Stay-at-home parents face unique challenges when it comes to retirement planning. Unlike their working counterparts, they may not have a steady income or a retirement plan provided by their employers. However, it is important, as per Bill Schantz, for stay-at-home parents to start planning for their retirement as early as possible to ensure a comfortable retirement.
Bill Schantz On Retirement For Stay-At-Home Parents
First and foremost, stay-at-home parents should understand the basics of retirement planning, says Bill Schantz. Retirement planning involves setting goals, estimating expenses, and making financial decisions based on those goals and expenses. This may seem daunting, but with the help of a financial advisor, it can be much easier.
One important consideration is to make the most of your spouse’s retirement plan. If your spouse has a 401(k) or other retirement plan through their employer, make sure you are contributing as much as possible to it. You can also consider opening an Individual Retirement Account (IRA) in your own name.
It is also important to consider your own financial contributions throughout your life. While you may not have a traditional paycheck, you should still aim to save a portion of your spouse’s earnings for your retirement. You can also consider monetizing any skills or hobbies you have to bring in additional income.
Another important aspect of retirement planning for stay-at-home parents is understanding how Social Security benefits work. Social Security benefits are based on your earnings history, so if you have not worked outside the home, you may not be eligible for benefits based on your own earnings. However, you may be eligible for benefits based on your spouse’s earnings history.
Additionally, stay-at-home parents should consider the cost of healthcare in retirement. Healthcare costs are one of the biggest expenses in retirement and can quickly eat away at your savings. It is important to estimate the cost of healthcare and insure yourself against unexpected health issues.
One way to address healthcare costs is to open a Health Savings Account (HSA). An HSA is a tax-advantaged account that can be used to pay for qualified medical expenses. If you are enrolled in a high-deductible health plan, you may be eligible to contribute to an HSA.
It is also important, as per Bill Schantz, for stay-at-home parents to have a plan in place in case their spouse dies or becomes incapacitated. This may include having a life insurance policy, a power of attorney, and a will in place. Having these documents in place can ensure that your finances are taken care of and that your wishes are carried out.
Bill Schantz’s Concluding Thoughts
In conclusion, retirement planning can be challenging for stay-at-home parents, but it is not impossible. According to Bill Schantz, by understanding the basics of retirement planning, making the most of your spouse’s retirement plan, and estimating expenses, you can set yourself up for a comfortable retirement. Remember to also consider healthcare costs and have a plan in place in case of unexpected events. With a little bit of planning and foresight, you can ensure that your retirement years are happy and stress-free.