• Unable to recall a whole event, such as a family trip
Advisors And Cognitive Decline
Financial advisors are typically on the frontline of cognitive decline—often noticing symptoms years before a diagnosis. Yet, despite the frequency that these issues impact older adults and their families, many are ill-equipped to address it. These cognitive changes can not only affect financial literacy and decision making, but also can wreak havoc on family dynamics and relationships if not addressed well in advance.
When it comes to aging management concerns, clients drop hints throughout their interactions with financial advisors. Some cues you should consider are:
• “I want to stay in control and make my own decisions”
• “I don’t want to be a burden to my children”
• “My mother should not be driving”
• “I need to understand Medicare and supplemental insurance coverage”
Encouraging your clients to establish an elder-care plan in advance provides them with a sense of control over their future and supports their desired independence. Advance planning and early conversations are especially important for people with dementia because the gradual loss complicates decision making as the older adult continues to age. The onset of this condition can manifest itself in many ways, and difficulties with managing finances, making decisions and bouts of uncertainty are often common.
The capacity to make one’s own decisions is fundamental to the ethical principle of respect for autonomy and is a key component of informed decision making. Determining whether a client has adequate capacity to make decisions is therefore an inherent aspect of protecting the family. In the presence of dementia, determining whether a client has adequate capacity is critical to striking the proper balance between respecting client autonomy and acting in a family’s best interest.