As Mother’s Day quickly approaches, I thought it’d be a great time to share this article from Klipinger.com with the fantastic moms and women out there. Take your finances into your own hands and take the advice.
1. Schedule a money date with your spouse and talk things out. Many women want their spouses to talk about money issues more, so try starting that conversation yourself! Write out your financial goals together and see whether or not you’re on the same page.
2. If you aren’t saving for retirement already, start. Small amounts set aside now will compound and grow over the years. The earlier you start, the more time your savings have to grow. If you are working, sign up for your company’s retirement plan. Aim to contribute at least enough to qualify for your employer’s match. It’s free money! In 2010 you can contribute up to $16,500 to a 401(k) or other employer-based retirement account, or $22,000 if you’ll be 50 or older by year’s end.
Never cash out your company plan if you switch jobs. Instead, roll the money over to an IRA or new employer plan so that you continue saving and do not get hit with tax penalties.
3. No company or employer plan? Then set up your own retirement account, such as an IRA. If you’re a stay-at-home mom, you can have an IRA so long as your spouse is employed. In 2010 he can contribute up to $5,000 to an account for you ($6,000 if you’re 50 or older) in addition to his own $5,000 contributions. This doubles the tax breaks to you as a couple!
4. Life insurance is always advised. Once you have children it should become a priority so your children do not suffer financially if you’re not around any longer. The rule of thumb? Coverage should equal eight to ten times your annual household income, including any benefits covered by your employer. Buying term life insurance is said to keep things simple and inexpensive. Several hundred thousand dollars’ worth is just a few hundred dollars per year.
Already have life insurance? Remember, you’ll need to re-evaluate your coverage periodically to ensure it still meets your current life circumstances. For instance, you may need more coverage if you have another child but less when the children are grown and out of the house.
5. Write a will. When you don’t have a will, your state’s one-size-fits-all estate plan kicks in and you might not agree with it. The state will also choose the guardian of your children. With a will, you can make these decisions, divide your property and even design trusts for your children for specific purposes. Review your will after the birth of additional children.
6. Make sure you specify a guardian. If you don’t choose a guardian for your children officially, then the choice you informally made with a friend or family member won’t stand up legally. Avoid any hassle or expensive court battle by naming a guardian in your will.
7. Review your beneficiary designations on insurance policies, IRAs, 401(k)s, and other retirement plans such as pension and profit sharing plans at various life stages. The assets in these accounts go directly to whomever you have named as a beneficiary; these are not covered by your will. If you handle these issues now, you won’t have devastating consequences if something was to happen.
Read the full article here.
Thursday, May 06, 2010
7 Ways Moms Can Boost Their Financial Security
Labels:
401(k),
finances,
financial advice,
moms,
retirement,
will
Blog Archive
-
▼
2010
(1176)
-
▼
May
(121)
- Questions for the Tax Lady: May 31st, 2010
- The Fishermen and the Tax Man
- Highlights of House Tax and Spending Bill
- Tax Deal Fuels New-Home Sales
- 10 Reasons to Buy a Home in Spite of the Expired F...
- 6 Surprising Facts About The Early Days Of Income Tax
- How to Keep your Staff Motivated
- House to Vote on Tax Bill as Net Cost Drops to $60...
- Special Tax Incentives for Small Businesses to Pro...
- Unemployment stuck at 12.6% in California
- Exclusion of Gain on the Sale of Certain Small Bus...
- What to Consider Before Retiring Overseas
- Democrats propose tax hikes in response to Schwarz...
- Recent Tax Law Changes that Might Affect your Busi...
- Social Security, Defense Top List of Debt Panel's ...
- World’s Wealthy Tapped for Cash as Governments Tax...
- Arizona's Bill Is Bad For Business
- Hire this Summer and Get a Tax Break
- 18 Ways to Earn 5% or More
- At Risk: The Gulf's $234 Billion Economy
- SBA Out of Money For Loan Breaks
- 5 Ways to Curb Bank Overdraft Fees
- The Tax Caps Cometh
- Ford to Move Hybrid and Electric-Car Jobs to Michigan
- GOP wants website to put policy in hands of voters
- Questions for the Tax Lady: May 24th, 2010
- Congress's Carried Interest Tax Folly
- Jobs and Tax Bill to Cost $134 Billion
- Soda Tax Uncaps a Fight
- Unemployment Falls In 34 States
- U.S. Sets Application Window for Drug Tax Credit
- Stealth IRS Changes Mean Millions of New Tax Forms
- Getting A Homebuyer Tax-Credit Through The IRS Can...
