For Your Information
Sandwich Generation: Caught in the Middle

Your children are watching and learning from you. Have an open dialogue about the importance of financial planning. Show them how to investigate before investing. Children raised with money management skills will be better prepared for their own financial success. 

As parents, you know that children are a significant financial obligation. Often, parents of a college-bound child resort to utilizing their retirement nest egg to finance their child’s college education. This is not always the best solution. There are other resources available for educational expenses such as scholarships, grants, loans, work-study programs and various other payment options.

Checklist

Teach your children about basic financial concepts and model responsible money management.
Consider the impact of using your retirement assets for your children’s education.
Decide if you are going to pay for your children’s education. Talk to your children about exploring education financing options.
Set financial ground rules and expectations if adult children (boomerang kids) move back home.

As a member of the Sandwich Generation, you may feel pressured to make quick investment decisions to make up for insufficient assets as you near retirement. As a result of this pressure, you may miscalculate the level of exposure to risk you need in order to achieve your financial goals. Understanding the risks of investing can be difficult. Although an investment may be legitimate, it may be not be right for you.

Checklist

Organize your financial records including brokerage statements, bank records and insurance documents.
Start retirement planning early. Review your investments in relation to your financial goals and risk tolerance.
Inquire whether your broker or financial adviser is registered to sell investments or provide advice.
Create a realistic budget and control your debt.

As a member of the Sandwich Generation, one of your responsibilities may be to protect your elderly family members and their financial future. A primary concern is making sure your elderly family members are free from investment fraud. If an elderly family member makes a bad investment decision, they may need more support from you in their later years. Providing protection to family members who wish to remain financially independent begins with knowing and having access with their permission to that person’s financial information. It is easier to obtain important financial information in advance, rather than later in a crisis situation.

The elderly are a favorite target of con artists because of their age and accumulated wealth; therefore, it is important for you to understand and be aware of your elderly family members’ financial situation. Educate them on how to identify and avoid investment fraud.

Checklist

Initiate a dialogue with your elderly family members about their financial matters.
With their permission, have copies of their estate planning documents and make sure all forms are current.
Know the location of assets (insurance documents, retirement plans, and other investments) and ensure you can access them if required.
Know their advisers and sources of information (accountants, doctors, financial planners).