The last of the baby boomer generation turns 51 this year.

The last of the baby boomer generation turns 51 this year. In 1963 when the oldest boomer was 17, “Little Deuce Coup” by the Beach Boys was a runaway hit. This writer remembers thinking that a T-bird convertible would be dude nirvana. The closest I came was a 1964 Mustang!

Stuff! The boomers love stuff! Cars, boats, toys, big houses, pool tables, lawn furniture...stuff their parents and grandparents could not afford as they recovered from W. W. II and the after-effects of the Great Depression. According to Kiplinger, by 2020, 16.8% of the American population will be age 65 or older, up from 13% in 2010 and 9.9% in 1970. As the Age Wave rolls on, areas with a high percentage of seniors may see slower growth as older consumers spend less on stuff, and in fact, accelerate downsizing and simplification of life.

Decluttering is a trend, but guess what? The children of the boomers, by and large, don’t want all that stuff! Many “treasures” will end up in thrift shops. But what is moving between generations is financial support, with significant planning implications for all involved.

A boomer age 51 easily could have parents in their late 70s or older. Many parents with children still in middle or high school, or college age kids, have aging parents or grandparents to worry about and care for. This is the famous “sandwich generation squeeze,” a drain on time, energy, and finances coming potentially from four directions—aging loved ones needing care and support, children with high cost education and support demands, career challenges, and retirement that suddenly doesn’t seem all that far away.

There can be a reverse money flow as seniors tap retirement resources to aid adult children or grandchildren. The number of seniors raising grandchildren continues to increase. Per National Underwriter Life & Health magazine (May 2015), 56% of Americans provide some form of financial support to either aging parents or young or adult children; 15% of adults in their 40s and 50s provide financial support to both an aging parent and a child. Pressures multiply if your are dealing with a special needs child or adult.

If you are a breadwinner, how many people in how many generations are depending on you? For those providing caregiver services, same question? Do you have sufficient life insurance to fund current and future obligations if you exit the planet prematurely? Do you have adequate disability coverage so your paycheck doesn’t stop if you are impaired?

Do you have minor or adult children who suffer some form of physical or mental challenge? Here trust planning is important as they cannot receive or manage money. Parents with special needs children need to know about Special Needs Trusts and tax-efficient funding mechanisms. Older persons with dementia such as Alzheimer’s disease or other threats require trust planning regarding potentially inherited assets.

Transfer of retirement plan assets is particularly tricky given murky federal laws. Substantial assets may reside in IRAs and other retirement plans. Movement of assets to minors or impaired or special needs persons requires sophisticated tax and estate planning advise.

Regarding all persons in the planning equation across multiple generations, make sure Durable Powers of Attorney for assets and health care are current and available to those that will have to step in given a family crisis. Older persons should have “the conversation” with the go-to child or other loved one. What do you want done? Where are your critical papers? Where is your Advance Directive? For a useful guide to information loved ones need see the Family Love Letter, www.familyloveletter.com , and/or Aging With Dignity Five Wishes, www.agingwithdignity.org/five-wishes.php.

Your heirs may not want all of your treasures, but for key assets and financial accounts check all primary and contingent beneficiary designations and make sure your will is up-to-date. We see trusts that were created on paper but not funded. Trusts only work if assets are titled in the trust or the trust is a beneficiary.

And if you still have that little deuce coup or vintage Mustang, who gets that? A treasure is in the eye of the beholder!

Lewis Walker is President of Walker Capital Management, LLC. Certain advisory services offered through The Strategic Financial Alliance, Inc. (SFA). Lewis Walker and Mike Hostetler are registered representatives of SFA which is otherwise unaffiliated with Walker Capital Management, LLC. lewisw@theinvestmentcoach.com

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