Preparing a Strategic Plan
by Anthony J. Curatolo
Two years ago I began working with noted psychologist Dr. Bill Beckwith who specializes in memory management for individuals affected with mild memory loss and dementia. During the course of our collaboration, I became aware of how a decline in memory such as mild cognitive impairment or Alzheimer disease affects not only the forgetful person but also the family as a whole.
Try to imagine the impact on family members when, what took a few minutes and little thought, such as reconciling your checking account, now takes hours and can possibly be riddled with numerous errors. If the decline becomes severe, think of what stress it would be if your parent, husband, wife or sibling did not recognize you. If would be a truly sad and empty experience.
Memory loss may come on suddenly, as in the case of a head injury, stroke, medication side effects, etc., or it may come on gradually and progressively as in the case of Alzheimer’s disease. The good news about slow onset memory loss changes is that you can be proactive in maintaining your quality of life. Just as in managing finances, managing memory loss early may improve outcome.
Through Dr. Beckwith, I learned that dementia can be misdiagnosed or made worse by loss of hearing, severe depression, medication side effects, or sleep apnea. The key is to identify a baseline and monitor short term memory just as you do blood pressure or blood sugars. To date, there are no medical or vitamin cures to prevent dementia, but one can slow the process with exercise, a healthy diet and social activities. In fact, Medicare covers memory evaluation through approved providers.
It is important to distinguish the difference between natural aging and progressive memory loss. For example, it’s normal to forget your keys or where you park your car, but it’s not normal to forget that you own a car.
How does the caretaker cope with a loved one‘s progressive memory loss? How does one better cope with a progressive chronic disease? Dr. Beckwith recommends the solution to managing your memory is to know how your memory works and then create a strategic plan for your future, rather than waiting until the memory loss is serious and detrimental. Realize that your daily calendar is your best tool. It allows you to control not only what you have to do but also what you love to do. Remember the one minute rule “anything given less than one minute of thought will fade from your memory” to quote Dr. Beckwith.
How does this relate to financial planning? It’s advised to develop a documented plan for a good life, no matter what circumstances may present themselves along the way. We suggest a Plan for a Lifetime report to assist you and your loved ones in helping you maintain a good life. This report should include:
- Account numbers of all investments and their values, along with company phone numbers and possible online credentials
- List of how assets are titled and taxed
- List of all insurance contracts inforce, along with company phone numbers
- Identify who the beneficiaries are
- Identify who will manage the assets if you are unable
- Identify who will be the executor and do they know the responsibilities that come with the position
- Identify who will be your care provider, if necessary
- List of trusted advisors (accountant, attorney, etc.) and their contact information
- Funeral and legacy arrangements
- Best friend or spiritual advisor
This report should also include a flow chart mapping how money is to be distributed to loved ones and a budget for your surviving spouse so there is continuity in their lifestyle.
A methodical and thoroughly thought out plan ensures your money is passed to family members as you desire. This flow chart is particularly important when divorce, step-children and or ex-spouses are involved.
Money has a habit of evaporating with poor communications, especially when health issues or second marriage families play into the scenario. The wall we must overcome is the “Code of Secrecy” which is more common than not. Unfortunately, many families do not share money behavior patterns among members, which can lead to chaos and confusion during a period of crisis. What is critically important is working with a trusted financial advisory team to develop a transparent and strategic document so that those who survive you are well aware of the financial and legacy plan you have worked to put in place. Engaging a loved one in your financial management responsibilities and on the building of this life-long plan is an important aspect of the process.
Don’t ignore this process. Involve members of your family; most importantly your spouse. Talk with your advisor and review all documents and plans. Have your accountant and attorney engaged in the process and have all trusted advisors on the same page in regards to major decision making issues.
Dementia /Alzheimer’s are more feared than death. Losing your memory does not mean that you must lose your best friends and family members. Communication and transparency are paramount to reducing anxiety, family disappointments and legal fees in the face of an uncertain future.
It is a good idea to constantly build and communicate to all trusted parties. You may even consider making a short video of your life to include your best lessons to pass along to the next generation and in which you can share your philosophy of financial and wealth management.
Begin preparing your Strategic Plan for a Lifetime today, while you have the capability. Should there ever be a period of crisis and you do not have the ability to perform or make the decisions you do today, you may find that this plan will be of great value to you and your loved ones.
