Don't Let Age Lose You Money

Hey there Money Saver! Welcome back to another week of How to Save A Buck, where we explore ways of saving money in personal finance, credit cards, and investing!

Fact: my grandma had Alzheimer’s.

It sucked.

She went from interacting with grandkids to not knowing how to eat.

And she isn’t the only one.

In 2020, more than 7 million people ages 65 or older had dementia in the United States. And if current demographic trends continue, more than 9 million Americans could have dementia by 2030 and nearly 12 million by 2040.

If dementia and Alzheimer’s are sticking around, and they likely are, how can you protect your finances when you don’t remember your name? It might sound silly, but it’s serious and those finances are susceptible when cognitive decline occurs.

What to do?

Plan For the Unexpected

It seems obvious, but planning ahead is crucial. If you enter a nursing facility, you’ll want to prepare your finances for that extra cost. Creating a budget, saving for retirement, and creating a diversified portfolio are a few ways to get on track.

Don’t Click on That Email

Fraud is rampant - no matter how old you are. When you’re 75, do you think you’ll be able to tell a scam email from a real one? It’s getting more difficult for me and I’m 40+. Fraudsters often target seniors. Be wary of unsolicited phone calls/emails, don’t provide personal information, and monitor your accounts regularly. If you suspect fraud, report it immediately to your bank or credit card company.

The Power of Family

Creating a durable power of attorney is a legal document that allows someone else to make financial decisions on your behalf if you become incapacitated.

This can be especially important if you don’t have a spouse or family member who can take on this responsibility.

The Tech Touch

Use technology to your advantage. In previous newsletters, we covered apps and tools, like Mint, to help you manage your finances. Some mobile apps allow you to check your account balances and transfer money from your phone. Others help you track your expenses and create a budget.

It’s even more powerful to leverage this with a financial advisor. Now I’m not a huge fan of advisors, given my previous posts (hint - fees!). However, if your mental health declines, having an advisor can assist in making financial decisions for your loved one, including creating a plan for your later years and any wealth gifts for families.

Don’t Stop Moving

One of the best ways to slow a decline in health is by moving your body!

A recent study published in the Journal of Alzheimer’s Disease found that regular stretching, balance, and range-of-motion exercises may be as beneficial as aerobic movement in slowing down mild cognitive decline.

Next time you think about sitting on the couch to watch your favorite show during the day, make the choice that your health is worth your effort. Take a walk, practice your balance and flexibility with simple at-home movements, and never forget the power of breathing in fresh air from the outside. It can do wonders.

Finally, consider downsizing and removing unnecessary expenses. In his book, Die with Zero, Bill Perkins suggests maximizing life experiences by spending money wisely throughout your early years. The book offers insights into how we can plan out our finances so that we enjoy our life and die with zero regrets.

When a parent or grandparent starts to show signs of aging, getting their financial health in order will make life easier for them and you.

In fact, it will give you the opportunity to extend your hand and provide physical support. When they need it most.

Save On,

Chris