7 secrets to a richer retirement #7 Protect the future you

As the age of your brain undergoes subtle changes that can affect how you manage money. For example, you'll probably become more optimistic - a phenomenon known as positive effect.

In hunter-gatherer days, when I got older, they no longer were called to pick up a spear and defend the tribe. "You need not be so focused on everything that could go wrong," says Laura Carstensen, director of the Stanford Center on Longevity.

Hey, what's wrong with a little optimism? That's one reason older tend to be happier than younger people, according to recent studies. But the positive effect can also make you 2030 - or perhaps their parents now - less attuned to the threats and therefore more vulnerable to scammers.

It's not that older people find the idea of losing money easier, but they are more likely to think, "Good boy would never cheat me."

The most serious risk, of course, is an absolute decline in mental abilities. New studies show that the decline is more common than you may realize. After 60 years, the rate of dementia doubles every five years. By the time they reach their mid-eighties, half the population has some cognitive impairment.

However, the elderly are increasingly managing their portfolios on their own - a fact that helped make the cognitive decline a hot topic among behavioral scientists. Addressing threats now, while you're at the peak of his powers, is a good thing, says Harvard economics professor David Laibson: That means you can act today to protect yourself tomorrow.

Now put these findings into action:

Stay active
The researchers have not yet found a recipe for delaying cognitive decline. But so far, studies indicate that working out your body and your brain - through regular walks, reading books, and solving puzzles, for example - can help.

Simplify your finances when you retire, says Rosanne Rogé, a financial adviser in Bohemia, NY: "It will be harder to mess things up."

Be difficult to find
Deter scam artists from getting to you (or your parents), keeping the latest spam filters installed on their computers, putting themselves in the domestic market does not call registry, and using the caller ID in case of any slip telemarketing past.

Organize now to help later
You need a durable power of attorney, which gives a person the authority to make financial decisions for you if necessary. Assuming you have a will, you probably already have a DPA: They are usually prepared at the same time. But many financial firms require you to fill in their own ways as well. Do this by the time you retire, says New York elder law attorney Daniel Fish. Your future I may thank you.