Hello, my name is Rhonda. If you have financial goals, this blog can help you achieve them. A few years ago, I realized that I didn't have a good plan for my future and I wondered if my financial needs would be met after I retired from my job. I immediately started planning for my future by speaking with a financial advisor and I learned a wealth of information at our meetings. By following the recommendations of my advisor and by learning everything I could about finances and money, I now feel very secure about my future. If you need financial help for retirement planning, college savings or even for an emergency fund, you can get sound advice by reading my blog. I believe that by following a few basic strategies, everyone can meet their goals and be financially secure.
What happens when you retire as a stay-at-home spouse? Too often, the stay-at-home partner is completely removed from the financial aspects of a marriage; sometimes this is by choice and other times it is by habit. Nevertheless, even if you're a stay-at-home spouse, you're still contributing equally to the marriage and should have equal input regarding retirement.
Make What Contributions You Can
If you're a stay-at-home spouse with a part-time job, you can still have your own retirement account. You can start your own 401(k) or your own IRA; you just need to talk to a retirement planner. This is important, because you'll also be able to save money in a tax-advantaged account. You can't be taxed on the amount that you're putting in, up to the cap. If your family is already in a good position, it's possible you could put much of your earnings into your retirement plan.
Prioritize Retirement Savings Over Education
If your family is operating on a single income, you may want to prioritize your spouse's retirement savings over other things, such as savings for your children's college funds. Though this may seem to be unfair, it actually makes the most sense: it's possible to take out loans for college, but it isn't possible to take out loans for retirement. Talk to your spouse about whether you should be saving more for retirement or whether you're already on target.
Try to Remain At Work
One of the best things a stay-at-home spouse can do is to maintain a very small amount of income, even if it's just a small job that you do once a week. In the event that your spouse needs to retire early or in the event that the marriage ends, you will have a continuity of labor that you can fall back on. This will also ensure that a stay-at-home spouse is still paying into social security.
Social security is something that you pay into over time. Though there may be some questions about how effective social security will be in the future, it remains one of the most important safety nets for those without sufficient retirement funds.
A stay-at-home spouse is at a disadvantage when it comes to retirement because many of the retirement decisions are going to be intrinsically attached to your spouse's work; because of this, you need to be aggressive about finding out more information and ensuring that you understand your financial situation. Contact your local retirement planning services to learn more about planning for your future today.