A growing number of baby boomers have found themselves in the middle of the “sandwich generation.” They're supporting elderly parents, raising their children and trying to save for their own retirement. This can be a sticky situation, and as life expectancies continue to grow, it's a generation that continues to expand. In fact, more than 22 million U.S. households were involved in providing care for an elderly person, according to a 2004 report by the National Alliance for Caregiving. A 2009 survey reports that in the last 12 months, 21 percent of caregivers reported moving into the same household with their loved one due to the economic downturn.

If you're in this position, careful planning with a trusted financial professional can help you meet the challenges of competing financial goals, as well as put into place an appropriate strategy to help you achieve a comfortable level of financial security. They can help analyze your current financial picture and map out a plan to help you get there, based on where you are now. Prior to meeting with a financial professional, there are a few steps you can take at home to be better prepared to discuss goals and objectives.

First, invite your parents and older children to a family meeting at home to encourage open communication and discuss needs and goals. Consider important questions that impact the entire family. For example, are your retired parents properly insured? Will you be able to save for your children's education or support any children currently attending post secondary school? Will your children help contribute toward education savings in any way?

Second, put together a family asset inventory. This should be a detailed list of investment, savings, education, and retirement accounts for you and your parents, along with their locations. Adding a Power of Attorney to your parents' accounts, for example, may make it easier for you to take over bill-paying tasks for your parents if such becomes necessary. Where are you with your own retirement savings? How do you picture your retirement?

Third, discuss the consequences of withdrawing income from those accounts, should the need arise. Can you tap into your current life insurance policy to help pay bills should terminal illness arise, for example? Does it make sense to begin withdrawing from your retirement savings account(s) early to help meet your financial needs? Consider the options available to help ensure that an unexpected event, like catastrophic illness, won't wipe out all your savings.

Fourth, review your education savings goals. Think about how much, if any, you can contribute on a monthly/yearly basis to an education savings program. Consider starting an account for your children into which they can begin contributing themselves. Small, but regular, deposits can really add up after five or ten years of savings. This can help teach them to be responsible with their money, while illustrating the value of a penny saved.

Fifth, talk about a basic estate plan including both Financial and Healthcare Power's of Attorney. Having current and appropriate legal documents in place before anyone needs assistance with financial or healthcare decisions is crucial. The last thing you want to deal with is the need for courts and guardianship should any adult become incapacitated. This is definitely an area that requires the advice of a specialist.

My Two Cents Worth….

More than ever, having a plan is necessary for the long-term financial security of you and your family. This planning process can save many hours of aggravation, as well as thousands of dollars if done effectively. As I often mention, the issues of insurance, taxes, investment management, and estate planning are best handled by an experienced and trusted professional. The constant change and evolution associated with all of these areas can be overwhelming to any one individual. You owe it to yourself and your legacy to find a team of professionals that you can trust to help you navigate these issues for you and your family. If you do not currently work with such a team, feel free to call my office. Please remember that helping yourself will ultimately help others.

Investment products and services are available through U.S. Bancorp Investments, Inc., member NASD and SIPC, an investment advisor and a brokerage subsidiary of U.S. Bancorp. Insurance products, including annuities, are available through U.S. Bancorp Insurance Services, LLC, U.S. Bancorp Investments, Inc., in Montana U.S. Bancorp Insurance Services of Montana, Inc. and in Wyoming U.S. Bancorp Insurance & Investments, Inc.

Jeff Cady is a Senior Financial

Consultant/Vice President with

US Bancorp Investments, Inc. Contact Jeff with any questions or comments at 262-241-7182