The Sandwich Generation: Financial Planning for Aging Parents and Your Family’s Future

Six Things You Should Know

1. Equity Markets – were down this week with U.S. stocks (S&P 500) declining -1.38% while international stocks (EAFE) edged lower by -0.36%.
2. Fixed Income Markets – were also down this week with investment grade bonds (AGG) sliding -0.12% and high yield bonds (JNK) dipping -0.10%.
3. Fed Minutes – The Fed’s July minutes showed mounting concern that persistent inflation could become entrenched, with three officials favoring a quarter-point rate increase even as the committee held rates at 3.50%–3.75%. The discussion reinforced a “higher for longer,” data-dependent outlook, suggesting rate cuts remain unlikely unless inflation cools more convincingly.
4. National Debt – The U.S. national debt surpassed $40 trillion for the first time, reflecting continued large fiscal deficits and sharply higher interest costs. The milestone is unlikely to trigger an immediate crisis, but it could keep upward pressure on Treasury yields, limit future fiscal flexibility, and heighten market sensitivity to federal borrowing and budget policy.
5. Cybersecurity Reminder – Scammers are increasingly using Remote Access Tools (RATs) along with phishing emails or texts to take control of devices like phones, tablets, and computers. Once installed, these tools can give cybercriminals access to sensitive information, including your Schwab accounts. These attacks can be hard to spot, so if something doesn’t feel right- like unusual account activity or suspicious messages- trust your instincts. If you sense suspicious activity, please call us immediately or report any concerns to Schwab at 800-515-2157. 
6. Key Insight – The biggest risk facing the Sandwich Generation isn’t necessarily financial—it’s being forced to make important financial and family decisions during a crisis because the family hasn’t had the conversations or done the planning beforehand. Don’t make your family figure this out while they’re in crisis!

Insights for Investors

By Daryl Geffken

The Sandwich Generation: Financial Planning for Aging Parents and Your Family’s Future 

Lately, I’ve been collecting some of the most common concerns our clients have. The goal being to offer perspective and tips for each topic; or put another way, some opportunities to address “What keeps you up at night?”  

Today I’d like to talk about a growing challenge facing millions of families known as the “Sandwich Generation”: How do I take care of my aging parents?  

The Sandwich Generation are adults who are simultaneously raising children, building careers, saving for retirement, and helping aging parents navigate healthcare, finances, and eventually elder care. 

While the title can sound cute, it’s often more like a vice squeezing in from both sides. The stress coming from either side can feel overwhelming in a variety of ways. In my experience, one of the hardest parts of caring for aging parents is that life asks us to change seats. For decades, our parents were in the driver’s seat. They made the decisions, protected us, and guided our family. Then, almost without realizing it, the roles shift. That’s a difficult transition for everyone. Parents may fear losing their independence, and adult children often fear making the wrong decisions. 

As a financial advisor, I’ve found that the biggest financial decisions families make often happen during times of transition—not during bull markets or recessions, but during health events, retirement, or the loss of a loved one, and having a plan in place prior to these events can help alleviate stress. 

Here are a few strategies every family should consider. 

1. Start Family Conversations Before They’re Necessary  

The most valuable planning tool isn’t a financial product—it’s communication. 

Don’t wait until a medical emergency forces difficult decisions. 

Instead, schedule a family meeting and discuss questions like: 

• What are your parents’ wishes if they need assistance? 

• Do they want to remain in their home? 

• Who will help make financial and healthcare decisions if necessary? 

• Have they shared where important legal and financial documents are located? 

These conversations can be uncomfortable, but they’re one of the greatest gifts families can give one another. The meetings are not so much about dollars and cents and who gets what. They are meant to create open and honest conversations about family goals and concerns. And they can be very powerful. One meeting I helped facilitate allowed the parents to express their fear of being a burden to their adult children. It was based on their own experience of feeling confused and obligated to care for their parents. This helped their adult children realize not only the background of financial decisions the parents made but helped them express their love and create a care plan to address their parents’ concern and share roles amongst the siblings.  

Planning early allows parents to remain in control of their future rather than having decisions made for them during a crisis. 

