As we get older, we plan for all sorts of things—vacations, retirement, even how we want to spend our days. But there’s one area many of us avoid planning for: what happens if our memory starts to fade.
The truth is, cognitive decline is common in aging, even for those who remain independent and active. It can start with small things—misplacing a bill, forgetting a password—and gradually affect more serious decisions, like investments, bank accounts, and bills.
That’s why it’s so important to plan ahead while you’re still sharp. A few simple steps now can save you—and your family—a lot of stress later.
This post will walk you through practical, easy-to-follow steps to safeguard your finances long before memory problems become an issue.
Step 1: Simplify Your Financial Life
The fewer accounts, bills, and decisions you have to manage, the easier it will be to stay organized — and the easier it will be for a trusted person to step in if needed.
Here are some smart simplification steps:
- Consolidate bank accounts into one primary checking and one savings account.
- Reduce investment accounts to one or two at most, ideally with a trusted brokerage or advisor.
- Set up automatic bill payments for utilities, credit cards, insurance, and mortgage/rent.
- Cancel unused credit cards or subscriptions to avoid confusion or fraud later.
By simplifying your financial life, you make it easier to spot problems — and harder for anything to fall through the cracks.
Step 2: Organize Your Paperwork
Think of this as building your own “financial emergency kit.” You want all your key information in one place so it’s easy to access.
Create a folder—either digital or paper—that includes:
- Bank and investment account statements
- Insurance policies (life, home, long-term care)
- A list of monthly bills and how they are paid
- Pension or Social Security benefit info
- Estate planning documents (will, power of attorney, health directives)
- Contact info for your financial advisor, accountant, or lawyer
You don’t have to share this info with anyone just yet—but make sure at least one trusted person knows where to find it.
Step 3: Designate a Financial Power of Attorney
This is one of the most important steps you can take. A durable financial power of attorney (POA) lets someone you trust take over your finances if you become unable to do so.
Without a POA, your loved ones may need to go to court to manage your finances—a long, expensive, and frustrating process.
A few key things to know:
- Choose someone you trust completely — a spouse, adult child, or longtime friend.
- Talk with them in advance about your values and financial goals.
- Make sure the document is durable (meaning it stays in effect even if you become incapacitated).
- Keep it updated — laws and personal circumstances can change.
A POA is like a safety switch: you may never need it, but if you do, it’s critical.
Step 4: Put Financial Safeguards in Place
You can also take some smart steps to prevent mistakes and fraud, especially if memory begins to fade slowly.
Here are some helpful safeguards:
- Set account alerts to notify you or a loved one of large withdrawals or low balances.
- Add a trusted contact to your investment accounts—this doesn’t give them access, but allows your financial firm to contact them if something seems off.
- Use read-only access for family members who just want to help monitor, not control.
- Freeze your credit to protect against identity theft or impulsive applications for new credit.
These steps let you maintain control, while still protecting yourself in case your memory becomes less reliable.
Step 5: Plan for Professional Help
At some point, you may want or need help managing your investments and finances. It’s better to choose that help now, rather than waiting until you’re in a crisis.
You might consider:
- A fee-only financial advisor who acts in your best interest (a fiduciary)
- An accountant or bookkeeper who can help track bills and taxes
- A trusted family member with limited authority to help manage day-to-day tasks
Start by talking to your current advisor (if you have one) and get a feel for who you’d trust if your needs changed. Write this plan down, and let your family know your preferences.
Step 6: Create a Senility Portfolio
This is the heart of my book, Your Senility Portfolio. A Senility Portfolio is a simplified, income-focused investment plan designed to protect you when you’re no longer able to manage things yourself.
It typically includes:
- Safe, low-volatility investments like dividend-paying ETFs, bonds, and annuities
- Minimal account movement or rebalancing
- A reliable income stream to cover living expenses
- Automatic reinvestment or withdrawal schedules
The idea is to remove the need for decision-making, reduce the risk of bad choices, and build in income that lasts.
If you’re managing your own investments now, ask yourself: “If I weren’t able to do this anymore, could someone else step in without confusion or risk?”
Step 7: Talk to Your Family
This can be the hardest part—but it’s also the most important.
Set aside time to have an open, honest conversation with your spouse, adult children, or close friends about:
- Your wishes for how your finances should be handled if your memory declines
- Who you’ve designated as power of attorney
- Where your important documents are located
- What kind of help you may need — and when
Many older adults fear losing independence. But involving your family before there’s a problem actually helps you stay in control longer. It builds trust, avoids conflict, and creates a plan everyone can follow if needed.
A Real-Life Example: Meet Harold
Harold, age 75, still pays his bills and manages his investments online. But after forgetting to pay his property taxes two years in a row, he knew it was time to make changes.
He simplified his accounts, set up auto-pay, and asked his daughter to have read-only access to his bank account in case something looked off. He gave her financial power of attorney and showed her where his documents were kept.
Harold also shifted some of his savings into a monthly income annuity, and moved the rest into a conservative dividend ETF portfolio that doesn’t require much maintenance.
Now, he’s still in charge — but with peace of mind knowing his finances are protected for whatever comes next.
Final Thoughts
None of us likes to think about memory loss. But planning ahead isn’t giving up control — it’s keeping control. By taking smart, simple steps now, you can make sure your finances are safe, your wishes are honored, and your loved ones aren’t left in the dark.
Even if your memory stays sharp for years to come, you’ll be glad you prepared.
This post is an excerpt from my book:
Your Senility Portfolio: Safeguarding Your Finances When Memory Fails
Available at Amazon.com in paperback and eBook formats.
In the book, you’ll learn how to design a simple, income-producing retirement plan that works even if you can’t manage it yourself later on. Because the best time to plan for the future — is now.
Disclaimer: For Educational Purposes Only
The content on this website is intended for general educational use and should not be considered personalized financial, legal, or tax advice. Always consult a qualified professional before making financial decisions. All investments carry risk, and past performance is not a guarantee of future results. The author assumes no liability for actions taken based on this content.