HCR Wealth Advisors is a registered investment advisory firm. The company’s blog provides insight to any and all who choose to read the articles published on it.
A thought-provoking article may prove insightful to the “sandwich generation” of middle-aged adults dealing with significant financial strains. A lot of adults find themselves in a financial position to support their aging parents, themselves, and their children at the same time. With the “sandwich generation,” parents must cover costs associated with caring for the children and their elderly parents. Unlike generations past, elderly people may find their retirement budgets much tighter for a host of reasons. Unrecovered losses from the 2008 market collapse combined with increases in the cost of living have led some elderly parents to ask their adult children for financial assistance. Without the help of their children, these elderly people might not be able to make ends meet.
Unfortunately, covering the costs of both parents and kids makes things troublesome for the “sandwich generation.” And the members of that particular generation do have their own expenses to pay for as well.
The worst thing members of the “sandwich generation” could do is nothing. Simply collecting a paycheck and paying bills for all parties can eventually create a disastrous financial situation. Limited funds eventually hit the proverbial wall and run out. Careful budget planning must be done to address everyone’s expenses. With older parents, those expenses need to be carefully evaluated. Since you must put money into your children’s college funds and your own retirement savings account, eliminating expenses unnecessary for retired adult makes sense.
Don’t consider it selfish to put your own financial needs first. Remember, if you are not in a good position to care for yourself financially, you won’t be able to care for others.
@HCRwealth provides personalized investment strategies to help clients reach their financial goals.
HCR Wealth Advisors is not affiliated with this website.