Prompted to start this thread by a column by Christine Benz on the Morningstar site today (How to Safeguard Finances Against Cognitive Decline) along with the Am I Old yet thread here on the ER board.
The column points out that one of 10 for men and 5 out 10 women will suffer dementia, and for the over 85 age group, 50%.
The column's premise is to explore what you can do in advance to protect your financial assets. Besides the standard POA and Health Directives, there is the vital issue of timing and who should get the authority. One of the "imponderables was rather to have a trigger event for the POA or leaving it open so it could be used immediately should there be a need.
Apparently complicating this decision is that HIPPA rules might prevent a physician providing the authorizing approval (if the trigger was a competency requirement) if they did not have on file the necessary approvals from you to release your health records.
In the article's comments section (some good stuff there), one poster mentioned that they were in their early 60's when they had the first of regular session with their children to discuss finances and the role the children could/would play. They now provide regular updates to their children and an annual review.
We have an "only" who has shown good awareness so far but is a long ways from having complete working knowledge of ETF's, MF, etc and the alternatives. Her hubby is solid and well above average in brain power (software engineer) but again has a multitude of other interests besides finance. We are both 66 and in good health. DW's has longevity in her family but as often said she does not care for the whys and wherefores of portfolio management. We have been thinking the perhaps when we were 75 we would have this conversation but now wonder if it should be sooner.
Question for the Board is how many of you have had this type of conversation with your child(ren) and at what age were you when you pulled back the curtains on your personal finances? How often do you discuss your financial issues and expectations with them ?
Thoughts and experiences are much appreciated.
Nwsteve
The column points out that one of 10 for men and 5 out 10 women will suffer dementia, and for the over 85 age group, 50%.
The column's premise is to explore what you can do in advance to protect your financial assets. Besides the standard POA and Health Directives, there is the vital issue of timing and who should get the authority. One of the "imponderables was rather to have a trigger event for the POA or leaving it open so it could be used immediately should there be a need.
Apparently complicating this decision is that HIPPA rules might prevent a physician providing the authorizing approval (if the trigger was a competency requirement) if they did not have on file the necessary approvals from you to release your health records.
In the article's comments section (some good stuff there), one poster mentioned that they were in their early 60's when they had the first of regular session with their children to discuss finances and the role the children could/would play. They now provide regular updates to their children and an annual review.
We have an "only" who has shown good awareness so far but is a long ways from having complete working knowledge of ETF's, MF, etc and the alternatives. Her hubby is solid and well above average in brain power (software engineer) but again has a multitude of other interests besides finance. We are both 66 and in good health. DW's has longevity in her family but as often said she does not care for the whys and wherefores of portfolio management. We have been thinking the perhaps when we were 75 we would have this conversation but now wonder if it should be sooner.
Question for the Board is how many of you have had this type of conversation with your child(ren) and at what age were you when you pulled back the curtains on your personal finances? How often do you discuss your financial issues and expectations with them ?
Thoughts and experiences are much appreciated.
Nwsteve