The Perfect Recipe for a Balanced Life for the Sandwich Generation

 I think I’m like many Americans that struggle to find personal time amongst the chaos of working full time, raising two children, balancing family relationships, and other obligations (school, church, volunteer work, etc.).  And I am not even one of the many Americans between the ages of 40 and 60 who are raising children AND assisting aging parents.  If I have trouble finding time to balance my life with only one family to raise, how can these members of the “Sandwich Generation” do it?

I had a client of mine explain it this way, “You have to run your family like a business, that’s the bottom line.”  While there are certainly feelings and emotions that complicate the dynamics of these family situations, there has to be a way to get things done without sacrificing all of your time, your relationships, or your sanity. 

Here are 3 ways to managing your multi-tiered family like a business:

1. Plan Strategically – The key here is to have a plan; to be proactive rather than reactive.  Know what has to be done, when it needs to be done, and how it will be paid for.   This includes creating master calendars for who needs to be where and arranging transportation).
2. Manage Resources – Make sure you have the tools in place to make things happen (legal documents, financial resources, and human resources).  If you don’t have the pieces in place to make things happen when the time comes, you end up in crisis mode.  This involves making sure legal documents like durable powers of attorney are in place and arranging for help that is either paid or volunteer for things like care assistance, bill paying, etc.
3. Departmentalize – You are the manager of the family business, which means you oversee but do not need to perform every task.  Make sure that the right people are handling the right tasks, and that everyone is doing their part.  This means involving all family members to do their share (including adult siblings) and hiring the right professionals to handle the duties that are outside your area of expertise (Geriatric Care Managers, Elder Law Attorneys, Financial Planners, etc.).

Before trying to handle every duty that comes managing a multi-tiered family, consider viewing your family like a business.  Doing so will ensure that everyone is served best, and will provide you time to maintain a balanced and quality life.

Please feel free to contact me for additional tips on establishing and managing your family business.

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The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material.  The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.  Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James.

The Holidays – A Great Time for a Family Board Meeting

If your family is like most, the holidays are one of the few times during the year that the entire family gets together in the same place at the same time.  If you happen to be an adult child serving as a caregiver for an elderly parent (or parents), now is the perfect time to take charge as CEO of your “family care corporation” and schedule your annual board meeting.

Typically, if children are caring for aging parents, one of the children shoulders the burden more than the others.  If you are in this position, do what any corporate CEO would do…schedule a board meeting and do some strategic planning.  Manage the business of family caregiving by working with other members of the board (your siblings and your parents, if they are able) to make sure all parts of the business are being managed efficiently and that all parties are contributing to its success. 

Make sure the following job duties are covered by members of the board:

• Managing the finances.  Making sure that someone is overseeing the finances and making sure that bills are being paid.  With online bill pay and access to bank accounts from remote locations, this may be the perfect job for the out-of-town sibling that is demographically unable to handle other duties. 
• Managing the care.  If you are working with a Geriatric Care Manager or in-home care company, someone needs to be the primary contact for these services and communicate any developments to the rest of the family.
• Managing the day-to-day operations.  This is likely the job for the sibling that lives nearest. It includes running errands and accompanying elderly parents to medical appointments and getting groceries, amongst other things.

Once duties have been delegated, be sure that each sibling has the tools he or she needs to do their job.  Make sure necessary authorizations are in place, which may include legal documents including Durable Powers of Attorney for General/Financial and Durable Powers of Attorney for Health Care.  Schedule frequent reporting sessions so everyone can stay on the same page.  And make it a point to schedule family meetings with your parents’ professional advisors – financial planner, CPA, estate planning attorney, etc.  This group of professionals can serve as a crucial advisory board for you and your family.

A business cannot be successful if one person is trying to fill every position.  As the sibling who has chosen to take charge, make sure you empower your siblings to contribute to the success of your family care corporation.

The Best Gift You Can Give Your Family

What is the best gift you can give to your family?  Is it college education for a grandchild?  Is it a paid family vacation for your children and their families?

Gifting to family members may be an important piece of your financial legacy plan.   You may desire to gift to family members during your lifetime – when the financial support is needed or when you can observe the enjoyment of the gift. 

The BEST gift, as it turns out, is for you to plan ahead for yourself.  Your ability to ensure that you can fund your own financial independence and any future long-term care needs can provide more of an economic (an emotional) benefit to your family than a gift now.

• According to a recent MetLife study, Americans who take time off work to care for their aging parents are losing an estimated $3 trillion dollars in wages, pensions and Social Security benefits.
• A 2010 study by Fidelity Investment Research found that a 65 year-old couple that plans to live into their 90’s spends $250,000 to cover health care expenses, including Medicare premiums, co-pays, coinsurance and some home care costs.  Note:  This does NOT include chronic conditions or long term care costs.  

Before significant gifting is done, it is important to do a realistic assessment of your ability to fund your own retirement and long-term care needs.   Make sure that the proper documents and financial tools are in place to fund your needs now and later. Take the first step now and schedule a time to meet with your financial planner to discuss long term care planning.

Medicare Open Enrollment Starts October 15th

As if Medicare and all of the changes in plans and formularies aren’t enough, you know have to make your choices sooner!  Beginning October 15, 2011, and ending December 7, 2011, you can make changes to your enrollments for:

• Medicare Part D plans
• Medicare Advantage *
• Medigap Plans

*Medicare Advantage plans can also be changed from January 1 to February 12, 2012.

Making the wrong Medicare choices can cost you hundreds of dollars per month.  It is important that during this limited period of time you carefully evaluate your needs and the available plans to make sure that you are in the most cost-effective plan for your situation.   You can do your own analysis by using the online tools provided by Medicare or look for the help provided by local senior organizations or independent Medicare consultants. 

 Taking the time to find the right plan for you can be financially life changing.  Contact your financial planner for resources in your area.