If you were born between 1965 and 1980, you’re part of Generation X — a group uniquely positioned in what’s often called the Sandwich Generation. You’re managing the needs of aging parents while still supporting children who may not yet be fully independent. Caught between caregiving and planning for your retirement, it’s easy to feel overwhelmed and as if you can’t seem to get ahead.
But here’s the truth: it’s never too early — or too late — to take control of your financial and legal future. With thoughtful retirement strategies and a proactive estate plan, you can ease today’s burdens while securing tomorrow’s peace of mind.
Why Estate Planning Is Critical for Gen X and the Sandwich Generation
As life expectancy rises, today’s aging parents often face complex health challenges, from chronic illnesses to cognitive decline. At the same time, what I’ve noticed is that many of my clients’ adult children across the Chicagoland area, specifically in Oak Brook, Downers Grove, Lombard, Lisle and Naperville are still financially dependent or struggling to achieve full independence, especially with rising housing costs and student debt.
If this sounds familiar and you are caught in the middle of this sandwich generation, you may feel like you’re constantly managing competing financial obligations and emotional stress. Without a solid plan in place, you could be leaving yourself and your family vulnerable to future hardship. Estate planning empowers you to:
- Protect aging parents and your ability to assist them through difficult times with properly drafted powers of attorney and healthcare directives.
- Secure your children’s financial future with thoughtful estate planning and built-in mechanisms that provide asset protection and will protect them from themselves when it comes to managing finances and wisely structuring how they receive their inheritance until they’re ready.
- Ensure that your retirement and long-term care needs are addressed before a crisis occurs and it becomes your children’s problem to deal with.
Smart Retirement Planning Strategies for Gen X
Even if retirement feels far away, now is the time to take advantage of financial strategies designed to build long-term security.
- Maximize Retirement Contributions: If your employer offers a 401(k) with matching contributions, contribute enough to receive the full match. It’s free money and you should take advantage. Also, consider boosting savings through IRAs and exploring Roth IRA conversions. The value of Roth IRA’s have become even more important for your children post-SECURE Act.
- Leverage New Opportunities Under the SECURE 2.0 Act: New legislation allows you to roll over unused funds from 529 college savings plans into Roth IRAs under certain conditions. This creates greater flexibility for managing education savings and retirement funds. If you’d like to learn more about this, check out our prior article: SECURE Act 2.0: Starting in 2024 You Can Roll Unused 529 College Savings Into a Roth IRA.
- Consider Long-Term Care Insurance: The earlier you secure long-term care coverage, the more affordable it may be. Hybrid life insurance policies with long-term care riders are also available, offering dual benefits for financial security. This is growing more and more important these days with our aging population and the growing costs of healthcare.
Key Estate Planning Considerations for the Sandwich Generation
1. Update Your Estate Plan for Life Changes:
If your estate plan was created when your children were young, it may no longer reflect your current wishes or family dynamics. Have you experienced a marriage, divorce, or the birth of grandchildren? Do you need to update guardianship appointments, trustees or more thoughtfully consider how your children should receive their inheritance now that they are young adults? Learn more about why keeping your estate plan updated is essential.
Working with an experienced attorney to help you design and implement a comprehensive estate planning in Oak Brook, IL ensures that your plan keeps pace, grow and evolve with your life over time.
2. Protect Aging Parents with Legal Authority:
Don’t wait for a medical crisis to address your parents’ healthcare and financial needs. At that point, it may be too late, and you may face the prospect of having to hire an attorney and go to court to secure a guardianship over your parents. It’s time-consuming, stressful, and unnecessarily expensive. Having properly drafted and current powers of attorney and healthcare directives in place will allow you to step in when they can no longer manage their affairs. That way, your family can avoid scrambling to hire a lawyer and going to court in a time of stress and crisis, not to mention the cost will be a fraction of opening a guardianship on their behalf.
3. Plan for Your Own Care and Financial Security
As you focus on caring for others, don’t neglect your own future needs. A well-crafted estate plan should include:
- A comprehensive Will and/or Revocable Living Trust.
- Up-to-date healthcare directives and powers of attorney.
- Planning for digital assets, such as online accounts, cryptocurrency, and intellectual property.
Family, Wealth & Legacy Legal Solutions (FWLLS) in Oak Brook, IL understands the unique challenges facing Gen X and the Sandwich Generation and can guide you through decisions that protect your personal legacy and financial future.
Estate Planning in Oak Brook, IL: Support for Every Generation
Navigating life’s complexities while balancing the needs of parents, children, and your own future can be daunting. But you don’t have to face it alone.
At Family, Wealth & Legacy Legal Solutions (FWLLS), we take a compassionate, personalized approach to helping families like yours create estate plans that reflect your values, ease your burdens, and protect your loved ones for years to come. Schedule an initial call with our team to ensure the loved ones you’re caring for across generations are secure in the future.
For more insights on financial planning for Gen X, visit Kiplinger’s article: Come as You Are: Wealth Management for Gen X.
This article is a service of Family Wealth & Legacy Legal Solutions (FWLLS). We do not just draft documents; we ensure you make educated, informed and empowered decisions for yourself and the people you love. That’s why we offer a Family Wealth & Legacy Strategy Session™, during which you will get educated and begin to prepare to avoid life’s most common legal problems and get a plan in place to make the best possible choices for the people you love. You can begin by calling our office today to schedule a Family Wealth & Legacy Strategy Session and mention this article to find out how to get this $750 session at a significantly discounted rate, or even for free.