Who will manage your finances once you are no longer able ?

[yakers]

Recentlu transfered half my portfolio to Schwab as I think they will be of some use helping DW if I depart first. May put everything there.

 

[DrRoy]

My FIL is 93 and still quite able to handle the $. If I thought I had a problem, I know of several fee only FA's in the area. DW was once a bank teller and is capable. My son's are also a possibility, but they really have no experience in large sum $ management.

 

[Teacher Terry]

2 of my 3 sons can handle everything and I have a death book with everything written down. I also have most bills paid automatically. People in my family have been able to manage their own finances until death so hopefully I will be the same.

 

[kcowan]

I have our retirement fund with a paid advisor and the rest my own. The difference in return is basically their fees this year. I consider that acceptable as an alternative when I am gone.

Oldest son is an alternative but lives 2000 miles away!

 

[brett]

I have our retirement fund with a paid advisor and the rest my own. The difference in return is basically their fees this year. I consider that acceptable as an alternative when I am gone.

Oldest son is an alternative but lives 2000 miles away!

Doing the essentially the same.

I suspect the challenge for some is to take the time to find a good, reputable advisor. Lots of duds out there.

 

[PatrickA5]

I have a very detailed book with just about every imaginable financial detail down to who mows our lawn and how to pay him. I update it every year and DW reviews it. Our son is secondary POA agent and will take over when I'm gone and DW needs help.

Also, we have an advisor at Fidelity that we've met with a few times, just in case DW wants to talk to someone in person. I've given her all of the proper "warnings" as to not let him talk her into something complex/expensive.

I've simplified big time over the last few years. Down to one investment firm (Fidelity). All IRAs are in the same Target Retirement Fund. Taxable is down to 2 funds. One outside B&M bank where all bills are auto paid from.

Only items still needing simplification are credit cards. I'll try to get those down to just a couple over the next year.

DW (and son) should easily be able to handle our finances when I'm gone.

 

[RobLJ]

When I went 3 weeks ago to Ft. worth/Dallas after my 91 year old mother's hip replacement, I was shook to realize that my sister (2 years older) was exhibiting clear symptoms of cognitive/memory decline. I knew she was declining, but it was a slap in the face.
I've been doing a book in case I croak for my wife, and both of my two sons could probably take over, but I am trying to grossly over-simplify our investments over the next 2 or 3 years. I assume I would realize when I'm losing 15 mph off the fastball, but given my sister, I'm no longer convinced that would be the case.
This is a good thread; I bookmarked it and will go back over all of the comments.
I thank the forum for items like this. It worries me.

 

[mickeyd]

I’ve been thinking a lot about this lately, watching friends and family try to figure this out.
Some people seem willing, but are not capable. Other people are capable, but not willing.

I ask this question especially in the context of having a spouse who has no real desire or interest in financial self management.

If there is a thread related to this topic, please let me know.

Thanks !

Excellent topic.

I am nearly 80 and DW is about 4 years behind. I am the main financial cog in our successful retirement plan (not to brag). DW has taken little interest in our financial situation until a few years ago. She has recently taken more and more interest in filing income tax, understands how RMD works and how to make sure that it gets done, and has begun to take more interest in our annual review of how to manage our stash.
If I become unable to attend to our financial needs she understands that the burden will fall with her. So there's that...

 

[mickeyd]

BTW I just noticed that I have been on board here for 20 years...WOW!

 

[skyking1]

It's not that complicated. Each time I can, I move to simplify things toward that end.

 

[Lsbcal]

At what age do you think you will start going downhill cognitively?

Personally at 76 I cannot imagine having that problem. But I've told DW that if I am no longer alive to just take all the assets at Vanguard and have them set up a sensible portfolio. She will have more then enough to live comfortably. I have some written instructions too.

 

[TheWizard]

I'm not sure I'll ever NOT be able to manage my finances while I'm still alive. Warren Buffett probably still manages his and Charlie Munger likely did also, until his demise.
So I'll focus instead on what happens after I'm gone...

 

[RetiredHappy]

I'm not sure I'll ever NOT be able to manage my finances while I'm still alive. Warren Buffett probably still manages his and Charlie Munger likely did also, until his demise.
So I'll focus instead on what happens after I'm gone...

I am with you but we all need to be aware that dementia and other mental capacity type disease can hit any of us. I do hope if it happens, that I recognize early signs of mental decline and be able to "hand off" financial matters to my son or a financial institution/brokerage/trustee to manage.

 

[aja8888]

At what age do you think you will start going downhill cognitively?

Good question for a new thread topic!

 

[brett]

Investment adisor, legal, accounting all done with current contacts listed.

I handle all the finances. The audit trail is very simple. Just go through one month of our current account. It shows all auto pays and all credit card balance payments. Home and car insurance docs in the file.

Very simple financial life.

No mystery whatsoever other than don't forget to contact my DB pension provider.

 

[Lsbcal]

Good question for a new thread topic!

I started a poll on this.

 

[aja8888]

I started a poll on this.

Great!

 

[braumeister]

I'm not sure I'll ever NOT be able to manage my finances while I'm still alive.

My mother was a highly intelligent woman and still quite capable of handling finances. But when she got to her 90s, she just lost interest in it and handed it all over to me. She could easily have done it all, but simply didn't want to any more.
So that's another consideration: besides "Can I?" we have to consider "Will I want to?".

 

[kcowan]

MIL let me take over from her FA and I simplified the reporting and also did her taxes for 5 years. but that was 20 years ago! Saved her $20k each year with no change in IPS.

