Sandwich Generation- Protect Yourself Financially

The Sandwich Generation- Taking Care of Aging

ParentsPresented by

Christine Schmitz, CPA, CFP®, LTCP

The Sandwich Generation

We don’t choose to be a member of the sandwich generation…

It chooses us!

What is the “Sandwich” Generation?

The Sandwich generation refers to those who support children (at any age) and at the same time support or care for parents.

Because most of us are responsible adults, we don’t run away from caring for our parents or children

when they are in need.

Support Means Different Things to Different People

Children or parents residing with youNon-residential financial supportSupporting children who are in

college by paying tuition billsAssisting children with purchasing a

home or renting an apartment

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

What’s All the Fuss About?

Demographic trends have led to increased attention 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

By the Numbers

An AARP report found that 44% of 45-55 year olds had both at least one living parent and one child under the age of 21.

By the Numbers

The Bureau of Labor Statistics found that 1/3 of women could be defined as belonging to the Sandwich Generation.

Statistics from the Monthly Labor Review 9/2006

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

So How Can We Prepare for the Inevitable?

It may be a tough conversation, but talk to your parents about their financial situation. Financial problems can go undetected 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.

 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

 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.

Taking Action

• Long term care insurance premiums are rising

• Some insurance companies have left the LTC market

• Government support is uncertain

Questions?

Christine Schmitz, CPA, CFP®, LTCP

Senior Financial AdvisorGlass Jacobson410.356.1000

Christine.schmitz@glassjacobsonIA.comwww.glassjacobson.com