Don’t let caregiving derail your financial goals

Women in the “sandwich generation” are used to putting others first. Whether it’s helping their parents navigate retirement options or supporting their children through university, they often find their own financial goals taking a backseat.

But when you’re sandwiched between two generations, it’s crucial not to lose sight of your own financial future, says Louise Fry, a senior investment advisor at TD Wealth.

“For me, I’m lucky because our mothers are financially independent, but my kids are 17 and 20 and one lives several provinces away, so there are costs associated with this life stage and it’s easy to feel overwhelmed,” says Ms. Fry, adding that while there isn’t the financial dependence from her aging parent, she is experiencing an increase in tasks like paying bills, filing taxes and other financial needs.

“Down the road, if we’ve done the proper planning, it may not be a financial burden, but for other families, it could be,” she adds. “And these are often adults trying to juggle their own careers, so it’s a lot.”

Caregiving still typically falls to women

While Ms. Fry’s story is personal, it’s a reality shared by millions of Canadian women who find themselves navigating the complex world of dual caregiving.

According to Statistics Canada, 52 per cent of women (8.4 million) are providing care to children or dependent adults, including 23 per cent who provide unpaid care to adults with long-term conditions and disabilities. Sandwich caregivers are also more likely to be women, with seven per cent providing care to both minor children and dependent adults.

On top of that, children are staying home longer, and parents are living longer, so the length of time and the care required by these two groups continues to increase. The best way to handle the stress that can accompany these years is to plan for them, says Ms. Fry.

“I think planning discussions are pretty much the foundation of what we do,” she explains. “I would encourage clients to not shy away from taking a deep dive into their financial picture, and, to the extent that their parents are willing to share, get a clear picture of their circumstances because so many things are coming down the pipeline.”

When it comes to understanding the costs associated with kids, it can be very age dependent. Are they involved in a lot of activities? Is there a lot of travel involved? Are you helping out with tuition? Are you helping them to purchase a home?

From the aging parents’ side, it’s often about figuring out what they have and what they need: Do they have enough money saved? Do they want to age at home? Are they comfortable moving into a retirement home? What expenses are involved with these decisions?

“I think it’s about helping clients uncover their priorities, and then tackling them one at a time,” says Ms. Fry.

Talk it through, then act on that plan

Once you’ve had those initial conversations, it’s time to move into the concrete planning stage, which can involve accountants, lawyers and other professionals. Tax efficient wealth transfers, proper estate planning and insurance needs are just some of the topics that are often top of the list in these planning discussions.

“It’s also so important to ensure all of the necessary experts are talking to each other and on the same page,” advises Ms. Fry.

To get the most out of any planning discussions, it’s helpful to come in with questions, which can come from all aspects of life – some common questions are: If my parents need sudden medical support, how will that impact my savings plan? Should I consider transferring ownership of certain assets now to minimize future tax burdens? What strategies can I use to financially support my children without jeopardizing my own security? It is also important to keep your own financial goals, like retirement, in mind, as well as making sure to schedule these discussions annually.

These can be hard conversations, but they are necessary to maintain a cohesive financial plan, explains Ms. Fry.

“We always tell our clients, there is never a dumb question,” she says. “Make sure that you understand what you have, make sure you understand how it’s working for you, and make sure that you’re having regular conversations to ensure that you’re on track.”

Take care of yourself first

The tasks required of women in these years are seemingly endless, which is why 40 per cent of women caregivers over the age of 50 are experiencing significant stress and burnout.

It can also be difficult to ask for help, but it’s best not to wait until life unravels.

“What we always tell our clients is that you take care of yourself first, because if you don’t, then you could become a burden or you could be unable to help those around you,” says Ms. Fry, explaining that sometimes it’s not all about the money.

In her many years as an advisor, Ms. Fry says she has seen those in dual caregiving roles who need more than financial help. TD Wealth recognizes the wide-ranging needs of these clients and has more than 300 Women Champions, including Ms. Fry. These advisors are located across the country, and specialize in serving female clients with resources that address the complex circumstances caregiving can bring.

“We sit in on so many conversations with so many different families that although we may not be the experts, we have a lot of experts within our network and we would refer you to them so that you’re not left sitting at home feeling alone and isolated,” says Ms. Fry. “It’s a lot, and we fully appreciate that – we’re here to help.”

Advertising feature produced by Globe Content Studio with TD. The Globe’s editorial department was not involved.