 

[marko]

DW is interested and capable. Six years younger than me. I'm 72.

Right now, things are moderately complex but mostly on autopilot. I'd imagine that as time goes on we might simplify things, be a lot less aggressive to make things easier. She's taken more of an interest over the past year.

We also have an accountant who can step in. Taxes and such have her buffalo'd. If we're both a mess we have a niece who's extremely competent.

 

[BarbWire]

I’ve been thinking for a while about how to put together a “geezer team.” I am solo, have no kids and no heirs. [Thus prime picking for con artists so very few people have that information; I say my family is scattered…]. My MPoA is with my closest friend who alas is 10 years older than I. DPOA is with a trust company that my (now retired) lawyer in my previous state works with. I manage all of my finances, investments and do my taxes.

Thinking about what I did for my parents (DD had >95% of his marbles when he died at 92, but mom had Alzheimer’s and died at 87) : I worked with my dad on their finances for three years (he was an astute investor) and then managed all their finances/lives for two years including managing all healthcare, mom’s nursing home care, long term care insurance claims, and was executor of both estates.

There is a LOT involved in aging and dying. It is eye-opening. I had no idea.

I have moved states so will need to update all of my estate documents. When I need help managing my day-to-day money — or someone has to do that for me — I need to set up a way that two people have to approve expenditures and no one can clean out my accounts. I will need someone to do my taxes, who might also be the second sign-off on expenditure….a CPA who is closely associated with my new estate lawyer? As a solo with a family history of dementia will I also need an eldercare lawyer onboard in case my non -estate interests need to be protected?

I have just moved half my investments from VG to Schwab and set up a relationship with a VP-level customer service person, who has a FA on her team. I still manage all of my investments but will begin conversations with them next year about taking a more active role, though my portfolios are couch-potato. SS begins in 3 years and RMDs two years after that.

So how do you put together a team-for-hire with enough checks and balances that no-one can clear out your assets, or get themselves declared your (predatory) guardian? And who —maybe — even tries to do the right things for you personally and financially?

 

[aja8888]

I’ve been thinking for a while about how to put together a “geezer team.” I am solo, have no kids and no heirs. [Thus prime picking for con artists so very few people have that information; I say my family is scattered…]. My MPoA is with my closest friend who alas is 10 years older than I. DPOA is with a trust company that my (now retired) lawyer in my previous state works with. I manage all of my finances, investments and do my taxes.

Thinking about what I did for my parents (DD had >95% of his marbles when he died at 92, but mom had Alzheimer’s and died at 87) : I worked with my dad on their finances for three years (he was an astute investor) and then managed all their finances/lives for two years including managing all healthcare, mom’s nursing home care, long term care insurance claims, and was executor of both estates.

There is a LOT involved in aging and dying. It is eye-opening. I had no idea.

I have moved states so will need to update all of my estate documents. When I need help managing my day-to-day money — or someone has to do that for me — I need to set up a way that two people have to approve expenditures and no one can clean out my accounts. I will need someone to do my taxes, who might also be the second sign-off on expenditure….a CPA who is closely associated with my new estate lawyer? As a solo with a family history of dementia will I also need an eldercare lawyer onboard in case my non -estate interests need to be protected?

I have just moved half my investments from VG to Schwab and set up a relationship with a VP-level customer service person, who has a FA on her team. I still manage all of my investments but will begin conversations with them next year about taking a more active role, though my portfolios are couch-potato. SS begins in 3 years and RMDs two years after that.

So how do you put together a team-for-hire with enough checks and balances that no-one can clear out your assets, or get themselves declared your (predatory) guardian? And who —maybe — even tries to do the right things for you personally and financially?

Barb, your last paragraph (putting together a team) is a good one. I have no answer but it sounds like you are on the right track so far. Generally, when your time to leave is near, all you want is the pain to stop.

I'm a solo (and 81 years old now) and have one daughter who will get it all and do whatever with it (no grandkids for me to leave money to).

My parents were dead broke and I took care of them to the end. It was easy with no assets to manage on their watch. They died quickly, too. One from alcoholism at 62, and one from renal failure at 83.

 

[Jeffman52]

We have already spoken to our daughter about this. Her job is not just to manage the investment strategy but also to ensure we don't start randomly clearing the account out to send money to Prince Ali Abubu so he can free up the millions we won in some unknown clearing house in the middle east. LOL

 

[Sunset]

Excellent topic.

I am nearly 80 and DW is about 4 years behind. I am the main financial cog in our successful retirement plan (not to brag). DW has taken little interest in our financial situation until a few years ago. She has recently taken more and more interest in filing income tax, understands how RMD works and how to make sure that it gets done, and has begun to take more interest in our annual review of how to manage our stash.
If I become unable to attend to our financial needs she understands that the burden will fall with her. So there's that...

Maybe she has noticed something and realized she needs to get up to speed handling everything...

I've certainly thought how it will be a pain for my DW to handle my crazy tax issues, I'm happy she is buying & selling stock on her accounts.

 

[EastWest Gal]

I have a FA that we're going to let go very soon, as they are doing nothing we cannot do. DH manages the bills with bill pay through the bank, but I can do that too. Many things are on autopay through credit cards that give us cash back or travel points.

Regarding taxes-we use the same CPA firm that we started with in 1999 so that is easy. There is a small business paying the bills on the orchard and keeping track of the capital account, but I have that in a Google spreadsheet shared with partners (my cousins) and I know that one of them can easily take over that very small task-about 2 hours per year.

I've been working with DS regarding learning about investing. DH has knowledge, but has no interest, unfortunately.