Why you Should Name a Trusted Contact

I'm not expected to diagnose my clients. I am, however, expected to have a plan if I suspect cognitive decline or elder financial abuse.

That's where a Trusted Contact comes into play.

We're having some work done on our pool right now (thanks to my 8-year-old, who threw a huge rock into it to try and convince us there was a turtle in the pool), and our contractor was telling us about a client who keeps forgetting conversations they've had.

Problems have been explained, next steps have been laid out, and then the client forgets. They call frustrated that the work isn't finished, so the contractor explains it all over again.

Financial advisors encounter similar situations.

If a longtime client suddenly starts forgetting conversations, giving conflicting instructions, or making unusual financial decisions, we're not supposed to diagnose the problem. We're supposed to document what we're observing and follow established procedures.

One of those procedures may involve contacting the client's Trusted Contact.

A Trusted Contact does not have authority to view your accounts, execute trades, or make financial decisions simply because you've listed them. They're someone your Advisor may reach out to under certain circumstances, such as concerns about financial exploitation, ability to manage finances, or difficulty contacting you.

Many financial institutions offer this option, but it’s typically optional, so many people leave it blank.

With Thanksgiving coming up, this might be a good conversation to have with your family. Talking about money can be hard. One approach might be to offer up that you’ve listed a Trusted Contact for your accounts, and they should do the same. Offering to help them do this on the spot is even better.

It's a small administrative task that could make a big difference when something doesn't seem right.

Linda Rogers, CFP®, EA, MSBAis the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.

Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firmoffering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.