Our population is aging rapidly, the more our baby boomer deomgraphic retires. We knew this was going to occur, but did we realize that more retirees will also become incapable of making practical fiancial decisions?

To put a legal handle on this, we must understand that “capacity” is the ability to register information upon which financial decisions are based; morover with an understanding of associated risks involved and the consequaential future of every action that one takes on his or her behalf.

What causes incapcity to decide? With age some people face health challenges from dementia to Alzheimers, as well as many other illnesses such as those caused by sugar imbalances of a diabetic. Many other diseases such as a minor stroke can be symptomatic of reducing mental capacity. Consider that stress can be caused by bereavement causing fear and quick irradic decision processes related to finances.

One's cognitive sense of sound fiscal planning may erode with age, making it imperative that the nearer you approach retirement age the more important it is to have powers of attorney in place. Visit your lawyer and talk to your financial advisor. Together they can make sure your investments and retirement will remain secure through any future unforeseen change in decision-making capacity.