Podcast Episode 359: The Role of the Power of Attorney

When it comes to financial planning, a few documents are absolutely critical for ensuring that your affairs are in order, especially in unforeseen circumstances. One such document, which often doesn’t get the spotlight it deserves, is the power of attorney (POA). In the latest episode of Money Wisdom, Heather Atkins, CFP®, CRPC®, discusses the importance of this legal instrument, particularly for women.

A power of attorney allows someone you trust to make decisions on your behalf if you’re unable to do so, and it might be even more important than a will, as it covers decisions that need to be made before one’s death. This becomes particularly significant for women, who often find themselves managing financial matters due to their spouse’s illness or incapacity.

The episode doesn’t just highlight the importance of having a POA; it also touches on the ramifications of not having one. We’ll share a story from 2022, a tumultuous year in the stock market. A couple without a POA faced financial difficulty because the healthier spouse couldn’t make necessary adjustments to their investment accounts during a market downturn. This real-life example puts into perspective the potential financial risks of not being legally empowered to act.

Moreover, the podcast provides actionable advice. It encourages listeners to not only educate themselves about these crucial documents but also to consult with estate planning attorneys to ensure they have the right POA that reflects their current life stage and wishes.

For women, this episode is particularly empowering. It stresses the need for financial literacy and understanding the intricacies of retirement accounts, beneficiary designations, and estate planning. If you aren’t sure where you stand with your power of attorney documents or don’t have anything in place and need help getting them drafted, we can refer you to an estate planning attorney who can help you put that in place. Remember that you can also call us and take advantage of our Women’s Guide to Financial Empowerment and get more insight into how to take control of your finances.

Here’s some of what we discuss in this episode:

• Why power of attorney might impact women more than men.

• What can someone who has a power of attorney do or not do.

• A story about one of our clients and how power of attorney came into play.

• Examples of issues that arise if you don’t have a power of attorney in place.