The senior citizens market offers a great scope for financial planners and insurance agents who wish to specialize in this area. Estate planning, long-term care, and asset administration are a few beneficial services that any senior citizen would need from such professionals. However, this market also carries some specific risks and issues that need proper approach to be dealt with! In order to succeed in this market, it is essential to have a basic knowledge of the health and elderly problems faced by this section of market segment. Otherwise, helping them to manage their funds is simply impossible. Moreover, dealing with the elderly people requires the planners to prepare for special considerations not only to protect themselves but also to effectively help them to put their funds to rewarding use.
Concerns that Need Co-ordinated Approach
One of the major concerns that financial planners tend to encounter while dealing with elderly clients is mental aptitude. Experts suggest that a planner must establish and maintain a current proof in writing that the client is mentally fit. Doing so helps in averting upcoming headaches and legal bickering. At the same time, even the seniors still living active lives should reflect on the chances of dementia or Alzheimer’s. Here, the planners should ensure that they have taken proper measures to prepare for this mental state.
It would be wise for the planners to ask their clients to submit a certifying letter from a doctor, which states that they are all right. This forms an essential part of the complete paperwork that needs to be in the hands of the planner for offering more protection when there is a need to prove that their clients were fully aware as to what was been signing. Special precautions need to be taken by the planner when there is no estate plan or formal power of attorney. In this case, the elderly should sign a document for assigning the right to the planner for allowing a trusted relative to act on the elderly’s behalf in situations of incapacity.
Moreover, the elderly client must sign an acknowledgment whenever there is a refusal to follow the suggestions of the planner. Doing so offers a line of defense against the related people who may look to gain control over the elder person’s assets through several means of persuasion such as emotional exploitation. Although there is no way for full keeping such undue interferences at bay, planners can however safeguard themselves from future liability, as there exists a proof now in writing.
Efforts that Planners Must Make
As a step for personal care, a financial planner should refer their senior clients to other health care professionals for ensuring their peace of mind and welfare. For example, the Association for the Advancement of Retired Persons (AARP) can be recommended as it provides several elderly care services that is not within the service portfolio of the planner. Doing so will generate a new bond of trust for enforcing lifetime relationships. This means that the financial planners should create their own reliable network that entails other elder care resources in different fields, giving an avenue to the aged people for taking care of their health along with their assets.
Furthermore, financial planners who are aware about such important aspects as which clinics help in avoiding basic health issues related to Medicare offer more value-added services to their clients then those who are restricted to only financial services. However, due diligence is required to take care of who is permitted in this network after exploring the facilities and services of those resources.
Bio: Clarence Evans works as a financial analyst in a firm that develops support systems for other companies. He studies everything, right from financial conferences to even the twitter feeds of experienced finance personalities such as Reza Bundy. Clarence is available at @ClarenceMEvans or https://twitter.com/ClarenceMEvans.