I’ve spilled much ink about how we are the Sandwich Generation, raising both our own children and increasingly our Mom and Dad, too. It’s a natural evolution and something that we can recognize as fundamental as the sun rising in the east. The level of support required within the family is of course circumstance-dependent, but there are some broader themes, too.
Emily Stewart of Business Insider has been exploring many of the same topics and issues we care about, and she deserves the shout. Her recent article Millennials are bailing out their retired parents made me sit up and pay attention, so let’s dive in.
Millennials and Gen X are doing more of the yeoman's work for the family these days. But are Mom and Dad? “According to a Vanguard estimate, just 40% of boomers between 61 and 65 are on track to afford their lifestyles in retirement. Americans believe they need $1.6 million to comfortably retire, according to a survey from Charles Schwab. Boomers, on average, have a fraction of that saved up.”
And the implications of such a reality? “For families, it's a conundrum. Suddenly, adult children are tasked not only with helping with medical appointments and grocery runs — they're also scrambling to support their aging relatives financially, potentially blowing up their own savings in the process. It's a case of intergenerational financial contagion: One generation's under-saving rewires another's math and rewrites their future.”
And so, what to do? "You can get a loan for school. You can't get a loan for retirement," says Suzanne Norman, an executive coach and financial literacy educator.” Of course Ms Norman is right, but there are options. Forward Inheritance has phenomenal partners like CHEIFS, Watermark Capital, and LTCareNav who may be able to help.
But even before we figure out how to optimize the estate to provide for Mom and Dad as well as the Next Generation, we first need to organize. "When you plan for yourself, you're also planning for your kids, because if you're not taking care of yourself, you're forcing your kids to be your insurance company," says Laurence Kotlikoff, a professor of economics at Boston University.
Is it the most exciting work after a long day or week at the office? No, but hard to imagine more impactful or critical work for the family. It is foundational to family wealth and legacy. It is part of being an adult. And there are many folks who can help. Let’s move our families forward…