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April 2025
Capital Markets
Revisions Smell of Stagflation
LPL’s Chief Economist, Dr. Jeffrey Roach discusses the latest readings on the consumer, stagflation, recession risks and what it means for the economy.
Did You Know?
Financial Planning for the Sandwich Generation
Quite the Pickle: The Challenges of Being in the Sandwich Generation
Let’s break down the elements of a sandwich.
We had a client with four kids – three of whom were in college and one of whom was in middle school. Her father – a widower – had triple bypass surgery after which he required overnight care. All her siblings lived too far away to pitch in and help.
While she was still married, she and her daughter moved in with her dad so she could provide that care. She had a job where remote work wasn’t possible and frequently had to take off work to take her dad to doctor appointments. She did all his grocery shopping, cooked all of his meals, and helped him bathe.
Add in having to take her daughter to school, sports practices (and games), and music lessons.
This isn’t your average sandwich. In fact, it’s quite the pickle, no?
Pew Research Center reports that about 23 percent of U.S. adults are caring for both an aging parent and their own children, just like our client. They call these people the “sandwich generation” because they’re sandwiched between caring for two generations. When you drill further down into the data, around 54 percent of U.S. adults in their 40s have a parent aged 65 and older and children under 18 in their homes. And these caregivers are evenly split among men and women.1
Like our client, a majority of Americans feel responsible for caring for their aging parents, according to a study from U.S. Bank.2
The sandwich generation effectively runs two households. And that can lead to financial strain. But we offer you some takeaways to take care of your financial health while also taking care of your kids and your parents.
The Financial Challenges of the Sandwich Generation
MassMutual reports that 27 percent of people caring for both their parents and children causes emotional and financial distress.3
While these dual caregivers are primarily Gen Xers, more and more millennials are becoming part of this group, according to USA Today.4 And millennials came into adulthood during the Great Recession and even though, according to Investopedia, this generation is building wealth, they’re still financially stressed.5
Both Gen X and millennials have financial challenges outside of taking care of their parents - including student loan debt and planning how to pay for their kids' college. Plus, there's the recent historic inflation and subsequent rising prices on groceries and other necessary items.
Add to that Forbes reporting that a quarter of adults provide financial support – in addition to care – for their parents. Furthermore, Forbes reports that while children require more money and capital to take care of, aging adults require more time and labor to take care of, which can in turn lead to missed paid hours at work.6
Strategies to Employ if You're in the Sandwich Generation
When you find yourself in the position of caring for three generations, it might be helpful to employ some strategies to alleviate the stress. Some strategies to implement include:
Revisit, reestablish, and maintain a clear budget. Revisit your budget to see what you could potentially cut out or rearrange. This is important especially if you need to make room for some of your parents’ expenses.
Continue to save for retirement, if possible. Saving for retirement if you’re caring for multiple generations can be complicated. But it’s critical that you continue to build up your retirement accounts and plan for the future, if you have the means.
Ann Dowd, CFP, of Fidelity Investments recommends contributing the maximum to your workplace 401(k) to receive your company match. She also advises to not dip into your retirement savings to cover costs for your parents or your kids. 7
“Caring for aging parents comes with many imponderables,” Dowd said. “Though your heart may put your loved ones first, they’re not responsible for your retirement security – you are.”7
Rebuild an emergency fund. If you’ve found yourself caring for an aging parent and having to help with their medical expenses or modify your home so it’s safer for them, you might have depleted your emergency fund – or at least made a dent in it. You can focus on rebuilding your emergency fund if you have the means.
Prepare for your kids’ college. The cost of college goes up every year. But there are multiple ways you can financially prepare for college, including 529 college savings plans, custodial accounts (like the Uniform Gifts to Minors Act account), and employing tactics like choosing more affordable colleges or having your kids get their core classes done at a community college.
Get in touch with your financial professional. Every person in the sandwich generation has unique challenges. And we can help you navigate your unique situation in a way that works for you. That’s why we are here!
