5 Tips to Avoid the Sandwich Generation Squeeze


Susan and Derrick Friedman have reached their early 90s

just as their four children have entered their retirement

years. The Friedman siblings are part of the Sandwich

Generation; Baby Boomers who may find themselves

caught in a new financial paradox: how to retire while

caring for both elderly parents and young adult kids—

Millennials who still need financial assistance.

As life spans increase, so do the number of Baby

Boomers who fit this description. A 2013 Pew Foundation

survey found that half of the Baby Boomers have aging

parents and are raising a young child or supporting a

young adult. And at least 15% provide financial support

for both their parents and children. This new trend

threatens to squeeze Boomers’ finances and put their

retirement nest egg at risk—unless they learn how to

navigate the looming pitfalls.

That’s what the Friedman children did—with some

assistance. They spoke to a geriatric consultant and

gathered valuable tips about how they could avoid moving

their parents into a costly retirement facility. Here’s five of

the most important lessons for Boomers:

1. Protect your retirement assets—

put yourself first

Don’t sacrifice your own financial health by raiding your

retirement savings to cover college tuition or your parents’

long-term care. Consider student loans and ways to

stretch parents’ assets. In the case of the Friedmans, the

consultant explained that as income from the sale of the

family home dwindled, they might qualify at some point

for subsidized care giving, critical to living on their own.

2 Anticipate your financial needs

Plan ahead for the possibility that kids may move back

home and aging parents will require financial help,

increasing your monthly reserve.

3 Consider long-term care insurance for

your parents and you

Price policies and learn what’s covered—it may help

defray some of the enormous expense of nursing homes.

(Insurance policies contain exclusions, limitations,

reductions of benefits, and terms for keeping them in

force. Your financial professional can provide you with

costs and complete details.)

4 Research tax breaks for caregivers

If your parents live with you for half the year, you may

be able to pay for caregivers and other expenses by

claiming the dependent-care credit on your tax return or

contributing to an employer’s dependent-care flexible

spending account.

5 Set clear financial limits when kids move back

Encourage them to work or pay some rent.

If they hadn’t reached out for advice, the Friedmans’

children wouldn’t have considered applying for Veterans

Administration benefits. “Now they’re more willing to

spend on what they need—drivers and caregivers,” says

Dana Friedman Roberts. “And that’s reduced the help they

need from us.”

Connect with LPL:

Explore every option and contact your financial advisor today.



This is not an actual client or client experience. This is a hypothetical example and is not representative of any specific situation. Your individual circumstances and results may vary.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

To determine which course of action may be appropriate for you, consult your financial advisor.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This material has been prepared by LPL Financial. A registered investment advisor, member FINRA/SIPC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no

representation with respect to such entity.

Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value Not Guaranteed by any Government Agency | Not a Bank/Credit

Union Deposit

© 2014 LPL Financial LLC. All Rights Reserved. The information contained herein has been prepared by and is proprietary to LPL Financial.

It may be shared via social media in the exact form provided, in its entirety, with this copyright notice.

LPL Tracking #1-276904

Jason A. Jennings, CFP®

Managing Partner

6 W. 2nd St.

Frederick, MD 21701

240.215.4709 office

240.439.4475 fax


Visit us on:www.facebook.com/keyfinancialgrp

The CERTIFIED FINANCIAL PLANNER™, CFP® are professional certification marks granted in the United States by Certified Financial Planner Board of Standards, Inc. (“CFP Board”).