Deciding when to turn over financial control is crucial in planning for cognitive decline and can have significant implications for investors, according to a recently published Vanguard research paper, The risk of cognitive decline: Investors’ perception and preparation. The paper surveyed more than 2,000 investors, and the results show that investors tend to underestimate the risk of cognitive decline.1
“While most respondents had some planning in place, they were less likely to have had proactive conversations about care and the transfer of control of finances,” said Anna Madamba, a senior investment strategist in Vanguard Investment Strategy Group and the paper’s author. “Timing the transfer is key, as mistiming can have significant implications for financial well-being.”