by Dave Kutcher
On one end, older retirees trying to weather the financial impact of rising costs for life’s basic necessities as well as health care and long term custodial care costs and on the other end a younger generation who can’t make ends meet, leaves many parents today, who are approaching their own retirement, stuck in the middle in terms of trying to help both ends of their family as well as being prepared themselves for the “golden years” ahead.
More than half of kids under age 30 today cannot make ends meet without the financial assistance of their parents. Many are unable to provide for their own housing and basic living expenses. Aspirations for a first home, saving for their own retirement and otherwise saving money for the future are all being delayed in order to meet the financial needs of daily living.
If you are stuck in this middle position of trying to help with the financial needs of three generations, including your own, you must be willing and able to make some tough decisions and also call on both ends of the family to do their part too, making sacrifices to help make ends meet.
Taking advantage of helpful financial tools and resources to try and be efficient in this multi-generational planning process is important, requires effort and time and may demand you seek the help of a financial professional. You can’t do everything, and if you neglect your own financial well-being you are just pushing the problem down the road to be dealt with later … and later may not afford you the same help as you are trying to provide to others today.
The kids are going to have to learn to say no to things they can’t afford and be sure they are working and contributing to the family budget and the eldest of the generations are going to have to understand that you need to find a balance between helping everyone meet their financial demands and you meeting your own.
Use this opportunity to teach the younger group the importance of planning and saving for future needs … the best legacy you can provide is to help teach the next generation how to break this cycle and assure themselves that they too don’t find themselves stuck in the middle in the years ahead.
My name is David A. Kutcher, a retired Marine Corp Captain. My business partner in the lower 48 is Richard C. Scott, CLU, LUTCF. For nearly 40 years we have been helping folks with their personal retirement decisions. You can catch us on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio and on Tuesday mornings, KFQD News Talk Radio AM 750 and FM 103.7. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577; (907) 795-7452.
