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Five Tips for the Sandwich Generation Juggling the Needs of Your Kids and Your Parents Without Losing Your Balance

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BY RICHARD BLOOM

In today’s fast-paced world, life can be hectic – especially if you’re among the growing number of adults caught in the middle known as the sandwich generation. According to the T. Rowe Price 2019 Parents, Kids & Money Survey, more than one in three parents with kids between the ages of 8 and 14 is also caring for an aging family member. Of those, nearly 70% have an aging parent or relative living under the same roof.1 Being a dual caregiver can cause emotional stress and even financial strain, but planning ahead and seeking out the support you need can help you find – and maintain – your balance.

Here are some tips for living – and thriving in – the sandwich life.

1. Simplify where possible.

Simplifying your finances is a good first step in knowing exactly where you stand in terms of being able to afford your own retirement and still support your kids and parents. Many of us have our money spread across multiple bank accounts, brokerage accounts and even retirement accounts. Consolidating these accounts may make it easier for you to manage your financial life, removing a layer of stress and potentially making your assets work more efficiently, guided by a cohesive investment strategy.

2. Break the ice on family finances.

In many families, money is a taboo topic. But as your parents age and your children grow up–and sometimes boomerang back to the nest–having frank conversations about the family finances is a must. Take the brave step of asking your parents about their finances and how they would like their affairs to be handled if they are no longer able to make important decisions about their money or health. And talk to your children about your expectations when it comes to what you will pay for and what you expect them to pitch in. This is especially important if your grown-up children move back in with you.

3. Don’t be afraid to delegate.

You don’t need to shoulder all of the responsibility alone. Whether it’s finding a reliable babysitter for your kids, a trusted caregiver for your aging family member or someone to help around the house, delegating to others can help to ease the load. Talk to you kids about chipping in with household chores, or share caregiving responsibilities with a sibling. If you need outside help, ask family members and neighbors for recommendations or referrals. There are also websites and agencies that can help you with finding good care.

4. Explore all your options.

In addition to parental leave benefits, an increasing number of employers are offering caregiver support as part of their benefits package. You may also be able to talk to your employer about flexible work arrangements.

According to the Home Care Association of America and the Global Coalition on Aging, 70% of adults over age 65 will require assistance with their daily activities at some point.2 Nursing home stays or in-home care can be expensive, and another option to consider is long-term care insurance.

5. Take care of yourself.

You want to give your all to the people who rely on you. But, remember, in order to provide the best possible care for your kids and your parents, you need to be at your best. That means carving out time to recharge your physical, emotional and mental batteries so you can make the time you give to your family more meaningful and effective. Just as flight attendants remind you to put on your own oxygen mask first in the event of a loss in cabin pressure, prioritizing yourself is sometimes part of maximizing your ability to help those around you.

Whatever challenges you face, working with a Financial Advisor who understands your circumstances and priorities can help you formulate a plan that is designed to safeguard not just your finances, but also your family.

FOOTNOTES

1. Money Confident Kids. 2019 Parents, Kids & Money Survey Results.

2. Home Care Association of America and Global Coalition on Aging. Caring for America’s Seniors: The Value of Home Care. Available here.

DISCLOSURES

Article by Morgan Stanley and provided courtesy of Morgan Stanley Financial Advisor.

Richard Bloom is a Financial Advisor in 1290 Avenue of the Americas, New York, NY 10104 at Morgan Stanley Smith Barney LLC (“Morgan Stanley”). He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597.

This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be suitable for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.

Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning, charitable giving, philanthropic planning and other legal matters.

Richard Bloom may only transact business, follow-up with individualized responses, or render personalized investment advice for compensation, in states where he is registered or excluded or exempted from registration, http://brokercheck.finra.org/Search/Search.aspx.

© 2019 Morgan Stanley Smith Barney LLC. Member SIPC. CRC2836810 12/2019

Getting a Strong Start to 2018

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By Scott M. Kahan

It’s almost spring and now is the time to give your finances a “spring cleaning!”

With the stock market sell off and continued volatility after record highs, interest rate increases, new tax laws and the ongoing uncertainty as to what is going on in Washington, now is the time to organize. Here are a few quick things to address to get started.

  • Review your portfolio. With the return of volatility in equity prices and rising interest rates, it’s probably a good time to review your asset allocation. A simple way to re-balance your portfolio is to first set what percent of your portfolio should be in each asset class. Then when reviewing your portfolio, the sectors that have gone up will be over weighted and should be reduced, while the underperforming sectors will be under weighted and can be added to. If you follow this practice, it forces you to sell high, buy low and take the emotions out of investing.
  • Review Your Taxes and Cash Flow. New tax laws have ushered in much confusion. With a limitation of $10,000 for SALT deductions, (State and local tax), along with various other impactful changes, now is the time to review your 2018 taxes. Even though you may be in a lower tax bracket, you still could end up paying more tax due to the lower allowed deductions. Check your withholding tax to make sure you are not under or over paying your taxes during the year. Then look to see if you are fully funding your retirement plans and look for all possible deductions to minimize your income tax. When you file your 2017 taxes, make sure to do a projection for 2018 as well.
  • Review Your Estate Planning. When was the last time you looked at your wills and other estate planning documents? Make sure all beneficiaries are in place in retirement accounts. Review to make sure you have named guardians for minor children. If you have avoided setting up your estate plans, now is the time to address this important issue.

A simple review can help bring focus to your overall financial picture. A qualified Certified Financial Planner Professional can help ensure your financial affairs are consistent with your current and long-term goals and objectives. Get a strong start for 2018!

