Are you a stay-at-home-mom (SAHM)? If so, THANK YOU! You are literally wonder woman, and chances are good that if you’re anything like me (a partial SAHM), you’re reading this right now with oodles of dry shampoo in your hair, a pile of laundry nearby that needs to be folded, and are a full-time jungle gym for your little ones. It can be difficult to prioritize yourself, let alone your retirement needs, when you have groceries to shop for, school activities to attend, and nap schedules to work around.
I get it. I really do.
That said, you ARE important. As the airline attendants often advise, it is important to make sure that in the case of an emergency, you put your oxygen mask on first prior to assisting others. While this seems to completely contradict everything you stand for as a parent, keep in mind that you’re infinitely more helpful to your children and to your family unit as a whole if you are “okay”.
So …how can you prioritize your finances while being a stay at home mom?
Two ways:
- Contributing to your spouse’s IRA
- Securing proper life insurance
I find it surprising that most women don’t know that they can actually still have a retirement plan even if they’re at home with the kids without an actual income. The good news? You CAN! As long as your spouse has earned income, you can contribute to their IRA up to the maximum allowable limit each year (for 2018, this limit is $5,500 for anyone 50 and under – $6,500 limit for those over 50. For 2019, this limit increases to $6,000 for anyone 50 and under – $7,000 for those over 50). You can contribute to either a Traditional IRA or a Roth IRA. Note, you don’t HAVE to contribute the maximum limit – the amount you decide to contribute will largely depend on your family budget and what you and your spouse determine is financially feasible. The important piece is that you do contribute. Those contributions will be very important to funding your future plans.
Secondly, be sure to secure proper life insurance. Most families know to purchase life insurance for the working spouse, but not all families purchase insurance for the SAHM. Here’s the thing: you are important! You are the heartbeat of the family and keep your little ones engaged on a daily basis. If something were to happen to you, how would your family be able to continue? When you purchase life insurance, consider all of the costs you would need to include in order to maintain the same quality of life that you have now: the daily duties, child care expenses, household maintenance, etc. Life insurance is the key to ensuring your family is protected and you, in turn, can achieve greater peace of mind.
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