The Silver Tsunami is no longer a vague threat lurking out at sea. It began slamming into shore in 2011, when the baby boomers started turning 65, and has been shaking the foundations of retirement planning ever since. Boomers swept up in this demographic shift have experienced significant changes in their relationships with those around them, including their families and their advisors. Many boomers now find themselves in the unfamiliar role of providing financial and emotional support for both aging parents and children struggling to achieve financial independence.
Nearly half of Americans in their 40s and 50s (47 percent) have a parent age 65 or older and are either raising young children or supporting a grown child, according to a study released last year by Pew Research. Approximately 15 percent are providing financial support to both an aging parent and a child.
Several years after his mother passed away, his father, who lived in Florida with Froelich's stepmom, became ill.
A recent study of single-family offices by the Wharton Global Family Alliance cites non-financial components as one of the key drivers of wealth performance. "If you have a family that's disagreeing among themselves, they're going to have difficulty making important decisions about investments," Gray says. "But when you have consensus and engagement, they're going to make much better decisions and they're going to be a much better client for you as an advisor."
"We focus on the money, because that's our domain as advisors, but it's about more than that," says Mari Adam, CFP, president of Adam Financial Associates in Boca Raton, Fla.
A good advisor