Education

Out of this world

This month I am going to address a subject that no-one really likes talking about but which I think I have a responsibility to address because I and my subscribers are all getting that little bit older.

As the Pink Floyd lyric goes ‘another day older, another day closer to death’, which is just a truism, but as we get into our 60s and 70s and beyond (and most of my subscribers are in that age group), the number of days is not so many as it was. 

I know from you, my readers, that one of the principal concerns people have when they start running their own portfolios is that, although it is not so difficult when you have some training and have accumulated a bit of experience, it is unlikely (although not so in every case, I know) that a surviving partner would be comfortable taking over at short notice, especially as this would be an added responsibility during a period of grief and when other practical tasks of some complexity may need attention.

So, what would you want to happen to your portfolio management if you are still in charge when you die, or if you lose your mental capacity, which could be a slow and let’s face it, hard to accept or even recognise process?

Can we (I count myself in on this problem, naturally) do something now to prepare and make the situation easier for our loved ones? 

Most of my subscribers are couples and one partner (male or female) is ‘running the money’.  A small number of you are single, but there is still a problem that has to be resolved by someone else when you depart the scene.  Older age may imply that the problem will arise sooner rather than later, but experience has shown me that even the relatively young can be hit by serious or even fatal health issues.

I believe we ought to at least do some logical thinking about this real issue and this article is an attempt to get you started.  As always, I am happy to respond to feedback and suggestions and pass on good ideas and advice anonymously.