Memory loss is a normal part of aging. But
for some seniors who aren't aware of their memory loss
, that aging process is costing them thousands of dollars
. New research found those who are unaware of their
severe cognitive decline lost an average of$31,000 over a
two year period. The University of Michigan Health and
Retirement study found some of those losses could be from
scams and seniors are more likely to be victims,
but a large percentage were from bad investments in the
stock market. So let's compare some numbers. As
I mentioned, seniors in the study who were unaware
of their severe memory loss saw their wealth declined by
an average of$31,000 over two years. You compare
that to those who were aware, never experienced cognitive
decline, their wealth dropped an average of$5400 over
the same period. Researchers say that suggests that seniors
were spending down their assets versus losing money on bad
investments. Thomas Van, as the third joins the
conversation, he's an asset protection and a state planning
attorney and also the founding partner at Van Law Thomas
. Thanks for being here. This study shows 77%
of seniors. I don't know that they experience memory
loss. So how does this play a role ultimately
in their financial decisions? It, it plays a
role because it affects their ability to comprehend information.
What I see in my practice is I see as
we age, we lose the ability to make good
decisions in the stock market and, uh, spending
habits making us susceptible to manipulation by third parties.
Well, this study also found severe memory loss can
occur well before retirement, but typically happens around age
67. So what steps do you recommend to people
at your practice to really take, uh, to
ensure financial security? In any case? I recommend
people get a power of attorney and a trust making
a trusted person a lot of times a child,
a co trustee or a power of attorney so that
they can manage the accounts, take care of paying
bills and things like that. What are the,
the patterns that a loved one can look at that
can signal that they are dealing with, with an
issue of someone who is potentially dealing with cognitive decline
and it's impacting their wealth. The one that I
see a lot is people repeating themselves. If your
, you know, parent tells you the same story
three times within, you know, a weekend hanging
out with them, you probably have an issue and
you probably need to start paying attention to their bank
account statements to see at all, another one would
be if they're talking to, people heard of,
there's a new friend in their life that over,
you know, their 80 year life they've never mentioned
to you. And then that person starts playing a
larger role. You have to be careful who befriends
your parents and your loved ones towards the end of
their life. Uh, because you don't know their
in and a lot of times it's the next door
neighbor. Sometimes it's homemade s, it's, it's
really common that towards the end of our lives,
people come in and try to befriend us, hoping
not only just to make it in the will,
uh, but potentially to take advantage of the situation
during their lifetime. How do you have that conversation
about money? If you suspect that one of your
loved ones is experiencing, experiencing memory loss? I
think it's, uh, uh, almost a pleasant
conversation to have, hey, mom, dad,
you know, you don't need to manage your finances
anymore. You don't need to worry about that and
have that stress. I'm gonna take over as power
of attorney or as trustee of your trust and I'm
gonna pay all your bills for you from your account
so that you don't have to worry about this.
Ok. So you're saying, take a more positive
spin. But, you know, sometimes, and
we've, I've had reporting around this where it's,
it's not that easy of a conversation. There's this
sense of losing you know, autonomy over their,
their lives. So, is there resources or,
or groups that maybe can help facilitate that conversation?
So, it feels like a game plan together rather
than I'm just taking it off your hands and,
and, you know, you're on, I'm just
doing everything. Yeah. I think you have to
have good professional. I hear it from an experienced
professional that deals with it all the time that,
that their position in life is doing. I think
it's more trusted than maybe a child who, you
know, towards the end of parents' lifetime, maybe
they think the child has or, you know,
they don't want to give up control to your point
. I do see that quite a bit in my
practice. Um, but I think by spinning in
a positive light, uh, you have a better
shot than trying to, you know, have a
come to Jesus moment if you will and gathering the
entire family around at the holiday time and trying to
, um, talk sensitive mom or dad because I
think that makes it a bigger ordeal and sometimes,
uh, they're very resistant. Yeah. And,
and, and hopefully having these conversations, um,
sooner, even though that can feel kind of weird
sometimes when, but not waiting until the point like
you said, where you have to have big conversations
when it's a little too late. All right,
Thomas Vandas, the third Asset Protection and the State
Planning Attorney. Thank you so much for your time
and your insight. We appreciate it. Thank you --> .