2. Make Sure the Estate Plan Is Complete 

Many people assume having a will is enough. In reality, a comprehensive estate plan should include: 

• A current Will or Revocable Living Trust 

• Durable Financial Power of Attorney 

• Healthcare Power of Attorney 

• Advance Healthcare Directive 

• Updated beneficiary designations 

• A review of how assets are titled 

One overlooked beneficiary designation or outdated document can unintentionally change how assets are distributed. 

An estate plan isn’t just about transferring wealth—it’s about protecting your family from unnecessary legal costs, delays, and conflict. 

3. Prepare for Long-Term Care Before It’s Needed 

One of the largest financial risks in retirement isn’t the stock market—it’s the potential cost of long-term care. 

Whether care is provided at home, through assisted living, or in a skilled nursing facility, expenses can quickly impact a lifetime of savings. 

Families should discuss: 

• Existing long-term care insurance 

• Hybrid life insurance policies with long-term care benefits 

• Self-funding strategies 

• Housing options that allow aging in place 

One of my clients related a story of receiving a phone call late at night from her mother pleading for help to get her ailing husband up the stairs. They hadn’t considered that staying in their current home could become dangerous over time. Planning years ahead provides more flexibility and more choices and frankly, relieves the stress of doing things like moving at the last minute.  

4. Think Beyond Investments—Plan for Tax-Efficient Wealth Transfer 

Many families focus on growing wealth but spend very little time discussing how that wealth will eventually transfer to the next generation. 

Tax-efficient planning may include: 

• Reviewing beneficiary designations 

• Roth conversion opportunities 

• Charitable giving strategies 

• Qualified charitable distributions (QCDs) 

• Trust planning 

• Account distributions to reduce lifetime taxes 

• Planning for heirs who may inherit during their highest earning years 

The goal isn’t simply leaving more money. It’s helping your family keep more of what you’ve worked so hard to build. 

5. Organize the Financial Picture  

One of the most valuable exercises any family can complete is creating a financial inventory. 

You should know: 

• Where accounts are held 

• Investment accounts 

• Retirement plans 

• Insurance policies 

• Monthly income sources 

• Automatic bill payments 

• Digital passwords and secure document locations 

This information can save families countless hours and reduce unnecessary stress during an already difficult time. I had a client whose father was fighting cancer. Part of what seemed to be his strategy to fight the disease was to dismiss the thought that he may lose the battle. So he refused to spend time reliving fond memories, and he also refused to provide any information about where key documents were located, or how to access passwords, or talk about final care. I don’t bring this up to judge the strategy, but to call attention to the fact that by not talking transparently about these issues earlier, when the weight of the fight was not as heavy, the family had to locate and rebuild all that information while they were grieving. We have a powerful resource to help gather all this information and more in one place that is easily accessible for use, and it’s been one of the most appreciated tools we offer to clients. 

One of the greatest values a financial advisor can provide isn’t simply managing investments. It’s helping families prepare for life’s biggest transitions before they happen. 

Whether it’s caring for aging parents, preparing for retirement, reducing taxes, planning for long-term care, or creating a thoughtful estate plan, these conversations deserve attention long before they’re urgent. 

If you’re caring for aging parents—or if your children may someday be caring for you—now is an excellent time to begin planning, and we have the tools and experience to help if you need.  

A well-prepared family may experience fewer surprises, make more confident decisions, and preserve not only wealth, but relationships. 

Thank you for joining me today. If you have questions about any of these topics or would like to begin a family planning conversation, We’re happy to help. 

Daryl and the team at TEN Capital 

Data, Just the Data

• U.S. Industrial Production – rose 0.2% in July vs expectations of a 0.3% improvement. Manufacturing output, which accounts for 78% of total production, was also up 0.2%
• U.S. Jobless Claims – initial claims fell by 6,000 last week for a total of 206,000 and below market expectations. Continuing claims rose by 18,000 to 1,799,000.
• U.K. Retail Sales – sales volume fell 0.5% in July for the first monthly decline since April. Year-over-year retail sales for the region are up 1.6%
• Eurozone PMI – manufacturing PMI rose to 52.8 in August marking the fastest pace of expansion in manufacturing activity in four years.