Plan Ahead if You’re Not There Yet
Eighty-six percent of parents surveyed by Mass Mutual said they didn’t want their kids to take care of them. And 41 percent of respondents say they are concerned about their ability to help pay for care for their elderly parents.8
And while your parents probably have the best of intentions of you not taking care of them, being part of the sandwich generation is a very real possibility – and one you can prepare for ahead of time if your parents are still in good health right now. Sit down with them and ask about their preferences. Vanessa Martinez, CEO and founder of Expressive Wealth, notes that these difficult conversations can be framed in a way where you’re asking for help for yourself, so you don’t potentially offend them. Say something like, “Mom and Dad, I’m planning for my long-term care and I can’t decide whether I want to be in a facility or modify my home and have in-home health care. What did you do?” She advises that if the answer is that they haven’t done anything, you can frame it like a project you can work on together. For example, “Let’s plan our long-term care options together!” Parents love to be helpful to their kids. And asking for help for yourself, versus telling them they have to make a decision, might be a more fruitful way to approach the situation.
With proactive planning, it’s possible for you to meet the financial demands that come with being part of the sandwich generation. And we’re here to help. Let’s chat about how to prepare you!
Hanging out with us in the Plum Tree!
PlumTree Financial's very own Brock Mumford has a heart full of generosity. In 2022, Brock, alongside Heather, his wife, and Sarah, his daughter (who was 16 yrs old at the time), took a family mission trip to Guatemala. The trip was a turning point, paving the way for a new chapter in Brock’s life. Since then, Brock has remained actively involved with the men’s group and has no plans of stopping.
This year’s trip began with sixteen men departing on Thursday, February 27th from Charlotte airport at 2:30am! The men’s group, with ages varying from 23 to 73, landed in Guatemala City and then their journey on land began traveling by vans to Give and Teach’s Mission House in Barberena, Guatemala. The team took daily day trips to Cuilapa, Guatemala to build two houses in the village.
In Cuilapa, many residents live in harsh conditions, building temporary homes in the dirt from whatever materials they can find on the streets. In 3 days, the men built two 20x20 foot houses with three rooms each, complete with bunk beds and kitchen tables for the two families. However, the true focus is on building connections—both with the people of Guatemala and among the group members—rather than the structure itself.
Brock relished the physical challenge of building homes with basic tools under tight time constraints, but he also valued the spiritual aspect of the experience. During the trip, Brock served as the worship leader and led daily morning and evening devotionals and reflections at the Mission House. “It feels great to be part of something bigger than myself, part of a group of men who share the desire to do something good and selfless, away from the busyness of our lives back home. It is an annual reset, a sort of training on how to live simply and freely,” Brock shared.
The trip went off without a hitch, free from challenges like power outages in the villages, missed layover flights, illness, or lost passports. Brock noted “It is inspiring to see men in their 60s and 70s climbing ladders and hammering nails all day in the sun. I benefit from being led by older, wiser men while also being able to guide the younger guys through their own challenges. It is so much more than just building houses. We are rediscovering what is truly important on this journey.” On Sunday, the men hosted church in the morning and then took a horseback riding excursion around an active Volcano in Parque Nacional "Volcán de Pacaya y Laguna de Calderas.” The men closed out their trip and flew home on Monday, March 3rd, exhausted but with a renewed sense of purpose and energy.
Upcoming Events
April 11, 2025 |12pm EST
Market Intelligence Webinar
In today’s global financial markets and nonstop news cycle, it can be hard to cut through the noise and identify the trends that matter most.
For a clearer view and a comprehensive review of the investment landscape across key markets and asset classes that leverages the insight of dozens of asset managers and investment research firms.
Returning once again to provide an update on the current quarter is Danny Cohen, Senior Business Consultant for John Hancock Investments in the Mid-Atlantic region.
PlumTree Financial is hosting a Super CPA CE Event
Continuing Education event for CPAs.
"Spring drew on... and a greenness grew over those brown beds, which freshening daily, suggested the thought that Hope traversed them at night, and left each morning brighter traces of her steps."
Charlotte Brontë,novel "Jane Eyre"
Author, Novelist, Poet, Teacher, Governess and Artist.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
Securities offered through LPL Financial, Member FINRA/SIPC.
This material was prepared by Carson Coaching. Carson Coaching is not affiliated with the named broker/dealer or firm. LPL Compliance Approval # 559457-1
Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.
All information is believed to be from reliable sources; however, PlumTree Financial makes no representation as to its completeness or accuracy.