Taking the Stress out of Money Management

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Scott M. Kahan, CFP®, hard at work. Photo by Matt Smith
Scott M. Kahan, CFP®, hard at work.
Photo by Matt Smith

As the average layperson might attest, financial planning can be quite the daunting task. You may feel so overwhelmed with all the other business associated with your child going to college, or facing that impending retirement, that perhaps you may simply forget the financial aspect until it’s too late. Maybe you fall into that group of people who are so confused by the jargon that they put it off altogether in fear of it being too complicated to handle. Or, you may be one of a few who think they’ve got it all covered with their basic number crunching and investment portfolios, but who doesn’t yet realize there’s so much more to do. Whatever your reason, financial management expert Scott M. Kahan, CFP®, wants you to rest assured that he and his staff at Financial Asset Management Corporation know exactly how to help!

Since 1986, Kahan, founder and President of FAM, has been serving the good people of Chappaqua (and some in Manhattan, where also has an office) with the time-tested belief of putting his clients’ needs first.

“Being a small firm, we get very involved with our clients’ lives [and] we take things very seriously,” he says, of FAM’s approach. “It’s a personalized service that allows us to fully understand our client’s goals and objectives. We’re here to work for the client…With us, what you see is what you get.”

And to that end, “what you see” is quite extensive. The firm offers comprehensive wealth management, including both financial planning (cash flow, saving for college, tax planning, retirement planning, and insurance review) and investment management, all with that same emphasis of valuing clients’ needs above all else. “We’re a fee-only firm [meaning we don’t generate commission; our compensation comes solely from our clients], and we act solely as fiduciaries.” Acknowledging “money can cause a lot of stress,” he adds that “our goal and role is to alleviate that stress through conversation.”

The first introductory meeting at FAM is completely free, allowing potential clients and advisors alike to gauge how they can help each other. “We describe financial planning as a road map,” Kahan explains. “If you want to [drive] from New York to California, you have to plan out your trip.” Similarly, that initial meeting with a financial advisor “will address where [a client] wants to go, what the obstacles are, and how they can successfully [evade them].”

Indeed, it’s quite the lengthy process, but that’d be the case anywhere…and there’s no question clients appreciate the one-on-one, ethical approach. “[Clients] know that if they come and work with us, they’re going to get honest answers,” Kahan continues. “We will give [them] the education they need, and provide as many resources as they need until they feel comfortable.”

For Kahan, a belief in “doing what’s in the client’s best interest” isn’t limited to his work professionally; it also holds great significance in his personal relationships with people throughout the community. “For me, it’s about also giving back,” Kahan continues. “As a Chappaqua resident for the last 22 years, [with] two kids that went through the school system and graduated from Greeley, I take a lot of pride in this community…I think it’s important to get involved and give back.”

And give back he has. In addition to his professional offerings at FAM, he previously served as Treasurer on the Board for the Horace Greeley Scholarship Fund for two terms, spanned over 11 years. (“It’s a great organization that helps make up the difference for Greeley graduates to pay for college.”) With the help of a local college financial director, Kahan also presents an annual seminar at Horace Greeley High School as part of their Financial Aid Night to help parents prepare and plan to pay for college, noting, “Besides retirement, [paying for college] is probably the biggest financial concern parents have.”

In addition to his local work, Kahan is also currently a Trustee for the Foundation for Financial Planning, a national organization which provides funding for the military and other underserved groups to receive pro bono financial planning.

Whomever he is advising, Kahan maintains that when done properly and correctly, financial planning can really work. Judging by his approach, it’s easy to see why his clients agree: “They just feel relieved, getting up and walking out knowing that a) they have someone to talk to about their financial issues and b) they know someone is going to provide objective advice and help them reach their goals.” And knowing he’s played a part in making it happen, Kahan simply couldn’t be happier.

Financial Asset Management Corporation is located at 26 S. Greeley Avenue in Chappaqua. For more information, call 914-238-8900 or visit www.famcorporation.com.

Matt Smith is a writer and regular contributor to The Inside Press. For further information or inquiry, please visit www.mattsmiththeatre.com.

Women and Finances

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Scott Kahan
Scott Kahan

By Scott Kahan

You get in your car knowing you left plenty of time to arrive at the restaurant for your eight o’clock dinner reservations. Somehow, on the way you manage to make a wrong turn and get lost. Assuming you don’t have a GPS, what do you do? The stereotypical answer, which is probably true more often than not, is that men will keep driving around hoping to find their way. Women, on the other hand, will stop and ask for directions. So when it comes to finances and financial planning, is it any different?

Financial planning is about identifying your goals and objectives. Once this is done, the next step is to come up with the “road map” of how you reach your destination. Studies have shown that women deal very differently with their financial planning than men do.

Women often face more financial challenges than men as a result of lower salaries, prolonged career breaks, and relative longevity. Women tend to have smaller pensions or 401(k) balances, on average earn less than men while working, and are more likely to have part-time jobs with limited retirement benefits. Women also leave the workforce more than men to become family caregivers, further reducing their ability to save.

Whereas men are often more confident that they will have enough retirement income to live comfortably, women tend to be less confident in their knowledge about financial products and services and that they are on the right path financially. So logically this leads women to ask additional questions with the goal to become more knowledgeable about finances.

This way, when making financial decisions, having the information allows you to be more confident in that decision. When it comes to financial planning, being more confident with your decision making process allows you to stay the course and not panic with every headline or market drop.

So the next time you are lost and need help, stop and ask questions. Of course make sure the person you are asking is knowledgeable. By doing this, you have a much better chance of reaching that goal, whatever it may be.

Scott M. Kahan, is a Certified Financial Planner® professional and President of Financial Asset Management Corporation, a fee-only wealth management firm located at 26 South Greeley Avenue in Chappaqua. Call Scott Kahan at 914-238-8900 or write to skahan@famcorporation.com.