Advancements in medical technologies, new procedures, diagnostic tests, and effective drugs continue apace. But like most things in life, there is an upside and a downside.

Advancements in medical technologies, new procedures, diagnostic tests, and effective drugs continue apace. But like most things in life, there is an upside and a downside.

An article in Georgetown Magazine, Fall 2014, entitled “The Power to Predict Alzheimer’s Disease Before It Starts,” by Sara Piccini, offers points to ponder. While not yet a reality, Ms. Piccini notes that “current research underway at Georgetown (University) and other institutions may soon lead to the development of a predictive blood test for Alzheimer’s disease that is highly accurate, inexpensive, and easy to administer.”

Alzheimer’s disease, always fatal, afflicts one in nine Americans beyond age 65. Financial planners increasingly are helping families cope with the financial and life transitional impact of the disease and the toll it takes on caregivers. Special planning is required not just for end-of-life circumstances but the transition period. That goes for any affliction that requires a period of caregiving before death. Forthright conversation among family members long before a crisis erupts is important to piece of mind.

Advancements in genetic testing are expanding medical tests that identify changes in chromosomes, genes, or proteins. According to the U.S. National Library of Medicine, over 1,000 genetic tests are in use with more under development. The results can confirm or rule out a suspected genetic condition or help determine a person’s chance of developing or passing on a genetic disorder. You might undergo a test to look for signs of a disease, if you think you have an elevated risk of a disease in the future or suspect you might pass on a disease to children, or you are pregnant and want an unborn child to be tested for a disease.

Ms. Picinni raises the question in her piece. If you could find out, would you really want to know? Ethical dilemmas arise including issues surrounding self-administered or assisted suicide, abortion, and the creation of “designer babies.” On the other side of the coin is time to prepare and arrange personal, financial, and family affairs for what is to come.

The Kiplinger Letter, November 14, 20014, reported a number of medical advances. New drugs are coming to fight cancers, including melanoma and cancers of the bladder, lungs, and stomach. A new treatment for heart failure promises a higher survival rate than with current medications. New treatments for lung disease, universal flu vaccines, non-statin cholesterol controllers, and cheaper and faster lab and blood tests are on the horizon. Some advances will save time and money, but others, including pricey drugs, will raise costs.

Individuals may see higher insurance premiums, deductibles, co-pays, and exclusions. Employers with health plans will see higher costs, some or all of which will be passed on to employees. If predictive diagnostic tests are available, could insurance companies demand such tests, thereby rejecting applications for long term care or disability insurance, or other coverage?

Those saving for retirement have to consider the possibility of living longer while incurring rising costs for long term care or other forms of incapacity or dependence. Today with Medicare, a couple with fairly common medical challenges like diabetes, arthritis, or other ills, can spend $12,000 to $15,000 per year on premiums, co-pays, deductibles, donut holes on drug coverage, and non-covered items. USA Today (April 1, 2014) reported that health care spending growth hit a 10-year high early in 2014. With the age wave rolling on, health care expenditures must be a major consideration when it comes to the sustainability of cash flows from your investments in retirement.

Retirees, and family members that may be tapped as caregivers, need to join the family care conversation. What arrangements have been made for powers of attorney for assets and health care, advance directives, insurance coverage? If you are the “go to” adult child, do you know what your parents want? Mom and dad, are your children clear as to your wishes? Would they know how to help and how to access resources, including money?

In a November 19, 1999, Tom Wilson Ziggy cartoon, the character mused, “I’ve finally reached the age where my Wild Oats have turned into All-Bran.” Yin and yang. At least All-Bran is cheaper than Wild Oats and potentially more healthy!

Lewis Walker is President of Walker Capital Management, LLC. Certain advisory services offered through The Strategic Financial Alliance, Inc. (SFA). Lewis Walker is a registered representative of SFA which is otherwise unaffiliated with Walker Capital Management, LLC. lewisw@theinvestmentcoach.com