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-Laurie-
Hi!
Member since 5/05 2536 total posts
Name:
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Investments for a SAHM
So DH has his Roth IRA and we have our savings but should I also be starting a Roth IRA for myself?
I know our bank (USAA) recommended it since they have the "you never know where your marriage may end up"slogan which totally disgusts DH.
So we thought about it and would me having an additional IRA offer us a benefit or would be better investing other ways.
We are firm believers that maxing out our retirement is more important then a 529 for our son because if we have money down the line we can help support him thru school. We don't want to be like our parents and need help later on in life. Also Dh went to a Academy and also won't be paying for his Master's and well I went to a CUNY College so that my degree didn't break the bank as well so we are firm believers that Jack will have various options towards college. Note, we aren't evil he does have a savings account that will be turned over to him at 18.
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Posted 10/26/06 2:06 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Investments for a SAHM
since I seem to change job alot- I set up an IRA at citbank- I put in a small amount right now- but soon I want to add more
it's been going up really well- I am very happy with it
I don't it hurts to be over prepared
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| Posted 10/26/06 2:08 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: Investments for a SAHM
I say yes. One of the great things about a Roth IRA is that if something happens, you have better access to the principle, since you have already paid taxes on it.
I think it is probably a good idea to have something of your own as well. You can share savings and other investments, but the IRA would be yours alone. As much as the idea disgusts your husband, I think it is good to be prepared for your future.
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| Posted 10/26/06 2:12 PM |
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Selden78
I lvoe the fall :)
Member since 6/06 3543 total posts
Name:
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Re: Investments for a SAHM
I say yes also
we have a orange savings acc
I give to 401K at my job
and I have a IRA with my bank
I am saving you never know what the next day holds
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| Posted 10/26/06 2:21 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Investments for a SAHM
Resounding YES!!!!!!
You should always have your own retirement account.
We both do aside from our 401(k)s.
It's very important and I'm not saying that your marriage will end, but you never know what will happen in the future.
My parents are in the same boat. They have very little and right now we are helping them.
I will never be in that position..I've made a promise to myself.
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| Posted 10/26/06 4:45 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Investments for a SAHM
Posted by Blu-ize
Resounding YES!!!!!!
You should always have your own retirement account.
We both do aside from our 401(k)s.
It's very important and I'm not saying that your marriage will end, but you never know what will happen in the future.
My parents are in the same boat. They have very little and right now we are helping them.
I will never be in that position..I've made a promise to myself.
LOL can you start an "ALL you need to know about your 401k thread"
you are our LIF official 401k guru
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| Posted 10/26/06 4:46 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Investments for a SAHM
Posted by Meaghan729
Posted by Blu-ize
Resounding YES!!!!!!
You should always have your own retirement account.
We both do aside from our 401(k)s.
It's very important and I'm not saying that your marriage will end, but you never know what will happen in the future.
My parents are in the same boat. They have very little and right now we are helping them.
I will never be in that position..I've made a promise to myself.
LOL can you start an "ALL you need to know about your 401k thread"
you are our LIF official 401k guru
man, once I get started..I just roll!
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| Posted 10/26/06 4:49 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Investments for a SAHM
Yes. DH has both an IRA and a 401k and so do I and we put the maximum amount for both. It's a pain and it seriously reduces our monthly income, but in the long run it is sooooooooo very very worth it. Not only that, it reduces your tax liability because the amount you contribute to your IRA is deducted from your overall income (because it's pre-tax dollars), which may bring your down to a lower tax bracket, and will reduce your taxes. That's one of the main reasons why we did it - DH owns his own company so we get KILLED on our taxes, but we ended up putting a lot of the money that would have gone to the IRS into retirement accounts instead.
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| Posted 10/26/06 4:49 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Investments for a SAHM
Posted by Bxgell2
Yes. DH has both an IRA and a 401k and so do I and we put the maximum amount for both. It's a pain and it seriously reduces our monthly income, but in the long run it is sooooooooo very very worth it. Not only that, it reduces your tax liability because the amount you contribute to your IRA is deducted from your overall income (because it's pre-tax dollars), which may bring your down to a lower tax bracket, and will reduce your taxes. That's one of the main reasons why we did it - DH owns his own company so we get KILLED on our taxes, but we ended up putting a lot of the money that would have gone to the IRS into retirement accounts instead.
good for you! Yes it will bring down your tax liability but it's after tax money into an IRA. Do you have a SEP set up for the business?
Message edited 10/26/2006 4:52:53 PM.
