{"id":11666,"date":"2021-09-01T10:25:52","date_gmt":"2021-09-01T15:25:52","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=11666"},"modified":"2021-09-01T10:25:54","modified_gmt":"2021-09-01T15:25:54","slug":"navigating-the-sandwich-generation","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/navigating-the-sandwich-generation","title":{"rendered":"Navigating the Sandwich Generation"},"content":{"rendered":"\n

Being part of the sandwich generation \u2013 meaning you\u2019re caring for aging parents while also raising children \u2013 can create unique challenges in shaping your financial future. <\/strong><\/p>\n\n\n\n

With an aging population and a generation of young adults trying to achieve financial independence, the burdens of middle-aged Americans are increasing. <\/p>\n\n\n\n

According to the Iowa State Plan on Aging, 22-percent of Iowa\u2019s population will be over the age of 64 by the year 2030. So why does this matter to your financial planning? In a nutshell, the ageing population means more responsibility for those taking care of both parents and children. What’s more, twelve percent of parents with a child under 18 living at home also provided unpaid care for an adult, according to the Pew Research Center\u2019s <\/a>analysis of data. This can present some unique challenges, especially if you\u2019re also providing financial support on both sides. Those in this situation are known as the Sandwich Generation.<\/p>\n\n\n\n

This is problematic when trying to balance the financial goals and needs of your spouse and children against the financial needs of your parents when it comes to things like paying for health care or simply managing everyday expenses.  Adults planning for retirement are finding they\u2019re not as emotionally and financially prepared as they need to be. If you are a part of the Sandwich Generation, here are a couple ways to help navigate through financial planning.<\/p>\n\n\n\n

Balancing Your Retirement and Your Parents\u2019 Long-Term Care Needs<\/h4>\n\n\n\n

It\u2019s important to plan and save for retirement, but plans can quickly unravel when elderly parents need extra care. Long-term care is expensive. Statistics have shown that assisted living costs roughly $45,000 a year. In Iowa, long-term care costs are estimated at the following per month <\/strong>(according to Genworth’s Cost of Care<\/a>):<\/p>\n\n\n\n

Home Health Care: $4,767 p\/m<\/p>\n\n\n\n

Adult Day Health Care: $1,353 p\/m<\/p>\n\n\n\n

Assisted Living Facility: 3,847 p\/m<\/p>\n\n\n\n

Nursing Home Semi-Private Room: $6,083 p\/m (Private room: $6,479 p\/m.)<\/p>\n\n\n\n

Even at home, you could expect to pay at least $20 an hour for in-home help. Providing parents\u2019 care can have major consequences for your own retirement; from your health to your ability to afford long-term care for yourself. You can\u2019t prevent your parents from needing care; however, you can help to protect yourself by being proactive, communicating, and planning.   <\/p>\n\n\n\n

Saving More<\/h4>\n\n\n\n

If you\u2019re in the sandwich generation, it\u2019s even more important to save as much as possible. This is especially true if you have to take time off from work to care for parents. So be sure to take advantage of any and all tax-advantaged saving vehicles<\/a>.<\/p>\n\n\n\n

If at all possible, don\u2019t dip into your retirement savings\u2014whether through loans or early withdrawals\u2014to support your kids or parents. Dipping into your nest egg sacrifices the potential for tax-deferred growth. That could eventually force you to depend on your children for financial support in retirement.<\/p>\n\n\n\n

Put it in Writing<\/h4>\n\n\n\n

Document your plan and prepare necessary legal paperwork to make sure you\u2019re covered \u2014 and make sure your parents\u2019 paperwork is in order, too. If your parent suffers memory loss, they may not be able to tell you where their important financial documents are located. <\/p>\n\n\n\n

And don’t forget about insurance planning. If you’re still in the workforce, check to see if your employer offers it and if you can enroll or consider an individual long-term disability insurance plan. Having life insurance in place is also important. It\u2019s part of estate planning that many people forget but can help protect the people you love when you\u2019re no longer here. As a full-service financial firm, the specialists at Johnson Wealth and Income Management <\/a>can help you with every aspect of your financial journey. <\/p>\n\n\n\n

Taking Care of You and Your Family<\/h4>\n\n\n\n

It\u2019s no surprise that the research shows that sandwich generation adults often experience higher levels of stress than other adults and are more likely to say they always feel rushed or pressed for time. Self-care is not only essential for the caregiver \u2014 it is essential for the well-being of the entire family.<\/p>\n\n\n\n

Tips to help you care for your loved ones \u2013 without losing sight of yourself \u2013 could include:<\/p>\n\n\n\n