Retirement Planning for Stay-at-Home Parents

If you’re one of many families that has one parent working to financially support the family, while the other parent works full-time caring for kids and the household, you’re in good company. Today, 7% of dads and 28% of moms stay at home full-time, according to fatherhood.org. 

Not everyone can afford this lifestyle, but if you are lucky enough to have a stay-at-home parent in the household, you know blessings abound! You’re able to raise your children, first-hand, and keep the family humming! But, this life also comes with its fair share of concerns, too. For instance, how does a stay-at-home parent save for retirement?

Thankfully, I have some solutions for any family’s circumstances. Everyone deserves a sound retirement, and parents are no different. Let’s map out some of the key concepts to saving as a stay-at-home parent.

Putting the Parent First

I know what you’re thinking already… How can I put myself before my children? Well, when it comes to money, parents often think of the children first - buying them what they need (and what they want) while also saving for their futures. As parents, we live to protect, raise, and love our kids. But, when it comes to finances, it is OK to prioritize your own long-term needs, too.  

There are plenty of opportunities to pay for your children’s future educational opportunities. Colleges offer scholarships. Federal loans come with low-interest and long-term repayment plans. States even offer programs to defer costs. 

When it comes to retirement, we are left to our own smart savings and planning. So, while it may feel counterintuitive to save for your needs first, remember, kids will have plenty of options (and you can put yourself in a better space to help) when that time comes!

Separate, But Equal

Many retirement savings plans offered through the workplace also come with spousal options. You may have the opportunity to save up for the two of you in one account or select an IRA option for your spouse in their own name.

While you may have joint accounts, shared bills, and agreed upon your finances between the two of you as partners, it is still important for the stay-at-home parent to keep their own financial identity. From a health credit score, to accounts in their name, too, don’t forget to maintain individual portfolios, even if in addition to shared ones, in case of an emergency. 

God forbid one of you wasn’t around tomorrow, it is hard for the remaining parent to open accounts, obtain loans, or even pay some bills without some credit history of their own. 

A Spousal IRA

If you aren’t sure where to get started, a spousal IRA can be a great option to allow a savings plan for each parent in the household. Even if your employer doesn’t offer the option, I can help you set up these unique accounts. 

This way, the money-earner in the family can put away for each of you individually. These types of accounts have roll-over opportunities (in case the out-of-home worker changes jobs, you can keep your savings and bring them with you), not to mention tax breaks for you both!

Small Earnings Can Add Up

Even if your family budget is balanced, adding a small job, even part-time or from home, can make a big difference. Even a small amount of hours each week can really add up when all earnings can go to savings. 

As your children get older, you may find you have more free time as a stay-at-home parent as children are in school, involved in extracurriculars, or spend time with friends. This offers a great chance to earn some funds of your own, which you can save toward your retirement!

Get Some Professional Advice

Sometimes, financial choices can be difficult. There are so many options, and it can be tough to know how much to save, where to save, and how to invest. Thankfully, that’s my specialty. As a mom myself, I know how tough these choices can be for your family. I am happy to be a helping hand, assisting you to find the right fit for your unique, individual needs.

While there is no “one-size-fits-all” program, the best ways to invest involve tailoring the options to your own future! Reach out anytime to schedule an appointment online: https://go.oncehub.com/TheGretchenRehmAgencyInc. 

Let’s find you all a pathway to retirement!