[Checklist] Retirement Plans for Work At Home Moms

Mahesh of the Transcription Certification Institute is back mamas and he’s got an important topic to share. It’s not a work-from-home job or a tip to find that work-life balance we dream of. Something much more important, retirement plans.

I know, this was something that had never crossed my mind before either so I am glad he decided to share his post here with us!

Take it away Mahesh!

[Checklist] Retirement Plans for Work at Home Moms

Retirement plans are just as important to work at home moms as they are to the dads and other family members that work outside of the home.

People tend to think that when you are talking about a “work at home” mom, it means she is an unemployed mom.

Many mothers don’t have actual paying jobs during the time when their kids are growing the fastest. But hey still contribute to the household. They work within a budget and make it possible for part of the household income to be put back for retirement or other purposes.

The following checklist can help you prepare for early retirement or just save money in general:

#1: Spousal IRA

Having your husband create a spousal IRA in your name will help you to put money back in an account that is set aside for you. If you aren’t employed, you won’t be able to contribute to the account, but your spouse can put money in it each month to help. This will build up the account until you begin to earn money on your own.

A spousal IRA can be set up along with their own IRA. And contributions can be made according to a schedule. Find out here FAQs regarding IRA’s contributions.

#2: Create Your Own Credit Profile

Having one or two credit cards will allow you to build your own credit profile apart from your spouse. This means you will be able to be considered for a personal loan, credit cards, or a car loan on your own without having your spouse as a co-signer or co-borrower.

It will take time to establish a positive credit rating. Start small with only one or two credit cards. And never owe more than 25% of what you’re allowed to borrow.

#3: Self-Employment Retirement Fund

If you do have income from a side job, such as babysitting or a small transcription business, you can open a self-employment retirement fund.

Having a home-based business allows you the opportunity to open a 401k account and maximize the amount you can contribute to your retirement funds.

When you’re self-employed it’s important to be able to pay for the things you need. Especially if the items are for the business. Setting up a self-employment retirement fund accomplishes the same goal only you will be providing for yourself. Learn more about it here.

#4: Social Security Benefits | Utilize the Retirement Benefits

If you have been married to your spouse for over ten years, you are entitled to a portion of their retirement fund. In some cases, you may be able to claim half of the total amount over time. Once your spouse retires and begins to draw from his or her account, you can draw as well.

Learn how Social Security benefits work and find out what exactly you’re entitled to. For further details, visit here.

#5: Contribute to Your Retirement Fund with Home Based Business

The best way to contribute to any type or retirement account is to establish a home-based business. For times when you aren’t working, you can always take a portion of the money your spouse makes and deposit it in your account.

Either way, you want to make sure a little of what you earn each week or month is being put aside for retirement. Spouses who don’t bring in a steady paycheck can save money in unique ways.

Set aside any extra grocery money or money left over after the utilities are paid and put it in your savings account. At the end of the month, take a portion of it and place it in your retirement account.

#6: Plan Your Future As an Occasional Work at Home Option

While being retired with money is fun, it can get boring at times. So, if possible, do plan to work occasionally from the comfort of your home at your convenience. You could prepare assignments for teachers, do freelancing digital marketing or even transcription and translation jobs.

These jobs will add welcome money to your kitty. And you can splurge when required. If you think you have no such talents, research and join courses that will help you keep busy and creative. Even when you are retired.