Mismanaging money and poor judgment are two of the early warning signs of dementia. If someone begins experiencing memory loss, you may subsequently discover unpaid bills, impulsive online purchases, and numerous other financial disasters.
Five simple financial planning steps can help you prepare for the future:
Be proactive and plan ahead
Understand the prevalence of the disease and take steps to ensure your loved one’s finances are protected before you – or a loved one – are affected by the illness. It’s best to understand how you’re going to handle the costs of care. This is key to planning for the future.
Get others involved in planning
A spouse, an adult child, or another trusted family member or friend should also attend meetings with financial advisors to stay “in the loop”.
Discuss long-term care insurance options
Part of the financial planning process includes looking at options for long-term-care coverage. Unlike traditional health insurance, it’s designed to cover long-term services.
- Create a Living Will and Appoint Powers of Attorney
- Estate planning, which incorporates living wills and powers of attorney, is one of the core topics of financial planning.
- A living will is a written, legal document that spells out medical treatments you would and would not want to be used to keep you alive, as well as other decisions such as pain management or organ donation.You should address several possible end-of-life care decisions in your living will, including:
- Mechanical ventilation
- Tube feeding and dialysis
- Powers of Attorney
- A POA is a type of advance directive in which you name a person to make decisions for you when you are unable to do so. This person may be your spouse, other family members, or a friend.
- Know your assets, and share their details with a trusted confidant
- Make sure to discuss with at least one person where all your financial assets are. This will ensure that your finances are protected in the future.