Fall 2010 Issue - First Investors

Getting SandwichedAccording to the Pew Research Center, 10 million boomers are raising their children,or supporting adult children, while at the same time lending a hand financially totheir parents. Chances are, you are or may soon be a part of this growing populationof dual caregivers—often called the “Sandwich Generation.” The SandwichGeneration faces a unique set of challenges.Privacy Policy of First InvestorsCorporation and Its AffiliatesYour privacy is important to us. We obtain personal informationabout you for the purposes of processing transactions in securities andinsurance products in accordance with your instructions, servicingyour accounts, and satisfying legal and regulatory requirements. Thepersonal information we typically obtain includes your name, address,occupation, age, social security number, financial resources, investmentobjectives, and accounts with other institutions. If you purchase lifeinsurance through us, we will also obtain information concerning yourmedical history, credit history and driving record. We collect informationabout you from a variety of sources, including forms and applicationsthat you provide to us, information that you provide to yourrepresentative, account records we receive as your dealer of record oragent, and information that is furnished to us by health care providers,clinics, other insurance companies, the Medical Information Bureau,and information and consumer credit reporting agencies.We maintain physical, electronic and procedural safeguards to protectyour information. We restrict access to your information to only thoseemployees who need to know that information to provide our productsor services to you and provide training to our employees regarding theproper handling of personal information. We share your personalinformation with our affiliated companies when it is necessary toprocess your transactions, service your accounts, or maintain yourrecords. We also share your information with third parties who needsuch information in order to process your transactions, service youraccounts, or maintain your records. We do not share any informationabout our current and former customers with anyone except as requiredor permitted by law or with your consent. Nor do we share your personalinformation with our affiliates or with unaffiliated third partiesfor their use in marketing their products or services.The Financial Industry Regulatory Authority (FINRA), has createdthe Public Disclosure Program to help investors select individualbrokers or securities firms by providing information regarding the disciplinaryhistory of FINRA member firms and their brokers. Torequest such information—or to receive a free brochure that includesinformation about the program —call 800-289-9999 or accessthe FINRA website at www.finra.org.At First Investors, we put the needs of our clients first. If you wouldlike to communicate with us directly about any matter, including acomplaint, you can call Shareholder Services at 800-423-4026or write to us at:First Investors CorporationRaritan Plaza 1PO Box 7837Edison, NJ 08818-7837Attn: Correspondence DepartmentMaterial contained in this publication should not be considered astax or legal advice. Articles are intended to be accurate, but FirstInvestors Corporation does not assume liability for loss or damage asa result of reliance on the views expressed herein. Address all correspondenceto: Editor, First Investors Insights, First InvestorsCorporation,110Wall Street, NewYork, NY10005-3830.Visit www.firstinvestors.com.2Caring for Aging ParentsTrying to juggle your aging parents’ needs withcaring for your children, running a household,and balancing a career is a challenge—especiallyfinancially. It’s no wonder many boomers arefeeling squeezed or “sandwiched” by all of theseresponsibilities.An important first step is to make sure your parentsare receiving all the assistance available to them.The U.S. Administration on Aging is a goodresource, as is the National Council on Aging. 1Both have websites that include information onelder care, caregiver resources, and servicesfor seniors.If your parents are still independent, don’t hesitateto talk to them about their financial status andfuture plans. Many people who feel prepared forlife post-retirement may have underestimated theirexpenses. The Employee Benefit Research Institute(EBRI) estimates that couples will need to saveabout $300,000 just to cover health-relatedexpenses, assuming they live to average lifeexpectancy and Medicare benefits remain atcurrent levels.But health care is just one cost factor senior citizensneed to consider. Though your parents maybe receiving income from Social Security or othersources—will it really be enough? Both you andyour parents could benefit from talking to yourrepresentative about what challenges may lieahead, and how to best prepare for them.Providing for ChildrenProviding for your children is no small expense.And with the prospect of their children going tocollege in the not-too-distant future, members ofthe Sandwich Generation may face even morefinancial challenges. If one of your goals is to savefor your children’s college education, talk to yourrepresentative about a tax-deferred vehicle such as a529 Plan or Education Savings Account, which canhelp build a college fund for your child while at thesame time provide valuable tax benefits to you.If your child is already in high school, you mayalso want to have a discussion with him or herabout what your family can and can’t afford whenit comes to college. Have your child take an activerole in planning for higher education—whetherthat means applying for scholarships, grants andloans, or working a part-time job to help defraycollege costs.Pay Yourself FirstWith your myriad of responsibilities, don’t neglectthe most important person in your life: you. Whilemoney may be stretched, what with providing foryour parents and children simultaneously, you stillneed to “pay yourself first” by contributing to yoursavings and retirement accounts. It would be a mistaketo put off saving for your retirement, as thelonger you hold on to your accounts, the moretime they have to benefit from the power ofcompounding. If you have witnessed your parentsstruggling financially, you know just how importantit is to build up that nest egg. And unlike yourchildren, who will have the opportunity to applyfor grants and loans, you won’t have the option ofapplying for a retirement scholarship!Get Peace of MindWhen considering your finances, don’t forget theimportant component of life insurance. Now morethan ever it’s important to make sure you areadequately covered—you have two generationsdepending on you.Your representative is well equipped to deal with thefinancial challenges facing members of theSandwich Generation. Whether you’re looking tobuild your retirement nest egg, provide for yourparents, fund a child’s education, or all of theabove—your representative can help you formulatea strategy and recommend the investments that areright for you and your family.1 These entities are not affiliated with First Investors orits affiliates in any capacity. First Investors does notendorse or make any representations regarding theaccuracy of the information they provide.