An ancient Chinese proverb goes as follows: Money can take one man anywhere, but it cannot pass through three generations.
This Chinese proverb is remarkable in light of current financial statistics. 90% of families do not retain their unity and their finances after three generations.
One reason may be that many older adults fall victim to financial scams. Older adults hold a disproportionate percentage of the nation’s wealth. Yet, 22% of adults over age 71 have some cognitive disorder.
When working with a financial advisor, I recommend you consider the following to protect yourself:
A tension exists between protecting older adults with diminished capacity and promoting autonomy in older adults who have capacity. All of us have different objectives, yet all of us want to remain independent and in control of our lives. Yet, denying reality will not protect you or your wealth. Setup protocols and relationships with advisors you trust to place your best interest first.
For more insight, listen to Jentner Wealth Management’s weekly podcast by clicking here. Or download Jentner’s white papers on The Four Cornerstones of Prudent Investing and The Active Versus Passive Investing Debate.