Don’t Get Squished: How To Survive The Sandwich Years

Diane Buchanan • April 5, 2017

This article was written by Randy Cass of Nest Wealth and was originally published  on January 15th, 2016.

Your 40s and 50s bring a new, different kind of financial challenge.

In your 20s and 30s, you probably struggled with the question of how to make enough money. You skimped on luxuries to pay college loans, save for a house and to get yourself established in the right career.

In your 40s and 50s, the questions change. You hit your peak earning years (statistically, from about 40 to 55). Now, you’re not thinking as much about how to make money as about how to set your priorities. You have a mountain of obligations: Kids. Helping your parents. Saving for your own retirement. You’d have to be superman, or superwoman to meet all of these obligations as well as do what you like. How do you manage?

Everybody’s situation is a little different, but I advise people to use these four rules to help them survive the sandwich years. You’re the meat in the middle that has to keep everybody nourished.

1. Be an Over-Communicator When it Comes to Money.

The taboo around talking about money remains strong, and it was even stronger in the past. That means your parents might be particularly closed when it comes to sharing with you their money situation. But if you’re going to help them, you need to know what you’re up against. Make a list of questions in advance, including how much they have in savings, checking and investments accounts, and whether they have a will or an estate plan. Ask for a list of their account numbers.

With your kids, the most important thing to communicate is what the limits are and what you expect from them. Will they need to get a part-time job? How much should they expect to spend each month based on what you can provide? Will you pay for graduate or undergraduate education?

2. Put Yourself First, at Least Ahead of Your Kids.

When it comes to your retirement savings, you don’t have that much time left to compound your investments. And, there are other sources of support for your kids’ education: they can work, or get a loan.

3. Tap Professionals as you Need Them.

In your 20s and 30s, you didn’t need attorneys and wealth managers: You didn’t have legal issues or enough money. I’ve seen many clients who were reluctant to seek outside advice, but now that you’re coping across generations, a reasonably priced professional could be worth his or her weight in gold.

4. Have a Cash Reserve.

I usually suggest that everyone have three-six months worth of cash on hand. But, in your sandwich years, turn the dial up toward six months worth. Somebody is going to need something: Either your parents, or your kids. Be prepared. Randy Cass is the CEO, Founder, and Portfolio Manager at Nest Wealth.  Randy is committed to providing Canadians with a personalized and professional wealth management solution that lets them keep more of their money.

DIANE BUCHANAN
Mortgage Broker

LET'S TALK
By Diane Buchanan September 17, 2025
Bank of Canada lowers policy rate to 2½%.  FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario September 17, 2025 The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.5%, with the Bank Rate at 2.75% and the deposit rate at 2.45%. After remaining resilient to sharply higher US tariffs and ongoing uncertainty, global economic growth is showing signs of slowing. In the United States, business investment has been strong but consumers are cautious and employment gains have slowed. US inflation has picked up in recent months as businesses appear to be passing on some tariff costs to consumer prices. Growth in the euro area has moderated as US tariffs affect trade. China’s economy held up in the first half of the year but growth appears to be softening as investment weakens. Global oil prices are close to their levels assumed in the July Monetary Policy Report (MPR). Financial conditions have eased further, with higher equity prices and lower bond yields. Canada’s exchange rate has been stable relative to the US dollar. Canada’s GDP declined by about 1½% in the second quarter, as expected, with tariffs and trade uncertainty weighing heavily on economic activity. Exports fell by 27% in the second quarter, a sharp reversal from first-quarter gains when companies were rushing orders to get ahead of tariffs. Business investment also declined in the second quarter. Consumption and housing activity both grew at a healthy pace. In the months ahead, slow population growth and the weakness in the labour market will likely weigh on household spending. Employment has declined in the past two months since the Bank’s July MPR was published. Job losses have largely been concentrated in trade-sensitive sectors, while employment growth in the rest of the economy has slowed, reflecting weak hiring intentions. The unemployment rate has moved up since March, hitting 7.1% in August, and wage growth has continued to ease. CPI inflation was 1.9% in August, the same as at the time of the July MPR. Excluding taxes, inflation was 2.4%. Preferred measures of core inflation have been around 3% in recent months, but on a monthly basis the upward momentum seen earlier this year has dissipated. A broader range of indicators, including alternative measures of core inflation and the distribution of price changes across CPI components, continue to suggest underlying inflation is running around 2½%. The federal government’s recent decision to remove most retaliatory tariffs on imported goods from the US will mean less upward pressure on the prices of these goods going forward. With a weaker economy and less upside risk to inflation, Governing Council judged that a reduction in the policy rate was appropriate to better balance the risks. Looking ahead, the disruptive effects of shifts in trade will continue to add costs even as they weigh on economic activity. Governing Council is proceeding carefully, with particular attention to the risks and uncertainties. Governing Council will be assessing how exports evolve in the face of US tariffs and changing trade relationships; how much this spills over into business investment, employment, and household spending; how the cost effects of trade disruptions and reconfigured supply chains are passed on to consumer prices; and how inflation expectations evolve. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled. Information note The next scheduled date for announcing the overnight rate target is October 29, 2025. The Bank’s October Monetary Policy Report will be released at the same time.
By Diane Buchanan September 10, 2025
Let’s say you have a home that you’ve outgrown; it’s time to make a move to something better suited to your needs and lifestyle. You have no desire to keep two properties, so selling your existing home and moving into something new (to you) is the best idea. Ideally, when planning out how that looks, most people want to take possession of the new house before moving out of the old one. Not only does this make moving your stuff more manageable, but it also allows you to make the new home a little more “you” by painting or completing some minor renovations before moving in. But what if you need the money from the sale of your existing home to come up with the downpayment for your next home? This situation is where bridge financing comes in. Bridge financing allows you to bridge the financial gap between the firm sale of your current home and the purchase of your new home. Bridge financing allows you to access some of the equity in your existing property and use it for the downpayment on the property you are buying. So now let’s also say that it’s a very competitive housing market where you’re looking to buy. Chances are you’ll want to make the best offer you can and include a significant deposit. If you don’t have immediate access to the cash in your bank account, but you do have equity in your home, a deposit loan allows you to make a very strong offer when negotiating the terms of purchasing your new home. Now, to secure bridge financing and/or a deposit loan, you must have a firm sale on your existing home. If you don’t have a firm sale on your home, you won’t get the bridge financing or deposit loan because there is no concrete way for a lender to calculate how much equity you have available. A firm sale is the key to securing bridge financing and a deposit loan. So if you’d like to know more about bridge financing, deposit loans, or anything else mortgage-related, please connect anytime! It would be a pleasure to work with you.