HOW A FINANCIAL ADVISOR CAN HELP YOU
No one wants to hear the words, “You have Alzheimer’s disease.” Whether it is you or your loved one who is receiving this diagnosis, it can feel like your whole world is turning upside down. You may have so many questions and spiraling emotions that you don’t know where to begin. You may feel numb or fearful of changes that may come as the disease progresses. As you begin to process the news of your diagnosis, you may feel anger that your life is altering beyond your control, relief that your concerns over your symptoms were valid, denial, depression, resentment that this is happening to you, feelings of isolation, and a sense of loss. Only someone who has experienced the devastation of this diagnosis firsthand can truly understand the impact of what you are going through, but that does not mean that you and your loved ones must navigate this alone. There are resources available to help you every step of the way.
According to the National Institute on Aging, it is estimated that more than 6 million Americans, most of them age 65 or older, may have Alzheimer’s disease. This is a brain disorder that slowly destroys memory and thinking skills and is currently ranked as the seventh leading cause of death in the United States. Early signs of the disease involve forgetting recent events or conversations. As it advances, memory issues worsen, affecting the ability to perform daily tasks. Eventually a person with Alzheimer’s disease may be unable to recognize and deal with numbers. If the individual who is suffering with Alzheimer’s is also the person who took care of their family’s financial matters, this presents an even greater challenge. Regardless of what stage Alzheimer’s has progressed to, one of the most beneficial things you can do is to enlist the help of a financial advisor.
There are a number of ways a financial advisor can help you after an Alzheimer’s diagnosis.
- Provide guidance and support. Alzheimer’s disease often begins developing long before symptoms appear. If you already have a financial advisor, it’s important to share any concerns about cognitive decline or an Alzheimer’s diagnosis as early as possible. If you’re starting a new client/advisor relationship, the more information you provide, the better your advisor can understand both your current and future needs. Working with an advisor who takes a holistic approach to financial planning and has experience with Alzheimer’s clients allows you to rely on them as a trusted ally. They can guide you through managing family finances and help develop a plan that prepares for your future needs. A financial advisor can also assist family members in understanding new roles they may need to assume, providing the education and support they need to move forward confidently.
- Financial Planning and Organizing. Alzheimer’s has five stages, some of which can last for years, or even decades, making the timeline of the disease’s progression difficult to predict. This requires careful financial planning. The individual with Alzheimer’s may be capable of working now but may no longer be able to as symptoms get worse. Or a spouse may need to reduce work hours to provide care at home. Numerous factors will come into play, as both changes in income and increased expenses need to be considered. A financial advisor can help organize financial records, review assets, debts, income, insurance policies, investment accounts, and retirement plans. They can also review any existing financial plans and make adjustments as needed.
- Budgeting and Cash Flow Management. Caring for an individual with Alzheimer’s can be overwhelming, especially when a spouse must also manage household finances. This can be particularly challenging for those who have never handled this responsibility before. Financial advisors can be a source of ongoing support, answering questions and providing guidance on how to navigate new tasks like paying bills.
- Long-term Care Planning. Alzheimer’s patients will have increased care needs that may be provided in various settings. Options include in-home assistance, assisted living facilities, nursing homes, or memory care units that specialize in dementia care. A patient’s needs might initially be met in one facility and then could require more specialized care from another facility as time goes on. Each will come with costs that can be expensive and it’s important to start planning for these as early as possible. A financial advisor can help estimate these expenses and create a plan to cover them.
- Investment Management. As cognitive decline increases, it is vital that your financial advisor is managing your investments. An Alzheimer’s diagnosis may bring changes to your needs and priorities, but your advisor is there to help you stay aligned with your financial goals. They can rebalance and adjust your portfolio as needed to ensure that you continue to make the most of your resources.
- Estate Planning. A diagnosis of Alzheimer’s creates urgency to update documents while the individual still has the legal capacity to make decisions. A financial advisor can review your specific family dynamics and financial resources and explain the different estate planning documents that would best suit your needs. If an estate plan has already been established, these documents will need to be reviewed and may require updating. The documents in an estate plan include a last will and testament, a trust or trusts, financial power of attorney, healthcare proxy, a living will, and beneficiary designations. By ensuring that these are up to date, you can dictate how you want your medical care to be handled if you become incapable of making these decisions, how your loved ones will be taken care of in the event of your passing, and how your assets will be transferred.
- Guarding Against Scams. Scammers prey on the vulnerability of people with Alzheimer’s. Financial advisors can help protect against these risks by educating you about potential threats and implementing safeguards, such as setting up alerts for unusual activity on your accounts and monitoring for fraud or suspicious behavior.
When you are dealing with a diagnosis of Alzheimer’s disease, it is now more important than ever to be sure that your advisor is doing everything they can to help you, and your family, successfully manage your financial situation during this time of uncertainty. You want to enlist the help of a caring financial professional who understands this disease and has the experience of guiding families through the steps they can take to prepare for whatever may come next. You want to have the reassurance that you do not have to figure this out all on your own. A financial advisor who is a fiduciary is legally obligated to act in your best interest and can help you to understand all of your options. Not all financial advisors are fiduciaries, but Frisch Financial Group is. If you would like more information about how we can help you, please contact us.
