Wealth management and the sandwich generation

A few things to consider

Written by Nitin Manohar
September 28, 2017

There is nothing as valuable as family. At the end of the day, it’s the reason we all work so hard – to create a life with love with the people who mean the most to us. When you have a demanding executive role, own a business or run a medical practice, work-life balance can be particularly challenging. This is especially true if you have children – those early years are wonderful, but also truly exhausting and chaotic. We’ve been there, and we get it!

For many Canadians, that already-chaotic time period of raising a young family is compounded by responsibilities to aging parents who require emotional, physical and/or financial assistance. According to Statistics Canada, over 700,000 Canadians aged 45 – 64 are a part of this ‘sandwich generation’ – adults who care for both children and older relatives. This creates a delicate balancing act and can be incredibly demanding on a number of levels. No matter how much you love your parents, the shift from child to caregiver is a difficult one and can create significant stress. This responsibility, coupled with the responsibilities of raising a family and managing your professional life, is a lot for anyone to navigate.

This is why our wealth management services are designed to be comprehensive, personalized and as turnkey as possible. We strive to make our clients’ lives easier, both by providing convenient service and by delivering results that preserve and grow your wealth over time. We take care of your finances so you can focus on what matters: your life. Here are a few things to consider if you’re a part of the sandwich generation:

Your Financial Plan

In addition to creating a wealth management and investment plan that considers your family, your business and your goals for the future, we’ll make sure your parents’ and children’s needs are considered. This ensures that additional financial responsibility is planned for and does not become an unexpected burden. The goal is to preserve your lifestyle and keep sight of your own goals while preparing for the needs of your dependents (both children and aging relatives). A personalized financial strategy can make this happen with minimal taxation and

Your Parents Financial Plan

Whether your parents have a wealth advisor or would like to meet with one, it’s good to collaboratively take an inventory of their finances (assets, income, debt, insurances) and help them plan for the future, including medical expenses, living arrangements, necessities of life and lifestyle preferences. This way, a clear plan can be agreed upon and set into motion, whether that involves their own money or some of yours.

Insurance

Insurance can be a powerful tool in protecting your wealth and planning for the future, and should be considered for yourself, your parents and even your children. Ask us what might benefit your family – each situation is different, but we can determine whether or not your insurance needs are being met.

Power of Attorney

If you’ll be caring for your parents individually or with your siblings, it’s important that legal documentation is put into place. POAs should cover both medical and financial roles. Ideally, this is done while your parents are still in good physical and cognitive health, not in reaction to an emergency situation or health crisis. While the conversation may be awkward, have it now – it’s far more complicated to do it later. Remember: the same sentiment applies to wills and estate planning!

Your Kids

While this falls under your financial plan, it’s important to note that saving for your children’s education is a critical factor in surviving those sandwich generation years. Post-secondary education is a large expense that should be carefully planned for, particularly if you provide financial support to an aging relative or hope to eventually help your children put a down payment on a home. Ask us how to best structure your investments to support both as needed.

If you have any questions or would like to discuss your wealth management needs, please contact us – we’d be pleased to arrange a complimentary, confidential review of your financial plan.