Life events are often the drivers for people to seek advice, and financial advice is no different. However, most people are surprised at how much financial advice they need. I was recently talking to a friend, and she mentioned her mother suffered a stroke. She was cutting back her hours at work to care for her mom, taking her to physical therapy and helping around the house. Because she also had pre-teens at home and a partner who worked long hours, she was complaining at how she felt spread too thin.
This investor is considered the Sandwich Generation—individuals sandwiched between the responsibilities for their children and their parents. She’s not alone—demographics show roughly 47 percent of parents in this age bracket also have parents older than 65 who may need care. Unfortunately, with taking time away from work to care for family, she could experience significant financial consequences—both out-of-pocket costs and long-term retirement security.
Additionally, your 40s and 50s are the decades of competing financial goals. These are generally the highest earning years before retirement with opportunities to save additional money for your future. However, at the same time, your financial goals may include sending your children to college and providing your parents with specialized care.
Despite the desire to take care of others first, Sandwich Generation investors need to set their priorities, because this life phase has the potential to last several years. First and…
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