Find out about health care. Try to learn about your parents’ health insurance coverage. And have they done anything to protect themselves from the potentially catastrophic costs of long-term care, such as an extended nursing home stay? You may not be able to do a great deal for them in these areas, but at the least, you may be able to get them to take some positive action on their own behalf.
Don’t ignore your own retirement savings. Even if you can afford to provide some financial support to your parents, don’t shortchange yourself when it comes to your own retirement savings. You don’t get a “do-over” when it comes to putting away money for retirement, so contribute as much as you can afford to your IRA and your 401(k) or other employer-sponsored retirement plan.
Prioritize your investment choices. If you would like to help your children go to college, you might want to consider a college savings vehicle. Still, you may need to prioritize your investments. After all, your children will likely have a variety of options – such as loans and scholarships – to help them pay for school, and they may also be able to reduce costs substantially by going to a community college their first two years. But you are basically “up against the clock” when it comes to saving for retirement, so you’ll want to take that into account when allocating your investment dollars.
Belonging to the sandwich generation can certainly produce feelings of anxiety. But by following the above suggestions, you may be able to reduce some of this stress. And by doing so, you can help your parents, your children – and yourself.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.