5 Tips To Avoid The Sandwich Generation Squeeze

It’s happening more and more often these days- parents are reaching their early 90s just as their children have entered their retirement years. These “children” are part of what is now called the Sandwich Generation; Baby Boomers who need to learn how to retire while caring for both elderly parents and young adult kids—Millennials who still need financial assistance. This new trend threatens to squeeze Boomers’ finances and put their retirement nest egg at risk—unless they learn how to navigate the looming pitfalls. Here are five tips to help with just such a situation.

1.       Protect your retirement assets and put yourself first; If your kids need help with tuition, help them apply for student loans. If your parents are struggling, help them learn to stretch their assets.

2.       Anticipate your financial needs by increasing your monthly reserve, in the case that your children move back home.

3.       Consider long term care insurance for you and your parents. Price policies and learn what’s covered—it may help defray some of the enormous expense of nursing homes.

4.       Research tax breaks for caregivers. If your parents live with you for half the year, you may be able to pay for caregivers and other expenses by claiming the dependent-care credit on your tax return or contributing to an employer’s dependent-care flexible spending account.

5.       Set clear financial limits if kids move back. Encourage them to work or pay some rent to help offset costs.

If you have questions and would like to meet with a financial representative, Honor Financial Group is a great first step.  Give us a call to set up an appointment today.  And, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.  Honor Credit Union and Honor Financial Group are not registered broker/dealers and are not affiliated with LPL Financial.

Not NCUA Insured -Not Credit Union Guaranteed -May Lose Value

Financial Lessons Millennials Should Be Thankful For

Millennials (those born between 1980 and 2000) make up one of the highest unemployment rates in the country.* As a result, all of the classic milestones of adulthood-marriage, kids, mortgage-are happening later in life.  However, growing up as Generation Y has its advantages- hard money lessons! These economic clouds that hang over the heads of Gen Y actually have a silver lining.

1.      Lesson 1-Hard Financial Lessons Have Been Learned Early  Those of us described as Millennials learned (and understood) at a very young age how money works, and why it’s important to live within one’s budget. Our parents were frugal (for the most part) because of the downturn of the economy. Not overextending on loans, saving pennies, and not spending more than you earn were lessons we were forced to reckon with.

2.      Lesson 2-Expectations Have Been Revised  Gone are the days of the traditional American Dream of an 18 bed 12 bath mansion on a hill with a butler named Jeeves and a Ferrari in the five car garage. Many young adults are realizing early on how utterly unrealistic these expectations are. More and more, Millennials are choosing to drive around their old beater car until it dies, and to bunk with their parents past graduation and well into their twenties. This used to be a major social stigma, but now it’s seen as the smarter choice.

3.      Lesson 3-Historic Collapses Are Also When Fortunes Are Made  When would you rather get off your butt and start a career- during an economic boom, or bust? The answer is a no-brainer. According to a recent study by T. Rowe Price, those who began systematically investing in equities in the past severe bear markets (or an economic downturn) were significantly better off 30 years later than investors who began in bull markets (when the stock market is thriving).

So yes, millennials have had it rough so far, being thrust into the workforce during uniquely volatile times. But the past is the past, and the future has yet to be determined. The full life story of Generation Y isn’t done!

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

*According to The Fiscal Times

Four Reasons Why Millennials Can (& SHOULD) Trust Credit Unions

First thing you’re probably wondering is what the heck is a millennial?  That’s an easy answer – anyone born between 1980 and the early 2000’s.  A harder question to answer is why this group of people has such trust issues regarding their finances.  Nearly 40% of this group regularly worries about their finances, but 25% trust “no one!”* Credit unions are here to help, and here are four reasons that millennials can (and SHOULD) trust credit unions.

1. Credit Unions are nonprofit organizations.  What this means for members, including those that fall in the millennial category is that any profits made off of credit union’s financial products is reinvested into the credit union, NOT put in the pocket of a select group of shareholders.
2. Credit Unions want to educate members, not take advantage.  It truly is in the best interest of the credit union to have members that are confident with their finances and educated on how to manage their money.  More financial confidence and stability means less defaulted loans and lower interest rates for the members!
3. Credit Unions provide members the tools to succeed.  On the same note as educating members, credit unions not only talk the talk, but give members the tools they need to succeed.  Contrary to some beliefs, credit unions have many tech-savvy tools to help members manager their money and feel more confident with their financial plan in whatever way suits them best.  From the mobile app to mobile deposit capture, there are many way that millennials can keep tabs on their finances and still keep up with their busy demanding lives.
4. So many millennials don’t think they even are eligible to join a credit union, like it’s a special club that they haven’t been invited to.  This could not be more wrong, especially at Honor!  Anyone in the great State of Michigan, no matter their age can become an Honor Credit Union member!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Listen to 97.5 Y-Country's Wild Bill and Honor's Scott talk more about millennials and why they should trust credit unions on Mason Jar Monday!

*Source - http://www.cuna.org/WebAssets/Pages/newsnowarticle.aspx?id=27917295025&blogid=448&utm_source=real_magnet&utm_medium=Email&utm_campaign=CUNA_NN%20-%20%2314615577-1