When a person starts to lose his mental faculties, this affects how he handles his money. Chronic forgetfulness and a lack of reasoning can lead to financial disaster. Worse still, vulnerable seniors are targets for financial fraudsters because their impaired thinking makes them less cautious and more trusting. Examples include:

- Invitations to free luncheons, at which the hosts offer amazing financial “deals.” Lonely seniors are only too happy to attend such events, and they get sucked in.

- A much younger person suddenly takes a romantic or overly friendly interest in the senior, who ends up trusting her with sensitive financial tasks, such as withdrawing money and collecting his pension for him. He sometimes even writes her into his will.

- Telephone “appeals” from non-existent charities or announcements of prizes that you can only claim if you send in a financial deposit first.

There are some protective measures that you can take. These include appointing a trusted relative or financial advisor to help with making money decisions, going through your mail, and assisting with financial tasks, such as withdrawing cash and monitoring bank statements.

But how do you know when the time has come to get help? How can you tell if you’re simply becoming a little forgetful or developing the first signs of something more serious?

Time for a test

I recently asked these questions on The Goldstein on Gelt Show, when I interviewed Dr. Douglas Scharre, a clinical neurologist atOhioStateUniversity.

Dr. Scharre and his team have developed the Sage Test, a simple quiz that can detect the early signs of cognitive deterioration. “Take the test as a baseline when you’re 65 and still thinking pretty well,” he suggested. “You’ll have a baseline so that you can take it over time, and then you can see very early on if there’s a change.”

Our discussion covered many topics, including the causes and symptoms of dementia, and how to handle the delicate issue of suggesting to your parents or anyone else that you love that they may be showing the first signs.

To find out the answers to these questions and more, listen to this crucial interview at www.GoldsteinOnGelt.com.