Shepard Financial: June Financial Wellness Slides

Juggling the financial needs of your kids, yourself, and your parents Brad Beimesche Lead Retirement Plan Counselor RROO28283434090900--04230423

The sandwich generation RO2834090-0423

Sandwich generation Adults responsible for the care and support of their dependent children plus elderly family members. Age of caregivers 18-29 30-44 45-59 Other 15% 53% 23% 9% Gender of caregivers Women Men 60% 40% Source: New York Life, “Caregiving and COVID-19: How the pandemic is expanding the sandwich generation.” November 2020. (newyorklife.com/assets/newsroom/docs/pdfs/New_York_Life_Sandwich_Gen_White_Paper.pdf) RO2834090-0423

Are you part of the sandwich generation? • Close to retirement? • Responsible for childcare? • Responsible for elder care? RO2834090-0423

Why this generation is feeling the pressure • Smaller families • Divorce • Late starters • Single parents 1 Source: Pew Research Center Dec, 2019 https://www.pewresearch.org/fact- tank/2019/12/12/u-s-children-more-likely-than-children-in-other-countries- to-live-with-just-one-parent/ RO2834090-0423

Additional challenges faced by the sandwich generation 80% 45% 84% feel overwhelmed1 Receive financial help say their retirement will be from parents2 negatively impacted by their financial responsibilities to both children and aging parents1 1 Haven Life, Sandwich Generation is completely overwhelmed, worried they may never retire, 2020 (prnewswire.com/news-releases/sandwich-generation-is-completely-overwhelmed-worried-they-may-never-retire-301020030.html) 2 CNBC, Amid inflation, nearly half of parents financially support their adult children, but ‘it has to go both ways,’ economist warns, March 29, 2023 (cnbc.com/2023/03/29/amid-inflation-half-of-parents-financially-support-adult-children.html) RO2834090-0423

Questions to ask yourself What are your What are your What are your parents’ needs? children’s needs? needs? RO2834090-0423

Your loved ones’ needs RO2834090-0423

People are living longer 1 American Academy of Actuaries and Society of Actuaries, Actuaries Longevity Illustrator, longevityillustrator.org (accessed November 29, 2021). 2 The Administration for Community Living, U.S. Department of Health and Human Services. acl.gov/ltc/basic-needs/how-much-care-will-you-need (accessed November 29, 2021). RO2834090-0423

Questions to ask your parents • What kind of help do you need? • Who will provide it? • Who will pay? • Who will be in charge? RO2834090-0423

Care considerations • Rising healthcare costs • Longer life expectancy1 • Funeral expenses • Family disagreements 1 The Administration for Community Living, U.S. Department of Health and Human Services. acl.gov/ltc/basic-needs/how-much-care-will-you-need (accessed November 29, 2021). RO2834090-0423

Financial support Social Security Pensions Investment income Home equity Employment Medicare RO2834090-0423

Considerations for those with siblings or other family members It may be easier for the sibling living closest to your parents to manage the bulk of their care, but family members living farther away can still help • Have an open conversation • Ask those far away to contribute financially • Ask those who are not local to come visit • Talk early on • Keep siblings informed • Say thank you • Seek help from community resources RO2834090-0423

Your children’s needs RO2834090-0423

Considerations regarding your children General household costs1 Day care costs2 College costs3 45% of people ages 18 to 29 are getting some kind of financial help from their parents4 1 Plutus Foundation, “A Breakdown of the Cost of Raising a Child,” February 2021, plutusfoundation.org/2021/a-breakdown-of-the-cost-of-raising-a-child. 2 Center for American Progress, “Where Does Your Child Care Dollar Go,” February 2018, americanprogress.org/article/child-care-dollar-go. 3 Sallie Mae, “2020 Higher Ambitions: How America Plans for Post-secondary Education,” 2020. 4 CNBC, Amid inflation, nearly half of parents financially support their adult children, but ‘it has to go both ways,’ economist warns, March 29, 2023 (cnbc.com/2023/03/29/amid-inflation-half-of-parents-financially-support-adult-children.html) RO2834090-0423

Strategies for paying for childcare and education Flexible spending Tax credits Reinvestments accounts 1 Source: National Institutes of Health: https://hr.nih.gov/benefits/insurance/flexible- spending-accounts RO2834090-0423

Other considerations Kids are expensive! • Consider in-home childcare • Teach your kids about money • Plan for college • Set boundaries for adult children RO2834090-0423

Your needs RO2834090-0423

Evaluate your expenses today • Emergencies • Mortgage/rent • College • Caregiving • Must-haves versus nice-to-haves RO2834090-0423

Evaluate your retirement expenses • Healthcare • Must-haves versus nice-to-haves • How long will your money last? RO2834090-0423

Envisioning your future? RO2834090-0423

Short-term goals Car Family vacation Remodeling RO2834090-0423

Long-term goals Purchasing your Saving for children’s Retirement home college RO2834090-0423

Medicare doesn’t do it all How Medicare can fall short • Begins at age 65 • Currently only pays about half of retirees’ healthcare costs You fill in the gap • Individual health insurance policy • Supplemental health insurance • Long-term care insurance RO2834090-0423

Your planning process • Budget • Relocation • Insurance • Beneficiary • Distribution options • Retirement planner • Investments • Retirement professional • Debt RO2834090-0423

How can I track my spending? • Use free online tools (such as our budget planner). • Collect all your receipts for a week and see where you are spending. RO2834090-0423

Strategies to help tackle your debt Make a list of: Institutions you Balances Interest rates Minimum owe payments and due date RO2834090-0423

Key points to remember • Caring for aging parents and children creates additional pressures • Don’t allow elder care to derail your financial goals • Be open and clear with loved ones RO2834090-0423

You are not alone RO2834090-0423

Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC.EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice. "EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America. ©2023 Empower Annuity Insurance Company of America. All rights reserved. GEN-EDP-WF-2434600-0423 RO2834090-0423 RO2834090-0423

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