My wife worries that if I die, she has no one to turn to for financial advice. She has no interest in learning to manage our portfolio herself, although we try to review everything periodically.
This sounds similar to my situation but we are starting to get up there in age already. DW is a retired attorney and could easily manage the portfolio but isn't interested. I go over everything with her every year or so and have a detailed document outlining actions on death. She dragged our son over to go over everything so he can be a second set of eyes or take over completely if she (or both of us) become addled. DD is also clued in and shares responsibility with DS in the POAs but she prefers that he take the lead on financial issues.Similar situation here. DW has no interest in the managing aspect, so I have to just about drag her to the keyboard a couple of times a year to re-familiarize her with what's going on.
Her response, which is correct, is that she's a smart person who will be able to pick it up quickly if necessary, and in the meantime she trusts me to do what's right. Can't argue with that (she's smarter than I am) so I'm content with it.
As we age, things may look different than they do today, and in that case I've recommended that she turn it over to Fidelity or Schwab (we have accounts at both). With our pensions and SS income, it's pretty much just for discretionary spending anyway.
I've often heard people say that they have given the username and password to their accounts to their loved ones in case the pass away, but I wonder how useful that is?
First of all, it is illegal for someone to pretend to be you and use your account credentials to take any action as you after you are dead. And yes that applies to your beneficiaries, and yes that applies to someone with a durable power of attorney because the power of attorney dies when you die.
Second, as soon as your account providers find out that you are dead they are going to freeze your account so those account credentials won't be any good anymore.
I suppose your heirs could use the account credentials to log in and see the account information without taking any action before they notify the account holders (and assuming the account provider does not find out that you are dead from another source) and that may be beneficial, but you could accomplish the same thing simply by giving your heirs the contact information for the account provider and making sure they know your SSN and birthday and have a general idea of what accounts are with which provider. I think that's all they need anyway.
I think it's kosher for you to access the owner's accounts if you have a POA so long as they are alive, I was referring to accessing accounts after the owner passes.I have accessed online accounts for which I am a POA using the owner's credentials... perhaps not totally kosher, but it works and much easier than presenting the POA to the service provider and having them grant me online access based on the POA.
Fair point. I was referring to accessing the owner's accounts after the owner passes.Sometimes we are incapacitated and unable to make our own decisions. Someone you trust should have a POA and access to your accounts.
I spend my investment returns on travel and women. The rest I waste.
I am the financial person in our house. I have known women to take over when their husbands got sick and did well. I am surprised about the number of women not interested.
... Her bigger challenge with not be dealing with the investments. It will be some of her "shady" relatives who have backed off due to my presence. They may come around after I am gone looking for her to finance their desires, and she has a harder time being forceful than I do.
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I really am quite surprised at the amount of women not interested according to this thread.
My mom had dementia of which she was completely unaware. One of the first screwy things she did was ignoring any bill that came in the door. In fact she just stopped opening any mail. She had many bills on autopay but didn't remember to transfer into the checking account that paid those bills. Prior to that she was a wizard with money and balancing her checkbook even at age 97. Then something broke. So yeah...we don't know how it will go for any of us.That’s exactly what I would be worried about. Fortunately DH is a DIYer, even though I manage all the investments. He’s generally familiar enough with our holdings and my investment approach.
I’m working hard to simplify investments for both of us as we age. My concern is more about when I am 75, 80. And who do I get to do billpaying? No children.
Question Are Alzheimer disease and related dementias (ADRD) associated with adverse financial outcomes in the years before and after diagnosis?
Findings In this cohort study of 81 364 Medicare beneficiaries living in single-person households, those with ADRD were more likely to miss bill payments up to 6 years prior to diagnosis and started to develop subprime credit scores 2.5 years prior to diagnosis compared with those never diagnosed. These negative financial outcomes persisted after ADRD diagnosis, accounted for 10% to 15% of missed payments in our sample, and were more prevalent in census tracts with less college education.