Aug 23, 2021 Financial Considerations After A Bad Diagnosis
Sometimes a bad diagnosis puts you on a new life path you didn’t consider. Diseases like Alzheimer’s and Dementia come with many medical decisions, but we often get asked how to organize finances in light of the change.
There are a few things you can consider financially to prepare yourself. First, make sure your legal work is up to date and includes a Power of Attorney that is active immediately.
1. Financial Power of Attorney – Enables you to act as POA for financial purposes.
2. Health care Power of Attorney – Lets you make health care decisions for someone
3. You may consider updating your existing legal paperwork to include a special needs trust. Then, if something happened to the “healthy” spouse first, it could help protect assets.
Planning for the progression of care is also essential. It isn’t entirely financial but making sure that your house will work over time and that you could accommodate help. That help may be actual caregiving or respite care, so you can take a break if need be. Making sure there is a plan for those planned and unplanned expenses can let you concentrate on more critical areas of life. Of course, there are other considerations, but that has a lot to do with how the disease progresses.
From a fundamental standpoint, I think of three principles:
1. Get help early and often. Too many people try to do everything on their own. It seems that people who get assistance are more likely to remain independent longer(2).
2. It can be helpful to keep your decisions “in front of you.” Choose while it is still your choice to make. If you wait until “there is no other way,” you waited too long. It is less stressful to deal with options within our power, and making decisions under stress can result in riskier decisions(1).
3. The best time may be now. So please take advantage of what you can do now while you are still able to do it. Prioritize what is important and enjoy the time you have.
These are tough decisions to make and challenging questions to answer. Consider sitting down with your advisor to start planning your roadmap. You can contact us here.
1. Coates, J. M., & Herbert, J. (2008). Endogenous steroids and financial risk taking on a London trading floor. Proceedings of the national academy of sciences, 105(16), 6167-6172.
2. Shapiro, A., & Taylor, M. (2002). Effects of a community-based early intervention program on the subjective well-being, institutionalization, and mortality of low-income elders. The Gerontologist, 42(3), 334-341.
Leonard Rickey Investment Advisors, PLLC (“LRIA”), is an SEC registered investment adviser located in the State of Washington. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of LRIA, please contact LRIA or refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov).
This is provided for general information only and contains information that is not suitable for everyone. As such, nothing herein should be construed as the provision of specific investment advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. There is no guarantee that the views and opinions expressed herein will come to pass. This newsletter contains information derived from third party sources. Although we believe these third-party sources to be reliable, we make no representations as to the accuracy or completeness of any information prepared by any unaffiliated third party incorporated herein and take no responsibility therefore.
Any projections, forecasts and estimates, including without limitation any statement using “expect” or “believe” or any variation of either term or a similar term, contained here are forward-looking statements and are based upon certain current assumptions, beliefs and expectations that LRIA considers reasonable or that the applicable third parties have identified as such. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions or beliefs underlying the forward-looking statements will not materialize or will vary significantly from actual results or outcomes. Some important factors that could cause actual results or outcomes to differ materially from those in any forward-looking statements include, among others, changes in interest rates and general economic conditions in the U.S. and globally, changes in the liquidity available in the market, change and volatility in the value of the U.S. dollar, market volatility and distressed credit markets, and other market, financial or legal uncertainties. Consequently, the inclusion of forward-looking statements herein should not be regarded as a representation by LRIA or any other person or entity of the outcomes or results that will be achieved by following any recommendations contained herein. While the forward-looking statements here reflect estimates, expectations and beliefs, they are not guarantees of future performance or outcomes. LRIA has no obligation to update or otherwise revise any forward-looking statements, including any revisions to reflect changes in economic conditions or other circumstances arising after the date hereof or to reflect the occurrence of events (whether anticipated or unanticipated), even if the underlying assumptions do not come to fruition. Opinions expressed herein are subject to change without notice and do not necessarily take into account the particular investment objectives, financial situations, or particular needs of all investors.
For additional information about LRIA, including fees and services, please contact us for our Form ADV disclosure brochure using our contact information herein. Please read the disclosure brochure carefully before you invest or send money.