New Financial Burdens Necessitate Crafted Solutions from HCR Wealth Advisors
The days of working thirty years and then receiving a pension to live for the rest of your life are long gone. Today, you need more than a pension to handle retirement living expenses, and now you may need a lot more to keep up with the expenses of two generations.
Some people are stuck in what is being called the “Sandwich Generation.”
This term is used to describe people in their late 30s to early 50s who feel a responsibility to support their aging parents as they’re facing financial troubles during retirement. At the same time, those adults still need to save for their own retirement and provide for their college-aged children.
Make Retirement a Priority While Being Practical
A common mistake made by adults is tapping into their retirement too soon. Although tempting, dipping into a retirement fund too soon not only puts those later years in jeopardy, but it also can easily put you in a position of having to rely on your children for financial support. HCR Wealth Advisors recommends stashing away any discretionary income to the fullest extent possible and always contributing to the maximum allowed through your company’s retirement program.
Assess College Tuition Obligations for Future Periods Ahead
According to the National College Board, college costs exceed $20,000 for public college and over $46,000 for a private college. HCR Wealth Advisors has seen a rise in parents who are reopening their doors for children to move back home after graduation, due to tuition debt. Parents need to understand that there is help with tax-advantaged accounts before it gets to that point.
Parents’ Financial Picture Needs to Be Clearly Understood
What happens when the retirement money runs out? What about healthcare? These are questions that @HCRwealth advises younger clients of aging parents to ask themselves. Studies have shown that longevity has increased with a 45 percent probability that children will outlive the age of their parents. Staying on top of an aging parents’ financial situation is absolutely vital.
There is help available for those who find themselves in the “Sandwich Generation.” For more facts about HCR Wealth Advisors’ financial solutions, read this published article from Analyst of Finance.
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