protecting them from financial scams<\/a>,” she says. “We all get phone calls saying someone needs a password to a bank account, but people with dementia can’t rationalize that the person may not really be in trouble.”<\/p> Also watch out for any new or unusual charitable giving or odd email activity related to one’s finances.<\/p>
In some cases, the person doing the scamming isn’t a stranger. It can be a caregiver or even an ill-intentioned child. It’s tough to figure out that someone is being taken advantage of by a person close to them, which is why everyone—advisors and family members—needs to be diligent.<\/p>
“We’ve seen where all of a sudden there’s a new family member or new best friend in the client’s relationship,” says O’Leary. “Sometimes it’s the caregiver or someone coming into someone’s home who doesn’t have your family member’s best interest in mind.”<\/p>
Financial institutions do have a duty to protect a vulnerable client. If they see something out of the ordinary, like that friend trying to deplete a bank account, then the institution will report it to the family.<\/p>
A change in risk profile<\/h2>
One’s investment risk rarely changes in old age, so if a loved one with a conservative portfolio says to an advisor that they want to go all in on stocks, or buy some unusual company, then that could be a warning sign.<\/p>
Other signs, like poor judgment, an unexplained interest in riskier investments or a sudden interest in day trading are all red flags, says O’Leary. However, so too is a lack of activity or a disinterest in one’s finances—maybe your family member did have an interest in stocks and now doesn’t.<\/p>
“They might call and say they met a guy who’s going to sell them water rights of Lake Michigan,” says O’Leary. “That’s the kind of thing that the financial advisor or the person at home who’s paying attention might see. It’s about a sudden change in behavior.”<\/p>
On their own, none of these things may seem all that troubling—people forget passwords, they often have a stock they think about buying at some point—but it’s when you start to see a pattern that you may need to take action.<\/p>
Ask questions, try and find out why someone is doing what they’re doing and if it can’t be explained, then start safe guarding their finances, says O’Leary. Talk to their advisor, make sure bills are getting paid and that your loved one is not getting themselves into financial problems.<\/p>
“The sooner you can identify this the better,” she says. “Since these are higher order brain functions, they are some of the first signs that someone may be suffering from dementia. (As a family member), you really need to look for it and think about.”<\/p>