Any suggestions for a retirement plan for stay at home Mom?

4 Responses to Any suggestions for a retirement plan for stay at home Mom?

1. J says:

   April 14, 2010 at 9:15 pm

   If you have any earnings you can start a Roth IRA. If not, then you have to invest in a taxable account. My guess is that you are not familiar with investments. I would suggest you consider investing in Vanguard’s Star Fund or one of their Target funds (pick a date closest to your estimated retirement date). Both of these funds are low cost and provide a diversified allocation of investments. Just go to their web site or call them to get started.
   I think you should also begin reading about mutual funds, investing, etc – unlike most of what we learned in school this is knowledge you can use and profit from the rest of your life.
   Just be careful everyone wants to lure you with “the top ten funds…” etc. Look for the articles that recommend using index funds – e.g. books by Bogle on mutual funds (he founded Vanguard). As you become more knowledgable you can move your investments. The best way to save is to do it automatically. You can have money taken out of your bank account and invested in your mutual fund each month.
   Once you do that – don’t pay much attention to the market “noise” – markets go up and down, you are in it for the next 25 years or so – so don’t panic. When you are about 5 years from needing the money – then give it some thought.
2. Angela says:

   April 14, 2010 at 8:57 pm

   Gradually build yourself an online business now so that it will generate income in the years ahead without a lot of continued maintenance and upkeep. It can actually be quite fun if you pick a niche that you really enjoy.

   I decided to do that (late 30′s) and began an online chocolate candy site. It is gradually growing and in a few years should be bringing in a steady income. I’m having a grand time doing it too. (You can check it out in my profile if you want to see what I mean).

   It is always nice to be prepared even though we have no guarantees of what the future holds.

   All the best.
3. Angela S says:

   April 14, 2010 at 8:01 pm

   If you’re pretty sure that you won’t need the money before age 59 1/2 or later, you can put it in an annuity. Annuities were established in the 1960′s to allow people to invest for retirement and not pay taxes until the money is withdrawn. Some annuities are used for IRA’s but you can use an annuity outside of an IRA also. There are variable annuities, where the money is invested in the market, and fixed annuities where the insurance company gives you a set return. Go to a book store and get the book “Getting Started in Annuities”. It’s very informative and pretty accurate. A broker and/or an insurance agent can sell you an annuity. Make sure it’s with a company with an A. M. Best rating of A or A+ or A++. Good luck.

   There are conditions under which a stay-at-home parent can contribute to an IRA based on their spouse’s income. You can check out the rules for IRA’s in http://www.irs.gov
4. klunk says:

   April 14, 2010 at 7:23 pm

   wow auntie…….the best plan is to make sure the kids can return the favor when you need them !!! that is as reasonable as it gets