Finances/ Retirement Plans

Nelly - posted on 09/08/2011 ( 9 moms have responded )

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Hi, I am curious for all the stay at home moms who want to be stay at home moms for the rest of their lives. What is your retirement plan option if anything were to happen to hubby? Is it to collect spouse's retirement plan and live off that? I was just curious about this since I've been a sahm for 20 years

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Carol - posted on 09/13/2011

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I'm assuming that your husband has been putting something away for your retirement. By your, I mean both of yours. I don't understand why there would be a separation between a husband and wife if their finances have always been together. If, God forbid, anything should happen to him I'd think that you were the sole beneficiery followed by your kids in case you went together. It went to us kids when my mom died earlier this year - my parents were divorced. It's on the papers they sign when they put money aside for retirement. Life insurance would give you both peace of mind if you're worried about something happening to him. We got it for both of us just before our first was born. It's enough for childcare if I die, and enough to maintain our lifestyle until our kids are grown if he dies and then I'd get a full time job. His job also offers life insurance based on his salary.
We plan on me finishing college while the kids are still home and entering the work force again based on their schedules until they're out of the house. Then I'd go to full time and retire with my husband as soon as we can sock enough away to last. We are not relying on any Social Security because we don't believe that there will be any left by then - nice to contribute for the last 25 years though (not).

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My husband contributes enough to his 401k to cover both of us, since his salary covers both of us now. If he were to pass away, he has a life insurance policy that would keep me up. I also have my own IRA that I put in place when I worked. It would not be enough to support my retirement for more than 5 or 6 years, but it will help out in the event that hubby passes away before he finishes his working career.

I also have several real estate investments of my own which bring in a small monthly income and which I can sell at any time (pretty much, there are some limitations) if I need an influx of cash.

In the event that my husband goes crazy and becomes an abusive monster (I highly doubt, but never hurts to be prepared) I have a savings account that only I can access. I put this in place before I married him, it is all money that I earned and saved away on my own. I no longer add to it because all income belongs to our family now, but it's enough to get me out of a bad situation and support me until I can get on my feet.

I am a strong advocate for every sahm to have a solid, strong financial plan for any situation.

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Rhondan0623 - posted on 09/15/2011

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I work from home just to make some extra cash. But I've ended up making more than my husband lol. I think I'll just keep doing what I'm doing because it seems to work.

Katrina - posted on 09/13/2011

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I also work from home, and earn residual income. That is what I plan on using for retirement.

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My husband has different retirement plans all over the place. By the time he retires in 40+ years we'll have a nice chunk of change. As soon as we can afford the monthly payments on life insurance we'll get some for the both of us. I plan on opening up shop at home here in the next few years to help pay off any remaining debt and get us a good savings plan going. We are young enough that really the plan would be that I'd just get a job and work until retirement myself.

I'm actually more worried about him being forced on disability, thanks to his wrists, than him dying before retirement.

Michelle - posted on 09/10/2011

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Well as of right now we have a life insurance policy on my husband that would take care of us for a long time hopefully and investments that would also take care of us. I am planning to go back to school and get a different degree when all the kids are in school. Technically I worked enough before I had kids to get my own social security if it still exists by then. I don't know how things will go in the future but I should be pretty well taken care of in my retirement based on our current plans.

Stifler's - posted on 09/08/2011

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I'm not sure really. I don't really plan to work full time again until the kids are moved out and doing their own thing or old enough to fend for themselves and come and go from the house as they please. A few days a week yes though.

Tosha - posted on 09/08/2011

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well bein a mom only lasts for so long till u must do something unless ur happy doin nothing best thing i suggest an what i plan to do is go to school to learn what i want to do after the kids are grown an i am home alone...i will be able to have a job of my own to help them an do things we may have always wanted

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