The Sandwich Generation

By Private Vista on September 8, 2021

Do you find yourself feeling pulled in multiple directions, especially between your children and aging parents? If so, you may be part of the Sandwich Generation – defined as “Adults who have a living parent age 65 or older and are either raising a child under 18 or supporting a grown child”. In a recent AARP survey, 56% of “Sandwichers” provided more than $1,000 to an adult child, and 54% provided more than $1,000 to an aging parent. If you find yourself in this situation, here are four things to think about before they become an issue:

1) Establish a Financial Plan

Financial Planning can be more complex for those caring for aging parents or grown children since they may not have been planning for this all along. When finances are intertwined with multiple family members, you may need to insert yourself in other family members’ Financial Plans to ensure they’re trending in the right direction.

2) Keep an Eye out for Medical and Financial Scams

According to the National Council on Aging (NCOA), older adults lose an estimated $3 billion each year to financial scams. Some of the most common scams include callers impersonating others, e.g., an individual requesting money or asking for personal information from the IRS 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 an 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’re responsible for their estate upon their passing, know the whereabouts of all their assets, accounts, passwords, and ensure they’ve assigned beneficiaries. If you find that they are resistant, consider hiring a professional advisor or attorney to help deliver the message.

4) Maintain Mental and Physical Health

Increased financial obligations created by aging parents and adult children can take a toll on your mental and physical well-being. Therefore, before paying another bill for a family member, first do a few things for yourself each day, including exercising, eating well, maintaining good mental health, sleeping more, and saving money. When you prioritize these activities, you improve the quality of your life and, by extension, the lives of your parents and children.

We live in a complex world today, where even the solutions can be complex. In many cases, Aging Parents will add one of their children to their checking, saving, or investment account to “make the estate process easier”. Unfortunately, changing the title to an asset or adding a family member as a joint owner may further complicate the issue. As these conversations come up, consider talking to a professional about the best ways to manage your parents’ affairs.

Article By: Randy Porzel, CFP®, RICP®. Randy is a Partner and Lead Advisor at Private Vista LLC. He began his financial planning career as an intern and worked his way up through every job at the firm. Randy finds joy in taking clients through Private Vista’s planning process, using tools that answer questions and clear uncertainty so that clients can look forward to their idea of an enriched life. In his free time, Randy enjoys serving on the boards for the Chicago Lighthouse for the Blind and The Darien Lions Club, whose mission is to serve those in the community with visual impairments.

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