The term “Sandwich Generation” has been floating around for about a decade. It is used by financial advisors to describe people who are typically in their late thirties to early fifties that are financially supporting their aging parents and college-aged kids.
According to the Pew Research Center, a nonpartisan and data-driven think tank, one in seven middle-aged adults are supporting their aging parents as well as their own children.
Many of those in this situation are now experiencing those financial burdens, and those who want to prevent it, are seeking help from financial advisors like HCR Wealth Advisors to alleviate the financial burdens and to find viable solutions.
However, people can take matters into their own hands with a few practical tips:
- Put money away early for retirement regardless of present responsibilities – pay “yourself” first through a retirement savings commitment.
- Never leave money on the table such as company-matched retirement contributions through the workplace. A person should always try to contribute the maximum amount, which also has tax-deferred advantages.
- Invest where feasible with discretionary income. Compound interest is a bargain that people often leave untapped. That is money received on top of money already gained.
- Use tax-advantaged accounts for saving for college tuition. With tuition continuing to rise and no end in sight for a decrease, it is advantageous to lessen student debt. If not, the spare bedroom at an aging parent’s home might become occupied after graduation.
With people living longer, there is a sizable possibility that one parent will outlive their retirement fund. HCR Wealth Advisors also advises younger clients to familiarize themselves with an aging parent’s financial portfolio to prevent unexpected and uncertain times.
Since HCR Wealth Advisors has been in business, the firm’s advisory model has remained the same, develop personalized financial strategies tailored to each client’s needs and goals. Follow @HCRwealth on Facebook today.
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