Debate: What is the role of financial advisors and platforms in detecting and addressing cognitive decline among older clients?

Baby Boomers’ Biggest Financial Risk: Cognitive Decline (The Wall Street Journal):

For baby boomers who manage their own nest eggs, a risk is looming that has nothing to do with stock prices or interest rates.

The risk is cognitive decline, which can rob them of their judgment, often without much warning. One big mistake—or a series of smaller ones—can go unnoticed by loved ones, and potentially ravage a lifetime of hard-earned savings.

To mitigate these risks, there are things baby boomers and others can do now to prepare for any problems. In addition, big do-it-yourself investing and trading venues like Vanguard Group, Fidelity Investments and Charles Schwab Corp. are strengthening some of the ways they detect possible signs of decline. Among other things, all three firms check for clients’ difficulty navigating security protocols or need for frequent password resets. In such cases, a designated family member might be informed.

Vanguard also checks client-call recordings for keywords—such as “confused” and “dementia”—that might signal trouble. Keep reading important article HERE, over at The Wall Street Journal

Recent research brief:

Cognitive Aging and the Capacity to Manage Money (Center for Retirement Research at Boston College)

The brief’s key findings are:

  • Most people in their 70s and 80s can still manage their money, as financial capacity relies on accumulated knowledge, which largely stays intact with age.
  • However, financial novices who lack such knowledge and are forced to take over money management after a spouse dies will likely need help.
  • And individuals who develop a cognitive impairment may see a substantial reduction in their financial capacity and need someone to step in for them.
  • Given that this impaired group will grow to more than a third of individuals who reach their 80s, better monitoring of financial capacity will be essential.

News in Context:

  • Should financial advisors help detect and address their clients’ cognitive decline? If so, how?
  • Reports highlight need for cognitive health innovation given aging global population
  • Solving the Brain Fitness Puzzle Is the Key to Self-Empowered Aging
  • Brain scans show lower accumulation of tau and amyloid pathology among cognitive “super-agers”
  • What are cognitive abilities and how to boost them?
  • Eight Tips To Remember What You Read

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