- Bill Gates Sr. on Raising Taxes
- Tax Advice for Students Working a Summer Job
- Fund manager tax bill could hit House floor Friday
- Get the most from your Social Security
- From: “Federal budget: $59 billion here, $300 bill...
- House Holds Hearing Today on Tax and Internet Gamb...
- Extending the Sin Tax to the Tanning Bed
- Statement of IRS Commissioner Doug Shulman on the ...
- Senate Deal off on Estate Tax
- Top U.S. official pledges to reform ties to Big Oil
- Form to Claim Payroll Tax Exemption for Hiring New...
- Small Firms May Claim Health Tax Credit For Dental...
- Online Gambling Tax May Be Jackpot for Congress, L...
- Short-Run Tax Hikes Being Used to Fill Gaps
- Washington Pushes for Free Credit Scores
- Top College Savings Plan
- IRS Offers Details on New Small Business Health Ca...
- Questions for the Tax Lady: May 17th, 2010
- Greece Considering Legal Action Against U.S. Banks...
- Kagan Filed Brief on Behalf of IRS in Textron Case
- Fed Up, Greece Lists Tax Dodgers
- Republicans Introduce Bill to Prevent Euro Bailout
- U.S. Firms Dodge Billions in Taxes by Moving Profi...
- Group Proposing Nevada Tax, Government Changes
- IRS Issues Spring 2010 Statistics of Income Bulletin
- Nickel and dimed by Obama's microtaxes
- Schwarzenegger budget: No new taxes, deeper cuts
- Supreme Court Nominee Elena Kagan
- How can we pay for the tax extenders?
- Tax Foundation: Tax Revenues Fall in 45 States
- Gold Hits Fresh Record on Inflation Fears
- IRS Injured Spouse Relief
- In Job Market Shift, Some Workers Are Left Behind
- Latest Good Reads
- The Pros and Cons of Value Added Taxes
- The Mortgage Forgiveness Debt Relief Act and Debt ...
- Tax-Exempt Status Could Hinge On Filing Deadline
- 5 Things to Know About Getting Audited
- Filmmakers Flock To Forum On State Tax Credits
- Federal Budget Deficit Hits April Record
- Will a fix to Social Security cure our country’s l...
- Should the IRS prosecute confessed evaders of offs...
- Tax Bills In 2009 At Lowest Level Since 1950
- 6 Beauty Products That Are Tax Deductible
- Real Estate's New Problem: Not Enough Homes
- Candy Tax Takes Effect June 1 In Washington
- IRS Finds Possible Problems with How Colleges Repo...
- Preserve Your Organization's Tax-Exempt Status wit...
- Questions for the Tax Lady: May 10th, 2010
- A Few Quirky Tax Breaks That Aren't Going Away
- How To Protect Your Family From Estate Tax Uncerta...
- High-Income Taxpayers Should Maximize Charitable C...
- What is the American Opportunity Education Credit?
- New Rules Making Tax-Credit Closing Deadlines Toug...
- Costly IRS Mandate Slipped into Health Bill
- Dow Plunge is Wake-Up Call to Deal With Debt
- Keeping Your Business Profitable in Tough Times
- How Do You Keep Them Coming Back?
- Health Care Reform’s Tax Change Creating Headaches
- 7 Ways Moms Can Boost Their Financial Security
- Study: Shaken-Baby Cases Rose During the Recession
- IRS Seeks Applications for Information Reporting A...
- Senate Financial Bill Misguided, Some Academics Say
- Developing Future Leaders: The Importance of Succe...
- Economic Outlook Is Cautious Even With Spending Up
- Millions of Tax Returns Filed Using Other People’s...
- The “Perfect” Time To Save
-
▼
May
(121)