By Stephanie Foster
When you first plan on staying home with your children,
probably the first thing you do is take a look and see if you
can afford it. You cut back on cable TV, buy older cars, lose
Whoops! Most moms don't seem to be thinking about what being a
stay-at-home mom does for her retirement package. The years
spent not working have a huge impact, however, when you decide
to retire, so you need to plan now.
Let's start by looking at what you're losing for your
retirement. No 401(k) with your employer contributing towards
it. No pension, although those are getting scarce in most jobs
anyhow. Less money available to put towards retirement. You
aren't putting money into Social Security, so your benefits
will be lower.
Ouch. Being a stay-at-home mom means you lose a lot for your
retirement. Socially, the stay-at-home mom, as you may already
know, is not as valued by most or by our government as the
working mother. Fortunately, there are steps you can take to
prepare for your own retirement. It means more sacrifices, as
you'll have to put more money aside, but better to provide
own retirement than be a burden.
You will want to consider having your spouse contribute
a Spousal IRA. You may want to talk to a professional to
determine the best type of IRA. According to the IRS website,
up to $3000 may be contributed to a spousal IRA in a given
year, assuming you are married and filing a joint return. See
www.irs.gov/pub/irs-pdf/p590.pdf for more information
Of course, it's hard for most families to come up with $3000 a
year to be put towards retirement. Saving while working is
relatively easy; it can come out of the paycheck before you
ever see it, so it doesn't hurt much. You need to figure out a
monthly dollar amount you can contribute, so that it goes
throughout the year. Don't hurt your family doing this, of
course, but if you can find a way to get a little money put
aside so you can have a decent retirement, do so.
Those who want only to be stay-at-home moms may resist the
notion of finding a job, whether it be part time or working at
home, but it is another option to keep money going towards
retirement. It assures you that some money is going toward
Social Security, and gives you a little extra money to put
towards your retirement. Once the kids are in school, a highly
flexible job can keep your skills sharp, too.
For others, a home business is an option. You don't have to go
the direct sales route, although it is certainly a popular way
to start a home business with less risk. You can start a
website on something you love, sell crafts you've made…
something you love to do could be a small home business for
You are the only one who can decide which sacrifices you can
make to ensure that you have a financially secure retirement.
Take the time now to think about your future.
About The Author: Stephanie Foster has been a stay at home mom
for nearly 5 years and loves what she does. For more tips for
stay at home parents, visit www.homewiththekids.com/