Sandwich Generation- Protect Yourself Financially


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Financial Advisor Christine Schmitz discusses ways to protect yourself financially when caring for aging parents and your own children. Topics include long term care, financial planning techniques and insurance options

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Sandwich Generation- Protect Yourself Financially

  1. 1. The Sandwich Generation-Taking Care of Aging Parents Presented by Christine Schmitz, CPA, CFP®, LTCP
  2. 2. The Sandwich GenerationWe don’t choose to be a member of the sandwich generation… It chooses us!
  3. 3. What is the “Sandwich” Generation?The Sandwich generation refers to thosewho support children (at any age) and at thesame time support or care for parents. Because most of us are responsible adults, we don’t runaway from caring for our parents or children when they are in need.
  4. 4. Support Means Different Things to Different PeopleChildren or parents residing with youNon-residential financial supportSupporting children who are in college by paying tuition billsAssisting children with purchasing a home or renting an apartment
  5. 5. Or Support Could Mean…Assisting with the care of grandchildren so your children can workAssisting aging parents with personal care or errandsAssisting aging parents financially with living expenses
  6. 6. What’s All the Fuss About?Demographic trends have led to increasedattention to the Generation in recent years:• Increased life expectancies- more middle aged people have living parents• Birth rates are lower- parents have fewer children to share the burden• Adult children are more likely to live further away from parents, complicating the situation
  7. 7. By the NumbersAn AARP report found that 44% of 45-55year olds had both at least one living parentand one child under the age of 21.
  8. 8. By the NumbersThe Bureau of Labor Statistics found that1/3 of women could be defined as belongingto the Sandwich Generation.Statistics from the Monthly Labor Review 9/2006
  9. 9. By the Numbers• Financial assistance given on average: – $10,000 a year• Time spent on average: – 1,350 hours per year• They are responsible for $18 billion dollars in intra-family transfers.• They give 2.4 billion hours of time.Statistics from the Monthly Labor Review 9/2006
  10. 10. So How Can We Prepare for the Inevitable?It may be a tough conversation, but talk toyour parents about their financialsituation. Financial problems can goundetected for years. Be tuned in to their saving/spending habits. Familiarize yourself with their insurance coverage. Have any of their policies lapsed? Help your parents do an insurance policy check- up.
  11. 11. What steps have they taken to prepare for possible medical care needs?Do they have long-term care insurance? – What are their options at this stage? – Traditional long term care policies versus “hybrid” life/long term care policies
  12. 12. What steps have they taken to prepare for possible medical care needs?Are your parents resistant to long-term care insurance? » It may be in your best interest to buy LTC insurance for them.
  13. 13. Taking Action• Long term care insurance premiums are rising• Some insurance companies have left the LTC market• Government support is uncertain
  14. 14. Questions?Christine Schmitz, CPA, CFP®, LTCP Senior Financial Advisor Glass Jacobson 410.356.1000