According to a Pew Research Center survey from October 2021, 54% of Americans in their 40s have a parent aged 65 or older while also raising or supporting a child financially. For those in their 50s, the figure stands at 36%. Data released in July 2025 by the AARP and National Alliance for Caregiving indicates roughly 16 million Americans qualify as members of the sandwich generation. A 2013 Pew analysis found that 73% of middle-aged adults with at least one child over 18 provided financial support to that child in the past year. These demographic shifts are forcing financial advisors to rethink traditional portfolio construction.
Four advisors interviewed for this article say the classic 60/40 stock-bond allocation, once considered a standard for balanced portfolios, no longer fits the reality of clients juggling multiple financial obligations. However, opinions differ on whether the allocation itself is obsolete or simply misapplied.
Estate Planning Shifts from Death to Life
Tim Thornberry, a financial planner at Prudential Advisors and founding partner of Cornerstone Financial Partners, notes that estate planning once focused on wealth transfer at death. Now, most significant financial moves occur during a client's lifetime. Unless ongoing support for family members is explicitly budgeted, it can quietly undermine retirement security. "Disciplined tax management matters more here than people expect," Thornberry said. "Every dollar we keep from leaking out unnecessarily is another dollar of support, another option, another year of runway." Thornberry argues the 60/40 portfolio is not the problem; rather, it is treating any single allocation as a universal solution. He advocates separating growth, income, liquidity, and risk for each financial obligation, allowing the overall allocation to emerge from those distinct needs.
Bucket Approach Gains Traction
Ryan Botzong, vice president and financial advisor at 49 Financial, reports that over half of his clients in or near retirement are supporting both aging parents and adult children. They face long-term care costs for parents while helping children with rising home prices and a tough labor market. "Being in their 50s and 60s, retirement isn't just about themselves anymore," Botzong said. He believes the sandwich generation requires a structural rethink of the 60/40 model, especially with higher interest rates than the previous decade. Botzong recommends a bucket strategy: growth for legacy, income for retirement lifestyle, and liquidity for immediate obligations. "That's exactly why you can't just focus on basic portfolio construction and call it done," he added.
Family Dynamics Enter Annual Reviews
Brian Baker, a chartered financial consultant at The Baker Financial Group, an affiliate of Strategic Financial Alliance Partners, observes that financial planning now spans multiple generations with interconnected finances. "Many of our clients are helping aging parents with healthcare, housing, or long-term care needs while also assisting adult children with education costs, housing, or simply getting established," Baker said. He now spends as much time during annual meetings discussing family dynamics, health concerns, and career changes as reviewing portfolio performance. "Helping clients navigate those complexities is one of the most rewarding parts of what we do," Baker noted. For more on how advisors are integrating purpose into planning, see Advisors Help Clients Define Purpose Beyond Portfolio Returns.
Sandwich Generation as Opportunity
Rex Berger, private wealth manager at Generation Capital Advisors, a practice operating through Integrated Partners, offers a different perspective. For clients who built substantial wealth through decades of market gains, the sandwich dynamic is not a burden but an opportunity. Many hold excess estates and are eager to support family members. Berger sees this as a chance to align financial plans with clients' values. As the trend continues, advisors are increasingly adopting tailored strategies. For insights on how family offices are formalizing wealth purpose, see Nearly Half of Family Offices Formalize Wealth Purpose, AlTi Survey Finds.
The shift away from one-size-fits-all portfolios reflects a broader evolution in wealth management. Advisors who embrace customized, obligation-based planning are better positioned to serve the sandwich generation's complex needs. For a look at how portfolio integration is accelerating, see Advisor Proficiency in Alternatives Doubles as Portfolio Integration Accelerates, Brookfield Survey Shows.
