5 Strategies For The Sandwich Generation

By TRG Advisors on June 10, 2021

Are you providing regular financial support to aging parents or young adult children? If so, it’s likely you’re part of the “Sandwich Generation.”

To help minimize the stress and financial downside caused by these added responsibilities, we have identified five strategies to help you bolster your retirement savings while financially constricted by those you love.

#1: Establish a Financial Plan

With so much happening in your life, it’s vital to have a spending and savings plan coupled with a long-term plan.

To make the most of your retirement savings (likely the reason you’re working so hard), it’s important to review today what your financial life may look like when you’re retired, i.e., retirement savings versus expenses.

Typically, financial planning is more complex for the Sandwich Generation, given your added financial obligations. Therefore, consider leaning on us, who can guide you through the financial planning process, often minimizing frustration and saving you money.

#2: Keep an Eye Out For Medical and Financial Scams

Older adults lose an estimated $3 billion each year to financial scams, according to the National Council on Aging (NCOA). Therefore, having frequent conversations with your parents regarding scams is important in helping to protect them financially as well as yourself, since you’ll likely be the first person they turn to if they run into financial trouble.

Some of the most common scams include callers impersonating others, e.g., an individual requesting money or asking for personal information from the Internal Revenue Service or Medicare.

The Grandparent Scam is also common, whereby a caller pretends to be a grandchild in trouble and needing money, urging grandparents to maintain secrecy.

#3: Communicate Openly About Money, Health, and Estate Plans

For some, it’s difficult talking with parents about their money. Yet, it’s important to have open dialogue about your parents’ money, health and estate plans — before they have a health emergency and become unable to express their wishes. If you find this conversation difficult, speak to us or an estate planning attorney to lead the discussion.

Depending on your situation, you could meet independently with the advisor, or have your parents present, since sometimes it’s better for your parents to hear the news from a professional rather than their adult child.

Be sure to discuss the options that include long-term care insurance — the sooner the better for lower premiums. If this isn’t financially feasible, then the next conversation is deciding who will care physically for your parents when they no longer can care for themselves. All parties involved should be present for this dialogue, including any siblings participating in future caregiving. Agree now about your parents’ care, safeguarding family relationships later.

Finally, if you’re responsible for your parent’s estate upon their passing, know the whereabouts of all their assets, accounts (including social media) and related passwords, and ensure they’ve assigned beneficiaries.

#4: Maintain Mental and Physical Health

Increased time and financial obligations created by aging parents and adult children can take a toll on your mental and physical well-being, decreasing your ability to help the very people you love.

Therefore, before paying another bill for a family member, it’s important to put your oxygen mask on first and do a few things for yourself each day – including exercising, eating well, maintaining good mental health, sleeping more and saving money.

Key Benefits:

Exercise and eating well lower the risk of disease.
Nurturing mental health regulates feelings and increases your ability to manage adversity.
More sleep improves your mood.
Saving money increases feelings of happiness.

When you prioritize these activities, you improve the quality of your life and, by extension, the lives of your parents and children. Therefore, give yourself permission to put yourself first.

#5: Meet With a Financial Advisor

Providing financial support for your parents and children often creates financial complexity when saving for retirement. We help optimize and streamline your financial situation based upon your specific goals and needs.

The Rand Group can help you:

Understand how long your savings will last.
Rearrange assets and accounts to minimize taxes.
Determine pension distribution choices.
Decide if an annuity makes sense for guaranteed income.
Run Social Security analyses for optimal benefits.
Coordinate a retirement income plan.

Once you’ve had the opportunity to review, please reach out. At the end of the day, we’re here to help you feel more confident about the financial decisions you’re making today, as you balance rising financial responsibilities that have the potential to impact your retirement.

Disclosure

The Rand Group is a team of investment professionals registered with Hightower Securities, LLC, member FINRA and SIPC & Hightower Advisors, LLC a registered investment advisor with the SEC. All securities are offered through Hightower Securities, LLC and advisory services are offered through Hightower Advisors, LLC. This is not an offer to buy or sell securities. No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable. Investors may lose all of their investments. Past performance is not indicative of current or future performance and is not a guarantee. In preparing these materials, we have relied upon and assumed without independent verification, the accuracy and completeness of all information available from public and internal sources. Hightower shall not in any way be liable for claims and make no expressed or implied representations or warranties as to their accuracy or completeness or for statements or errors contained in or omissions from them. This document was created for informational purposes only; the opinions expressed are solely those of the author, and do not represent those of Hightower Advisors, LLC or any of its affiliates. Third-party links and references are provided solely to share social, cultural and educational information. Any reference in this post to any person, or organization, or activities, products, or services related to such person or organization, or any linkages from this post to the web site of another party, do not constitute or imply the endorsement, recommendation, or favoring of The Rand Group or Hightower Advisors, LLC, or any of its affiliates, employees or contractors acting on its behalf. Hightower Advisors, LLC, does not guarantee the accuracy or safety of any linked site. Hightower Advisors do not provide tax or legal advice. This material was not intended or written to be used or presented to any entity as tax advice or tax information. Tax laws vary based on the client’s individual circumstances and can change at any time without notice. Clients are urged to consult their tax or legal advisor for related questions.