Financial well-being is of highest concern for an aging Baby Boomer generation. In addition to having to deal with declining health, Boomers also have to consider the possibility of diminishing mental acuity which can greatly impact their capacities to make sound financial decisions that impact the quality of their post retirement lives.
While reliable home care systems or home care software enable and support senior independence, the ability for making informed financial decisions can start deteriorating as early as the mid-50s, says a recent University of California- Los Angeles study. Living a thriving post- retirement life is increasingly tied to long-term financial planning.
Mild Cognitive Impairment, MCI, also known as incipient dementia or isolated memory impairment, currently affects 20% of Americans aged 70 and older reports the American College of Physicians. Though it is considered much less serious than dementia, MCI is a serious concern because of “the likelihood that you’ll still be behind the wheel of your financial life” long past the time when it is in your best interest to be so, says David Laibson a Harvard University professor of economics.
A 2011 MetLife Mature Market Institute study provides a very scary statistic: older Americans are losing an estimated $2.9 billion a year to financial abuse! Given that many older Americans are unlikely to report fraud because they may not recognize a scam or be too embarrassed to tell anyone, financial exploitation is considered even higher. Combined with quality home care systems or home care software, trustworthy financial management provides transparency in situations where information is systematically noted and can be immediately accessed.
Do you have a financial plan for aging successfully? It is important to make informed decisions now for times when you may not be able to continue to do so.
Here are some best practices for ensuring your long term financial wellness:
Develop a network of support: Know whom you can entrust your finances and personal care taking to. Many financial planning firms are offering elder-life advisors to best support aging clients. Home care software or home care systems, like ClearCare, provide a convenient way to help manage your own care management. Such web-based home care systems and home care software allow family members to stay informed about their loved ones.
Prepare your documents: Write out and share your financial goals and desires as well as your medical directives so in case of impairment, your designated proxy’s decisions are informed by and aligned with your stated interests. Coordination and communication, as simplified by comprehensive home care software or home care systems, are as vital for financial management as it is for quality care. By designating a power of attorney document (POA), you grant a trusted party authority to act on your behalf.
Simplify your investments: Delegate control or change your portfolio by changing individual stocks, non-publicly traded investments, and related partnerships to less complicated options
With these tips, every senior can successfully manage his financial future.