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Finances and Dementia
Old 01-17-2007, 12:14 PM   #1
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Finances and Dementia

It has been estimated that 6% of those aged 75-79 and 45% of those aged 95 or older suffer from dementia. This means that at a 4% SWR there is probably a greater chance of suffering from dementia than running out of money. What are you doing to ensure your finances are maintained once/if you loose your mind?

I would hate to lose all my assets to a quick talking salesman when I am 80. Unfortuntely, this happens.
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Re: Finances and Dementia
Old 01-17-2007, 12:42 PM   #2
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Re: Finances and Dementia

Better buy that annuity at 79.
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Re: Finances and Dementia
Old 01-17-2007, 12:45 PM   #3
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Re: Finances and Dementia

Quote:
Originally Posted by rmark
Better buy that annuity at 79.
Actually, that was the first thing that occurred to me. However, I suspect that at that time I will not need all the money that annuitizing would provide.
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Re: Finances and Dementia
Old 01-17-2007, 12:46 PM   #4
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Re: Finances and Dementia

We actually had a co-worker who was suffering from the early onset of dementia, and my workplace kept him employed until he could get a pension, so he would have at least some secure income. My wife did a little computer support for him at his home, so we were able to check up on his living condidtions until it progressed too far.
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Re: Finances and Dementia
Old 01-17-2007, 12:52 PM   #5
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Re: Finances and Dementia

according to the alzheimer's association "The likelihood of developing late-onset Alzheimer’s approximately doubles every five years after age 65. By age 85, the risk reaches nearly 50 percent."

i'm not at all concerned with my finances if i see myself slipping into dementia. i've already taken out an excellent annuity plan through the bank of smith & wesson na.
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Re: Finances and Dementia
Old 01-17-2007, 12:56 PM   #6
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Re: Finances and Dementia

I had a great uncle who in his mid/late 80's would check himself out of the nursing home to run the local small town poolhall while the owner left on vacation. He was at the nursing home because his own home was too far out in the countryside, and he figured they would keep an eye on him. He lived into his mid 90's.
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Re: Finances and Dementia
Old 01-17-2007, 01:21 PM   #7
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Re: Finances and Dementia

Quote:
excellent annuity plan through the bank of smith & wesson na.
What rate are they currently paying? .357?
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Re: Finances and Dementia
Old 01-17-2007, 01:42 PM   #8
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Re: Finances and Dementia

Quote:
Better buy that annuity at 79.
Just don't buy it from a quick-talking salesman.
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Re: Finances and Dementia
Old 01-17-2007, 01:44 PM   #9
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Re: Finances and Dementia

Quote:
Originally Posted by rmark
Better buy that annuity at 79.
How would you remember you had one??
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Re: Finances and Dementia
Old 01-17-2007, 01:46 PM   #10
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Re: Finances and Dementia

Quote:
Originally Posted by FinanceDude
How would you remember you had one??
Dementia usually has fairly slow progress; the trick is not to wait too long.
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Re: Finances and Dementia
Old 01-17-2007, 01:55 PM   #11
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Re: Finances and Dementia

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the trick is not to wait too long.
Kinda sounds like market timing doesn't it?
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Re: Finances and Dementia
Old 01-17-2007, 02:18 PM   #12
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Re: Finances and Dementia

My Mom suffered from alzheimers so I know what it can do. DW and I have both given our son durable power of attorney and health care power of attorney. Long before I would reach the point of being susceptible to a financial scam I would turn over responsibility for my financial affairs to my son. This is what my parents did with me and it worked well.

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Re: Finances and Dementia
Old 01-17-2007, 02:59 PM   #13
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Re: Finances and Dementia

Quote:
Originally Posted by grumpy
My Mom suffered from alzheimers so I know what it can do. DW and I have both given our son durable power of attorney and health care power of attorney. Long before I would reach the point of being susceptible to a financial scam I would turn over responsibility for my financial affairs to my son. This is what my parents did with me and it worked well.
I think this is what most people are depending on. However, I have personally seen several and heard of many other cases where the senior does not realize they are no longer capable of taking care of the finances, and does not turn over control. I think this is the crux of the problem.
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Re: Finances and Dementia
Old 01-17-2007, 03:23 PM   #14
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Re: Finances and Dementia

Quote:
Originally Posted by mickeyd
What rate are they currently paying? .357?
damn, i should have thought of that. good catch.

Quote:
Originally Posted by mickeyd
Kinda sounds like market timing doesn't it?
it's less market timing and more window of opportunity.

Quote:
Originally Posted by grumpy
Long before I would reach the point of being susceptible to a financial scam I would turn over responsibility for my financial affairs to my son.
what bbuzzard said, also problem with poa is they are revokable. so you might turn over control while you are in control but then revoke it when you are out of control. paranoia often accompanies dementia. to keep yourself safe you might consider discussing with your children the possible need to have you declared incompetent by the state and have the children become your guardian at that point.

discussing this with them now will lessen their guilt, if need be, later.
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Re: Finances and Dementia
Old 01-17-2007, 03:34 PM   #15
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Re: Finances and Dementia

We are going through this with MIL. Noticed the on set '97. She almost bought an annuity form slick salesman in '02. DW said after getting it squared away "Mom your're coming to live with us". She lived with us until Sept last year when her needs exceeded our ability to care for her. Fortunately when we moved her up here she was lucid enough to sign a POA putting DW in charge of her holdings.They are presently structured to deliver 90% -110% of the present cost of her full time care in an assisted living center for dementia patients.

