Financial advisor David Demming Sr. had an uneasy feeling when an elderly client called his office asking for money for home renovations. An employee heard a voice in the background whisper, “Tell him it’s for the porch.” » His company, Demming Financial Services, eventually realized that a neighbor was trying to take advantage of its client.

“We took revenge because one of his children was a federal prosecutor,” Demming Sr. said. “But it was one of those situations where there is clearly a vulnerability and you have to get involved.”

This is an all-too-familiar scenario for aging clients, especially those suffering from Alzheimer’s disease and related dementias. A few 2 in 3 Americans now suffer some level of cognitive impairment at the age of 70, according to ScienceDirect. But new research highlights warning signs that can help advisors protect their clients well before that.

Credit check

Declining credit scores appear on average five years before a health diagnosis is made, according to a study. Study by the Federal Reserve Bank of New York published in May. Additional metrics, such as missed payments on credit cards and mortgages, may also indicate a problem, research shows. “Advisors face these situations more often than many realize,” said Melissa Pavone, founder of Mindful Financial Partners. “We encourage our clients to consider these ‘what if’ scenarios from the beginning. »

Other signs of cognitive decline include confusion over financial matters that clients previously handled with ease or unusual savings withdrawal patterns, Pavone told the Daily Upside. These warning signs could be important tools that give advisors an edge in the fight against financial scams.

It’s time to talk: When it comes to discussing cognitive decline, the conversation is often difficult. Pavone advises a step-by-step approach, often involving trusted family members or pre-approved individuals. It’s also crucial to adjust financial strategies, moving toward more conservative investments, putting controls in place over account activity, and establishing legal protections like a power of attorney. “It is essential to approach them with patience, empathy and clarity,” she said.

Demming Sr. suggests starting these conversations with a client in their 50s, before cognitive decline becomes a pressing concern. “When kids move out, it becomes a more natural conversation,” he said.