Retirement Planning For The Stay-at-home Mom
By Stephanie Foster, Fri Dec 9th

When you first plan on staying home with your children, probablythe first thing you do is take a look and see if you can affordit. You cut back on cable TV, buy older cars, lose retirementbenefits…

Whoops! Most moms don't seem to be thinking about what being astay-at-home mom does for her retirement package. The yearsspent not working have a huge impact, however, when you decideto retire, so you need to plan now.

Let's start by looking at what you're losing for yourretirement. No 401(k) with your employer contributing towardsit. No pension, although those are getting scarce in most jobsanyhow. Less money available to put towards retirement. Youaren't putting money into Social Security, so your benefits willbe lower.

Ouch. Being a stay-at-home mom means you lose a lot for yourretirement. Socially, the stay-at-home mom, as you may alreadyknow, is not as valued by most or by our government as theworking mother. Fortunately, there are steps you can take toprepare for your own retirement. It means more sacrifices, asyou'll have to put more money aside, but better to provide yourown retirement than be a burden.

You will want to consider having your spouse contribute towardsa Spousal IRA. You may want to talk to a professional todetermine the best type of IRA. According to the IRS website, upto $3000 may be contributed to a spousal IRA in a given year,assuming you are married and filing a joint return. Seehttp://www.irs.gov/pub/irs-pdf/p590.pdf for more information onIRAs.

Of course, it's hard for most families to come up with $3000 ayear to be put towards retirement. Saving while working isrelatively easy; it can come out of the paycheck before you eversee it, so it doesn't hurt much. You need to figure out amonthly dollar amount you can contribute, so that it goesthroughout the year. Don't hurt your family doing this, ofcourse, but if you can find a way to get a little money putaside so you can have a decent retirement, do so.

Those who want only to be stay-at-home moms may resist thenotion of finding a job, whether it be part time or working athome, but it is another option to keep money going towards yourretirement. It assures you that some money is going towardSocial Security, and gives you a little extra money to puttowards your retirement. Once the kids are in school, a highlyflexible job can keep your skills sharp, too.

For others, a home business is an option. You don't have to gothe direct sales route, although it is certainly a popular wayto start a home business with less risk. You can start a websiteon something you love, sell crafts you've made… perhapssomething you love to do could be a small home business for you.

You are the only one who can decide which sacrifices you canmake to ensure that you have a financially secure retirement.Take the time now to think about your future.

About the author:Stephanie Foster is the owner of Home with the Kids, a resourcethat knows that there's more to staying home with your familythan just business. For more stay at home tips, visit the siteat http://www.homewiththekids.com/ and subscribe to the freenewsletter.