INDIANAPOLIS: The “sandwich generation” is a term coined for families squeezed between taking care of an aging parent and raising young children or supporting adult children.
This is becoming all too common with about one-in-seven middle-aged persons taking on financial responsibility for both a parent and a child, according to the Pew Research Center.
If you find yourself “sandwiched,” you may discover that your own retirement is at risk. Here is the third step to getting back on track:
3. Taking financial inventory: Families commonly think their parents were paupers, only to find out they saved very well. Besides having the ability to help with their current circumstances, there might be a looming estate-tax problem in the future. On the other hand, many families have believed for decades that their parents were well off financially, only to discover they were broke and that they had unknowingly become their parent’s financial plan.
The following is a short list of information you should store in a safe place:
- Incomes and survivor benefit options on these incomes if both parents are living
- Monthly operating expenses
- Long-term care policies
- Death and marriage certificates for previous spouses
- DD2-14 (discharge paperwork) to research potential benefits for seniors
- Financial information: Checking accounts, CDs, brokerages, qualified accounts, and annuities
- Real property including land, primary residences and other property