In Part 1, I wrote about the assumption embedded in almost every retirement plan: that the person managing the corpus at seventy-five will think and decide the way the person who built it did at forty-five. The research suggests that is not a safe assumption. And yet almost no retirement planning framework addresses it directly. How do you protect yourself from your future self?
Read part 1 here: Your Retirement Plan Has a Blind Spot (Part 1)
There is no clean solution to this problem. Anyone who tells you otherwise is selling something. But there are ways to reduce how much damage a gradual decline in judgement can cause, and most of them require decisions you make now, while you still trust your own thinking.
About the author: Sneha Rege writes about money, behaviour, and the friction between them. Based in Bengaluru, she focuses on the urban Indian salaried professional: the person who is doing most things right and still wonders if it will be enough. She is currently working towards her SEBI RIA credentials. Her work can be found at sneharege.com.
A will solves a different problem than you think
Most estate planning conversations begin and end with wills, nominations, and succession documents. All of these matter. But they solve the problem of being dead.
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The harder problem is being alive, holding substantial assets, and no longer being fully capable of managing them with the same clarity you once had. A nomination ensures ownership transfers correctly. It does nothing to prevent an impulsive investment decision at seventy-eight. A will cannot stop a persuasive stranger, or a family member, from convincing someone to surrender a perfectly good insurance policy or withdraw from a carefully built portfolio.
Estate planning is necessary. It is simply not the same thing as protecting yourself from your future self.
Simplify before life forces you to
A fifteen-fund portfolio can feel intellectually satisfying in your forties. You track categories, compare performance, rebalance manually, and enjoy the process. The question worth asking now is whether you want to manage the same complexity at seventy, possibly alone, possibly without the same attention span you have today.
Simplicity is often treated as a compromise made by people who cannot be bothered. I have started thinking of it differently, as deliberate preparation. A smaller number of funds, clear asset allocation rules, and hybrid or balanced advantage funds that handle some rebalancing without requiring active decisions all reduce the number of things your future self must get right.
None of this eliminates risk. It reduces the decisions that depend on sharp daily judgement, which is the point.
Build systems that do not depend on your memory
The more essential financial tasks happen automatically, the fewer opportunities there are for costly mistakes. Insurance premiums, utility bills, investment contributions, and annual reminders can all be automated. This sounds almost trivially simple until you remember that missed payments and forgotten obligations are sometimes among the earliest visible signs that something is shifting cognitively.
A well-designed system assumes, without drama, that one day you may not remember everything you remember today. That is not pessimism. It is the same thinking that goes into writing a will or buying term insurance. You are not expecting the worst. You are reducing its cost if and, more importantly, when it arrives.
Write down how you think while you still trust your thinking
Most Indian families have documentation for assets. Property papers, policy documents, bank account details, nomination records. Very few have documentation for decisions.
An Investment Policy Statement is simply a written record of how you reason when you are reasoning clearly. What asset allocation do you want to maintain? Under what conditions would you rebalance? What would justify selling an investment? Who should be consulted before any major financial decision? How often should the portfolio actually be reviewed, and by whom?
The document will not make decisions for you. But it creates a reference point for the people who may need to help you later, including a future version of yourself who may not remember why you made the choices you did. I have started thinking of this as a letter to my older self. Not a legal document but a record of conviction, written while the conviction is still intact.
This is perhaps the most underused tool available to a DIY investor, and it costs nothing to create. It does not have to be elaborate, just a documented journal of the decisions you will take and why. Any AI tool can further help you refine it.
Distribute trust, do not concentrate it
Most people instinctively plan to rely on one trusted family member for financial support in old age. That is understandable and often works well. But concentrating financial dependence in a single relationship creates its own fragility, not because children are selfish or families are unreliable, but because dependence changes relationships in ways nobody plans for.
We remember Baghban because it named something most Indian families feel but do not say aloud. The film’s power was not in its melodrama but in its recognition that good intentions and good outcomes are not the same thing.
A more resilient approach involves layers. One trusted family member who understands the overall picture. One independent professional with a genuine fiduciary responsibility toward your interests, not a commission-driven one. One or two people who know where the important documents live. Redundancy feels unnecessary when everything is functioning well. It becomes invaluable when it is not.
Make large decisions harder to make alone
Perhaps the most practical safeguard is also the most counterintuitive: deliberately introducing friction into major financial decisions.
Large withdrawals should require a conversation with at least one other person. Significant portfolio changes should have a waiting period built in. Property decisions should involve more than one trusted voice. The goal is not to remove independence or dignity. The goal is to protect against the specific condition this entire series has been about: high confidence combined with quietly deteriorating judgement.
We already accept multiple layers of verification for routine online banking transactions. There is no reason why the largest financial decisions of a lifetime should rest entirely on a single impulse from a single person at a stage when judgement is most vulnerable.
What this is really about
As already mentioned earlier, there is no perfect solution to this invisible, underestimated problem. Every safeguard discussed here has its limitations.
Wills work after death, not before. Family support depends on relationships that are inherently complicated. Professional advice requires trust that must be earned and maintained. Simplified portfolios reduce decisions without eliminating them. Automation handles the routine but cannot make judgement calls.
None of this adds up to a complete solution. But perhaps that is the wrong standard to hold it to.
Retirement planning has long been defined as making sure money outlasts life. That definition is incomplete. The fuller version is making sure life, in all its gradual imperfections, remains capable of managing that money with dignity. And when that becomes difficult, the systems, structures, and relationships built while the mind was sharp should be strong enough to carry some of that weight.
The person who builds the corpus and the person who eventually depends on it may not be the same. Planning for that gap is not morbid. It is simply honest.
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Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over 14 years of experience publishing news analysis, research and financial product development.
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