Understanding your investments: beyond the reported performance
Investing is often presented as a matter of course. The markets offer opportunities, there are many solutions, and past performance is widely discussed.
Loss of mental capacity: a risk that is rarely anticipated
Most discussions about wealth management focus on visible horizons: retirement, inheritance, financial optimization.
However, one topic is often left out of the discussion because it is so uncomfortable: loss of mental capacity.
And yet it is a very real risk that can occur at any age, either suddenly or gradually.
Accidents, illness, cognitive impairment: when the ability to make decisions disappears, it is often loved ones who find themselves helpless.
Anticipating this type of situation is not a pessimistic approach.
On the contrary, it is a responsible way to protect one’s interests, loved ones, and the continuity of one’s choices.
What it really means to lose one’s capacity for discernment
Loss of decision-making capacity does not necessarily mean total or permanent incapacity.
It can be partial, progressive, temporary, or long-lasting.
In practical terms, it means no longer being able to understand a situation, assess its consequences, and make informed decisions.
In this case, the person concerned can no longer manage their personal, financial, or property affairs independently.
In Switzerland, this situation triggers the intervention of a specific legal framework, with the possible implementation of protective measures.
However, although these mechanisms are necessary, they do not always correspond to the wishes or values of the person concerned.
Why is this subject so often avoided?
The loss of mental capacity is a subject that people prefer to avoid.
It conjures up images of vulnerability, dependence and loss of control.
Many people think that this risk does not yet concern them, or that it will always be possible to decide “when the time comes.”
Others assume that those around them will naturally know what to do.
In reality, when the unexpected happens, a lack of preparation often creates complex situations:
decisions made in a hurry, loved ones faced with heavy responsibilities, choices that do not necessarily reflect the person’s initial wishes.
Wealth governance and continuity of decisions
Losing one’s capacity for discernment does not only mean losing control over personal decisions.
It can also have significant consequences for wealth management: frozen accounts, suspended investment decisions, inability to sign, sell, or arbitrate.
Without a clear framework, the continuity of your estate is undermined.
And it is often loved ones who have to navigate a complex legal and administrative environment, sometimes without any guidance.
Anticipating these issues means ensuring that important decisions can continue to be made in the spirit and interests of the person concerned.
When experience makes the subject very real
It was when I was confronted with this type of situation in my own circle that I really realized the importance of this issue.
Seeing someone gradually lose their ability to make decisions, without the rules of the game having been clearly defined in advance, was deeply affecting.
The family, although well-intentioned, found themselves faced with difficult choices:
Who decides? Within what framework? According to what priorities? With what legitimacy?
This experience reminded me of something essential: when nothing has been anticipated, it is often circumstances—not will—that dictate decisions.
Anticipate without dramatizing
Anticipating the loss of mental capacity does not mean imagining the worst-case scenario.
It simply means establishing a framework while one is still fully capable of making decisions.
This allows you to:
- designate trusted individuals,
- clarify roles and boundaries,
- ensure continuity in financial decisions,
- and, above all, relieve the burden on loved ones in the event of unforeseen circumstances.
In Switzerland, there are tools available specifically for this purpose.
However, it is important to take the time to understand them and adapt them to your personal and financial situation.
Conclusion
The loss of mental capacity is a sensitive subject, often put off until later.
However, it is one of the most destabilizing risks when it occurs without preparation.
Taking the time to think about it, without urgency or fear, allows you to preserve what really matters: the consistency of your choices, the protection of your loved ones, and the continuity of your financial trajectory.
In this case, planning ahead is not a constraint.
It is a form of lucidity and responsibility.