Both DW and I now have POA's and living wills to help with the decision making issues. All of the issues have been discussed with both sons and they have copies of all paper work.

DW says she'll take pills and booze if she finds out that she has dementia. Me I'll probably opt for Mr. Colt 45.
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Re: Finances and Dementia
Old 01-17-2007, 03:45 PM   #16
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Re: Finances and Dementia

My mom is in the situation. My sis has to keep a close eye everything. A day trader and his bank office GF talked my mom into an annuity. My sis made sure that will not happen again.

It's a bit of a nightmare. When my 85 year old grandpa died he had a bunch of annuities a S&L talked him into.
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Re: Finances and Dementia
Old 01-17-2007, 03:45 PM   #17
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Re: Finances and Dementia

People have a hard time talking about finances and death. I think if you start early sharing with your significant others what you want the less hard it will be to turn over control later. My father always shared with his kids everything about his situation, both regarding his health and his finances, such as they were. It made it much easier to address problems even when we were young. It just was a matter of fact part of life, rather than a big mystery.

In contrast, DH's father was much more private and it made it hard to both get a handle on his health status as well as his finances.

Our issue is that we have no kids and no responsible younger relatives. We do have a set of close friends who hold a POA for us and are our personal representatives/trustees under our will and trust. We have provided them "in case something happens to us" instructions. We will see if any adjustments have to made as time goes on. I worry somewhat that one or the other of us may be vulnerable to irresponsible nieces or nephews. My nightmare is that the survivor of us becomes incompetent and a niece or nephew robs us blind.



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Re: Finances and Dementia
Old 01-17-2007, 04:05 PM   #18
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Re: Finances and Dementia

This is an excellent thread and while difficult to think about this kind of stuff one should. Like most things involving aging it is also better to plan long before the problem shows up.

If you have kids you can depend on your blessed. Talk to them early and often about your affairs, what you want and put as much of that in writing as you can to act as a guide for them.

If you don’t have kids you can count on, which is our situation, then you have to find alternatives. We of course have the POA for financial and medical and HIPPA statements for each other so that we can handle each other’s affairs when the other is incapacitated. That is assuming that one remains intact while the other does not. But what happens if we both suffer dementia at the same time or if the one who is intact dies before the one with dementia.

Luckily there are things you can do in situations like this. There are Case Managers (Social Workers) who can work with you to oversee your care. There are also Elder Care programs to assist you with aging in place (at home) and that will act in your interest so that you get the care that you need when you can no longer take care of your self. These are not always easy to find and vary from state to state so the sooner you start looking the better.

The way DH and I looked at it planning for this contingency was part of our over all financial plan and just as important as where and whit whom we invested our money.

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Re: Finances and Dementia
Old 01-17-2007, 04:13 PM   #19
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Re: Finances and Dementia

Quote:
Originally Posted by Martha
People have a hard time talking about finances and death. I think if you start early sharing with your significant others what you want the less hard it will be to turn over control later. ...
Agree. Been there done that and have the T shirt to prove it.
DW #2 did not want to talk about finances other than to check balances in the various accounts a few times a year to make sure I was "doing my job". Likewise, she did not want to talk about her last wishes. This made it very difficult to plan a funeral when the unthinkable happened.

As painful as it might seem, start talking with your spouse or SO about the "what if..." questions and then make a plan to address them. Get your financial house in order and keep it up to date. Wills, trusts, Healthcare POAs and other related docuements become invaluable when the are needed. I have used them and it made many things not only easier but do-able where I had control of heathcare decisions rather than a state or a court.

Finances are sometimes very difficult for parents to discuss. My father never talked about his finances. It was not until after he died that we understood what he had and where it was so we could help my mother pay the bills. She is much more open as she would much rather hand it all over to us rather than have to do it herself.

Having said all this, I have not been as open with my own kids on our financial situation. I have everything written down but I believe my kids are too inexperienced and too distracted with being young adults to really understand the ramifications of what they could inherit were we both to die suddenly. Someday they will be told, but not yet. Besides, if they don't call me a little more often I might just write them out of the will.
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Re: Finances and Dementia
Old 01-17-2007, 04:19 PM   #20
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Re: Finances and Dementia

Quote:
Originally Posted by Martha
My nightmare is that the survivor of us becomes incompetent and a niece or nephew robs us blind.
in florida, which once ran rampant with such fleecing, once the elder person is declared incompetent, guardianship is appointed and assets are gathered and held in state protected guardianship accounts. every significant expense comes under state scrutiny, with all withdrawals of large sums requiring court order. yearly audits are conducted by the county. also the county checks yearly on the health & status of the ward.
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