Geisert, then 73, quickly realized that he couldn't ignore the problem. He went to a doctor for mental tests. They confirmed that his slippage in finances was a sign of mild cognitive impairment, or MCI.
Fortunately, Geisert could turn to his wife, Mynga Futrell, for support. The couple also hired a CPA to handle their taxes, and Geisert decided to stop driving. "I really don't work now," he says. "But I have things to do. I take care of the dog. I still do the yard work, and I repair some things in the house."
Geisert's story should be a wakeup call to Baby Boomers. They not only have to make sure their nest eggs can last all their retirement years, but they also need to start planning for financial care before they experience memory loss and can't make smart financial decisions.
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Already, older Americans are losing $2.9 billion a year to financial abuse, according to a 2011 study by MetLife Mature Market Institute.
And financial exploitation is considered much worse because many older Americans, especially those who have MCI are unlikely to report fraud. That's because they may not recognize a scam or they may be too embarrassed to tell anyone.
MCI is considered much less serious than dementia, but is "much more scary in terms of the likelihood that you'll still be behind the wheel of your financial life," says David Laibson, professor of economics at Harvard University.
MCI is more common among older Americans than Boomers may realize. It affects about 20% of Americans over age 70, according to the American College of Physicians.
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"We don't l! ike to look ahead to things like that," says Futrell, Geisert's wife. "But it's necessary to invest some resources into planning and try to cover your bases. And then if those things don't happen, lucky you."
How to prepare for memory loss
• Develop a support team. It should include those who are willing to take care of you on a daily basis and those you can trust to take care of your finances, says Louise Schroeder, a financial planner in Stillwater, Okla., who specializes in planning for aging successfully. Make sure that they are willing to handle these responsibilities and understand your wishes and how you want your finances handled, she says.
Unfortunately, it's not always easy to find younger family members to rely on. The Baby Boomer generation is the largest in U.S. history. As they are growing older and living longer, their family members are fewer and living much further apart.
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Some people may prefer to rely on a lawyer or a financial adviser they know and trust. But if your adviser is older than you are, be sure the firm also has younger employees you can rely on. Some financial planners, such as Locker Financial Services in Little Falls, N.J., are adding elder-life advisers to provide more support for aging clients.
• Prepare documents. After you decide on whom you will rely, you need to put it in writing. By creating a power of attorney document (POA), you will give a person authority to act on your behalf if you are incapacitated.
Be sure you also have medical directives, which include a living will and health care proxy. And keep copies of your documents in a place at home where they are easily accessible.
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You also should consider writing down a list of your desires and goals in case you have cognitive impairment and end up living in a nursing home. "Think about these things as a way to maintain control over your future! ," says J! anet. L. Lowder, elder law attorney at Hickman & Lowder in Cleveland. Because if you have not done this and suddenly have cognitive impairment, others can make decisions for you that you don't want.
• Simplify your investments. "A very complicated portfolio, with all sorts of individual stocks, non-publicly traded investments, related partnerships, is not good for an 85-year-old person to be running," Laibson says.
Before you reach that age, either delegate control to a very trustworthy adviser or change your portfolio to less-complex financial investments. Some people prefer to buy an annuity because, even if costly, it provides a steady stream of income.
Many people in their 60s start planning to move to a warm climate and live in a one-story home so they don't have to climb upstairs. But just as their knees will get creakier as they get older, their brains will react differently. A recent study of brain scans found that older Americans often have misplaced trust in others, says the University of California-Los Angeles research.
Their skills for making good financial decisions can start deteriorating as early as early to mid-50s, according to Shelley Taylor, lead UCLA researcher. That's why it's important to plan ahead and rely on close friends and family members as you grow older.
But not all older Americans are willing to listen to family members. Jody Thomas, vice president for the Better Business Bureau of Greater Maryland, became worried about her 81-year-old stepmother when her father, who is 86, mentioned that the couple often went to many free financial investment lunches. And he told Thomas that her stepmother had invested most of her money in real estate investment trusts.
"I went to FINRA's (Financial Industry Regulatory Authority) website and started finding out about investment fraud and senior abuse," Thomas says. "And REITs are given as one example of unsuitable investments for senior citizens."
When Thomas tried to bring up the issue with! her fath! er and stepmother, they became upset and refused to talk about it. "I know this is a really difficult subject," she says. "It has a lot to do with fear of losing independence."
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