rephrase ideas,” says Transamerica.
“You should meet with the client in the morning in an uncluttered room,” says Starnes. “Sit on the same side of the table as the client. Ask closed ended questions and give the client time to find her words.”
Smith adds, “Use a lower pitch of voice, speak slowly and distinctly, increase daytime lighting and do not use glossy print materials. An advisor should discuss one issue at a time and take extra time in switching from one topic to another.”