retirement

Overcoming inertia to save for retirement

Stay-at-home Sally: No earnings
Stay-at-home Sally: No earnings © BlueOrange Studio/Shutterstock.com

Even if "stay-at-home Sally" has no earnings, she can still save for retirement. Meetings and commutes may be distant memories for her, but retirement planning shouldn't be.

"Somebody at home is more preoccupied with the here and now -- a child, an ailing parent and so forth," says Eleanor Blayney, consumer advocate for the CFP Board. "At-home spouses have to make a concerted attempt to keep retirement front and center."

Open a spousal IRA. Your working spouse can make yearly contributions on your behalf -- up to $5,500 in 2014, or $6,500 if you're older than 50 -- as long as he or she earns enough to cover the contribution. That adds up: Save $5,500 for, say, 10 years. After another 20 years, you'll have $294,059 if your money grows at 7 percent.

Keep saving. Spouses can gift unlimited amounts to each other. Save these gifts in an account that's specifically dedicated to your retirement. "It's harder to spend ... if it's labeled," says Blayney.

Guard against mishaps. A workplace life insurance plan may not be enough in the event you're suddenly widowed. Get extra coverage. Find a quote for term policies at Bankrate's insurance center.

Stay employable. You're home today, but keep ties to your profession. Network. Update skills. "Don't go completely fallow," says Blayney. "Prepare."

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed 4.22%  0.06 4.16%
15 year fixed 3.32%  0.08 3.24%
5/1 ARM 3.52%  0.17 3.35%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.29% --0.00 4.29%
50K FICO-based HELOC 4.04% --0.00 4.04%
100K FICO-based HELOC 3.89% --0.00 3.89%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.79% --0.00 2.79%
48 month used car loan 2.99%  0.01 2.98%
60 month new car loan 3.24% --0.00 3.24%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.95% --0.00 0.95%
2 Year CD 1.16%  0.01 1.15%
5 Year CD 1.71%  0.04 1.75%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.75%  0.02 15.77%
Cash Back Cards 16.45%  0.03 16.48%
Low Interest Cards 10.96% --0.00 10.96%
 
Next
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

‘Bowzer’ rocks Social Security

Former Sha-Na-Na frontman Jon "Bowzer" Bauman is defending Medicare and Social Security.  ... Read more

advertisement
Partner Center
advertisement

Connect with us