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Planning Your Finances When You’re in the Sandwich Generation

Do you want to learn more about how to plan your finances when you're in the sandwich generation? Tune in here to learn more.

(Video is 4 minutes. The full transcript is below.)

Full Transcript of video

Hey friends, the Fearless Advisor here. Today I am going to discuss planning your finances when you’re in the sandwich generation.

A good sandwich is delicious and convenient, but when you're the filling, it's not so fun.


The sandwich generation refers to adults with parents over 65, and children under 18. You also qualify if you’re financially helping an adult child. How do you balance the demands on your time, your cash, and your future? Let’s break down the big issues around your kids, your parents, and yourself.


1. Paying for kids’ college

Besides saving, there are a lot of actions you can take to lighten the load.

  • Set a realistic budget of what you can contribute and make scholarships and merit awards central to the selection criteria.
  • File the FAFSA even if you think you don’t qualify.
  • Utilize 529 plans even if college is imminent. The tax savings can be significant.


2. When it comes to your parents, transparency is key

Begin by asking your parents what they want and what’s important to them.
Once you’ve established a dialogue, you can move into more practical areas.

  • You’ll want to understand their expenses.
  • It’s good to assess their insurance coverage and get necessary documents in place – things like trusts, wills, medical power of attorney, etc.
  • Research whether there are resources that can help. Are your parents veterans? Or are there local agencies, like an elder council?


3. Prioritize taking care of yourself and your future

First, make sure you have your assets – and liabilities – protected.

  • Do you have enough life insurance?
  • Is it time for an umbrella policy?
  • Do you need long-term care insurance?


Second, build a flexible cash flow plan. A cash flow plan links your short-term money flows to your long-term plan, so you can see everything and then make decisions to help you achieve your goals.

Should you refinance debt? Is your investment philosophy designed to outpace inflation? Should you redeploy assets to different investments? These are all strategies that a cash flow plan can help you assess.


Third, dismiss the temptation to decrease what you’re putting into your retirement savings or put it off completely. It’s crucial to remember that the money you save now is more valuable than the money you put in later because it has longer to grow. And tax-deferred retirement savings lower your taxable income – and your tax bill.

Making everything work can be difficult, but there are financial planning strategies that can help. If you are interested in a trusted advisor helping you create and implement your financial plan, please reach out to us here at F5 Financial Planning.


Thanks for joining us!


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Josh Duncan

Josh Duncan

Josh Duncan is a trusted Financial Advisor with F5 Financial. He writes about a variety of financial topics and insights. Read his articles here.