WASHINGTON (6/3/15)--As consumers age, their ability to manage money and other personal assets can become compromised, which has led to the Consumer Financial Protection Bureau’s (CFPB) latest bulletin, “Planning for diminished capacity and illness.”
The bulletin contains a number of strategies for the elderly and their caretakers to prepare for their financial futures.
“Diminished financial capacity” is used to describe the decline in a person’s ability to manage money and financial assets to serve his or her best interests, including the inability to understand the consequences of investment decisions.
The CFPB notes that this causes consumers to become more vulnerable to financial abuse.
Its checklist to minimize such risks includes:
The bureau also recommends several actions for caretakers dealing with those who may have diminished financial capacity: