Saving for retirement

[Mary-Beth]

So how do you, a stay at home parent save money for your retirement?

What do you do to protect yourself financially if you end up divorced or without your partner?

[Abraisme]

I don't protect myself individually. My husband and I save money in different investments for our retirement. I don't think it's nessesary to protect myself incase I end up single. We have life insurance on both of us if something were to happen. I suggest simply making your retirement investments in both of your names. It's best to have more than simply a work 401k anyway.

[MommaCrystal]

Originally Posted by Abraisme

I don't protect myself individually. My husband and I save money in different investments for our retirement. I don't think it's nessesary to protect myself incase I end up single. We have life insurance on both of us if something were to happen. I suggest simply making your retirement investments in both of your names. It's best to have more than simply a work 401k anyway.

Yes, this is how we handle it as well. Should we ever divorce (never say never but I have total faith that this won't happen) I'd be entitled to half or so. I do have a few investments from before him in my name that continue to grow as well.

[noobmom]

I worked for a couple of years before SAH and managed to save up a small chunk. DH has just recently caught his up to me (he went to school for much longer than I did).

As the SAH spouse, you can make IRA contributions in your name based on your wages earned by your spouse. It's not a lot (only $5K a year), but it's a start.

http://www.smartmoney.com/personal-f...sal-iras-7956/

You can also make non-tax-advantaged investments in your name.

In the event of divorce, I'd get myself a good lawyer. Your DH's retirement funds should be considered part of your joint assets and divided up accordingly.

[Joyster]

We make the yearly contributions in my name. I also have investments in my name as well. In addition to our home and rental property.

[MaddieMay]

We both make yearly contributions to our individual Roth IRAs as well as individual 401K type investments from our work. We also have some joint investments, which I believe have to have both individual's authorization to withdraw funds.

We have life insurance policies on each of us, DH's being quite substantial because of his line of work. I have a smaller policy that we may increase eventually.

I don't worry for a second about divorce, I am more concerned about making sure all our bases are covered in case of death.

[sunflwrmoonbeam]

Financially we're doing rather well (and we're eternally grateful for it), so the plan is that starting next year, when I'll be 26, we'll put $5k into an IRA every year for me. In the event of a divorce I automatically get 50% of everything (savings, retirement, the house) and could possibly get alimony. Both DH and I are committed to homeschooling, so it's rather unlikely that even in a worst case scenario I won't be a SAHM.

[Mary-Beth]

How do you invest in a ROTH or IRA without income?
I'm being told I need earned income to open or invest in these accounts...

[MommaCrystal]

I have information and I'll have to go back and look. I do believe this was once true but it was changed with the thought of stay at home parents. Your earned income is your husband's earned income. Let me go look this up... I'll be back.

Ok, I do believe it is called a spousal IRA.

http://personaldividends.com/money/m...t-home-parents

[JL83]

Everything we have in in both our names, so that's my protection if we were to split up. Neither one of us has anything in only one of our names.

For retirement we contribute in my name.

[SeekingJoy]

I fully fund a Roth each year and still have the investments from pre-SAH.

However, I don't plan to homeschool or at least not stay home full time long-term. Since I will at least start consulting or have some side income I also consider staying active in my field with a current, competative resume a type of "insurance" in case of divorce.

[Curlyfry7]

I work (and maybe this makes me NOT a SAHM, but I consider myself one) one day during the week and then on Saturday for a few hours. Right now I am temporarily working an extra day during the week while someone is out on maternity leave, but usually I work about 16-17 hours a week. I have to have a license in my profession and it is easier to keep it up vs. re-instate it after letting it lapse. I don't have a 401K but have a profit-sharing plan that I put into a Vanguard account, as well as having a Roth IRA.

If something were to happen to my DH I could fully support us in my career and that safety net makes up for the PIA factor in working the day and a half that I work (most of the time )

[Peppermint Poppies]

I make a small contribution (~$1000) each year to my superannuation fund (similar I think to your 401K in the US). It's not enough to fund my retirement, but it's something. And as our financial situation improves, I will try to put away a bit more each year.

[snguyen]

If your DH agrees to it, put your federal/state tax refunds each year into an IRA in your name.

[maptome]

Spousal IRA. We do Roth IRA. Also, all accounts except for DP's 401k are joint.