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| Posted 10/26/06 4:51 PM |
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Bxgell2
Perfection
Member since 5/05 16438 total posts
Name:
Beth
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Re: Investments for a SAHM
Posted by Blu-ize
Posted by Bxgell2
Yes. DH has both an IRA and a 401k and so do I and we put the maximum amount for both. It's a pain and it seriously reduces our monthly income, but in the long run it is sooooooooo very very worth it. Not only that, it reduces your tax liability because the amount you contribute to your IRA is deducted from your overall income (because it's pre-tax dollars), which may bring your down to a lower tax bracket, and will reduce your taxes. That's one of the main reasons why we did it - DH owns his own company so we get KILLED on our taxes, but we ended up putting a lot of the money that would have gone to the IRS into retirement accounts instead.
good for you!
Thanks!  We also ended up getting a new car for a fraction of the price using the business owner deduction  I guess taking that tax code class in law school is finally paying off
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| Posted 10/26/06 4:52 PM |
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-Laurie-
Hi!
Member since 5/05 2536 total posts
Name:
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Re: Investments for a SAHM
Posted by Bxgell2
Yes. DH has both an IRA and a 401k and so do I and we put the maximum amount for both. It's a pain and it seriously reduces our monthly income, but in the long run it is sooooooooo very very worth it. Not only that, it reduces your tax liability because the amount you contribute to your IRA is deducted from your overall income (because it's pre-tax dollars), which may bring your down to a lower tax bracket, and will reduce your taxes. That's one of the main reasons why we did it - DH owns his own company so we get KILLED on our taxes, but we ended up putting a lot of the money that would have gone to the IRS into retirement accounts instead.
Yeah, IRS wise it doesn't make a difference for us. I have no income and Dh is about to start deploying ALOT and will be in tax free combat zones about 9 months out of the year, so with Jack, mortgage interest etc.. tax wise we aren't hurting at all.
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| Posted 10/26/06 4:53 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Investments for a SAHM
that's great..I used that deduction for my first car lease. I need to pick your brain!
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| Posted 10/26/06 4:54 PM |
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-Laurie-
Hi!
Member since 5/05 2536 total posts
Name:
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Re: Investments for a SAHM
So would my best bet really be the Roth IRA? or moneymarkets.
We're 27 I will be SAHM for a pretty long time.
Dh's IRA is doing awesome and he's been maxing it out since he was 22 :)
Helping out parents sucks big time and I can only imagine how much it hurts them to have to take help.
If anyone can offer advice I'd appreciate it. We also need to start upping out life insurance and figuring out what kind we want to get, but with that its more tricky because it needs to not have a flying clause, war clause.. etc..
Luckily, it's taken a good 4 years (but I guess that happens when your married out of college at just 23) but we are doing well moneywise and in the next 6 months we should be doing alot better and have some more liquid cash and I just want to put it in the best possible places.
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| Posted 10/26/06 4:58 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Investments for a SAHM
citibank has a new e saving account at 5%- just as an FYI
I just got one in addition to my money market for long term savings
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| Posted 10/26/06 5:02 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Investments for a SAHM
I would suggest both for you. You need an IRA and a separate money market/brokerage acct. Max the IRA and put money into the money market as you can.
Yes, it's hard for my folks to take the help but they have no choice. I'm just glad we can help them. I shudder at the thought of what could be if I didn't help. 
I also have a e-savings with Citibank that is linked to my checking. I highly recommend it. There are other investments you could get into, but this is a good start. Get a good amt into your IRA and then start putting some in the mm acct.
Life insurance is cheap for what your needs will be. You are young, in good health..
There are companies that will insure you and your DH.
These are excellent steps you are taking for you and your family's future.
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| Posted 10/26/06 5:09 PM |
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stickydust
Now a mommy of 2!!!
Member since 4/06 3164 total posts
Name:
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Re: Investments for a SAHM
Sorry if this is a stupid question - but I thought I read somewhere once that you can only have a IRA if you make less than a certain amount a year. Does anyone know if this is true?
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| Posted 10/26/06 5:17 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Investments for a SAHM
Traditional IRAs have no income limitations. Roth IRAs have a limit of $150K for married couples.
....and not a stupid question!
Message edited 10/26/2006 5:40:22 PM.
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| Posted 10/26/06 5:29 PM |
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julz33
i run for bacon
Member since 5/05 20584 total posts
Name:
julz
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Re: Investments for a SAHM
I don't know much about it, but I have a Roth IRA in addition to my 401K that I put $3K in per year.
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| Posted 10/26/06 8:14 PM |
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