Financial Concerns and Advice for Sandwich Generation Women

January 23, 2017

Women's economic clout has been rising for decades. And, as a result, the number of women billionaires and multi-millionaires is growing significantly. Notably, according to the Economist, women's share of global wealth is expected to increase to 32 percent in 2020.

But, the unique female perspective is often underrated. And the tendency for women to be the caregivers and focus on a broader array of financial concerns such as children, aging parents and philanthropy may contribute to them being more conservative investors. However, this can be advantageous. In fact, according to the Financial Times, women's portfolio returns are typically higher because they do less trading and embrace the big picture view when investing. And, by being proactive and meeting with a financial advisor, you can transform your success into a financial legacy that supports your heartfelt desires. Here's how:

Using Your Career as a Source of Wealth

As a woman, you likely view career success as the key to wealth generation. A financial advisor can help you identify the best wealth generation strategies to fully leverage your success and maximize your income before retirement. Your advisor can also aid you with tax mitigation strategies to ensure that you retain that income in the future and build out your post-retirement legacy. Schedule a meeting with your financial advisor to map out your cross-generational plan.

If health care is a potential concern, consider contributing the maximum amount to a health savings account. Your financial advisor can discuss the strategy and benefits with you. If you intend to retire from your role as CEO or CFO, consider taking on projects as a consultant — your knowledge and expertise will be incredibly valuable.

Supporting Your Children at All Ages

Although millennial women are starting and sustaining businesses at a record pace, the vast majority of millennial generational wealth will be transferred from their boomer parents.

Are your children, young or adult, financially responsible? Teaching fiscal responsibility doesn't come easy to everyone. Since your financial advisor is vested in your legacy, work with them to map out and implement a financial education plan for your children who need it.

You may want to allocate funds to your children for specific purposes, such as college, starting a business or buying a house. You can now utilize vehicles such as IRAs and certain trusts to do this. As your children or other beloved younger family members grow older and marry, other concerns may arise. These types of considerations are integral to your legacy and wealth planning. Work with your financial advisor to ensure that your assets transfer solely to your intended at the appropriate time.

Adopting Long-Term Care for Aging Parents

The caregiving for aging parents typically falls on a woman in the family. Do you have a plan in place if a parent develops a long-term illness such as Alzheimer's disease? Such situations can have a significant impact on your financial plan. If one parent passes, will the other come live with you? Working with your advisor to organize any documentation such as living wills, trusts and power of attorney generates more peace of mind. Utilizing an inventory manager for investment accounts, bank accounts, and more can also help in the event of death or incapacitation. Combine these with long-term care and other types of insurance to eliminate the associated financial concerns. Keep in mind that your financial advisor will be a great resource during this time.

Do you have a plan in place in the event that you outlive your spouse? Properly setting up and structuring trusts or other vehicles to maintain your economic quality of living is important. Knowing your spouse's intentions and already having a plan in place will greatly alleviate the emotional strain at such a challenging time.

A trusted financial advisor who understands your wealth situation, family dynamics and legacy desires can help you accomplish your multi-faceted financial objectives.