Years ago our CCO got a call from a client who wanted to send money to Nigeria. It was her money and he cannot refuse to give her her money. Being concerned, his question was one of client’s rights over what is right. I believe it was suggested the rep call one of the beneficiaries to “update” information and indicate the beneficiary call his mother to discuss her assets and goals. All went well. — BK
Here the planner identified a way to find out what was going on.
One of my clients recently asked me for help with a friend of hers who she feels is being controlled by ‘aides’ that are at her house daily. I suggested that my client contact the NJ Senior Services department with her concerns. They will set up a physical appointment with the woman to assess the situation, and I’m sure that they will reach out to the son. — JM
These stories, and others I did not share here, tell me a few things. First, the quantity of responses lead me to believe it is unlikely you can practice financial planning and not encounter such situations. Second, the length of some of the tales (I edited all of the above to accommodate my word count limit) means people were passionate enough about the subject to take the considerable time needed to compose the e-mails to me. It is painful to see good people taken advantage of.
I was also struck by how family can be a great help -- or the perpetrators. Also, the “authorities” can do a better job than they are. In these examples, a state board of accountancy, compliance departments and state insurance departments were all unable or unwilling to help. Last, if these cases, in which exploitation is clear to observers, are so difficult to address, what hope is there for less obvious situations? Things are not always as they appear.
As JM puts it:
My own mother has cognitive degeneration, and I do not take everything she says as the exact truth. She often misunderstands instructions or appointment arrangements. She does not recognize the difference between a current bill and one that is from two years ago. Yet if you met her in the supermarket, you likely would not realize anything was amiss. I believe that in most cases it takes continued interaction with an individual over time to truly recognize when action is necessary.
What are planners doing to try to be better equipped for cognitive decline in clients? TD summed up the most common approach. “We're taking steps to have clients provide guidance to us on how to respond if we think there are competency issues. Not sufficient, but a start.”
I agree. If you haven’t started, you should get moving. These issues will only become more common.
Dan Moisand, CFP, has been featured as one of the America’s top independent financial advisors by most leading financial advisor publications. He has spoken to advisor groups on five continents on topics such as managing investments and navigating tax complexities for retirees, retirement readiness, and topics relating to the development of the financial planning profession. He practices in Melbourne, Fla. You can reach him at (321)253-5400 or [email protected]