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SAHM retirement Question

Posted by on Dec. 6, 2013 at 5:34 AM
  • 11 Replies
I am a SAHM and dh works so he puts into a 401k and since I don't work I don't. Well I was thinking of starting. To match what he pays into his 401k into our savings or to ajust hist his 401k where he puts more in.

Suggestions ideas?
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by on Dec. 6, 2013 at 5:34 AM
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Replies (1-10):
rvargas
by New Member on Dec. 7, 2013 at 12:57 PM
1 mom liked this

Don't save for retirement in a savings account. You will not get any tax advantages. I suggest a Roth IRA. The max you can put in it is $5,500 a year (per person). You will never have to pay taxes on any of the earnings!, you'd be able to withdraw any deposits into the account without penalty at any time (you can not withdraw earnings penalty-free though). 

michiganmom116
by Gold Member on Dec. 7, 2013 at 1:24 PM

This.

Quoting rvargas:

Don't save for retirement in a savings account. You will not get any tax advantages. I suggest a Roth IRA. The max you can put in it is $5,500 a year (per person). You will never have to pay taxes on any of the earnings!, you'd be able to withdraw any deposits into the account without penalty at any time (you can not withdraw earnings penalty-free though). 


sugarsmom2
by Member on Dec. 7, 2013 at 5:12 PM

hey wait a min. if you put it in a roth ira account and not [pay taxes on it remember that the tax comes out sometime . and when you take it out they then take it out . this makes it feel like you are not taking as much as you wanted to withdraw is not as much with the taxes paid then . you dont really save money at an older age . seeing this side of the withdrawl  now . we are old and they money is sure going fast . so i will say save as much as you can for the last years of your life . it is never enough . I wish i where smarter then then i am now . wish i had saved every dime i could instead of spending it as fast we made it .

chrissydan
by Member on Dec. 7, 2013 at 5:58 PM
I really don't want a roth ira anyway im not in it to get rich just some additional retirement income besides our savings and dh's 401k. Dh and I have talked about getting a few savings bonds every year the ones that grow for 7 years then you can take em out or put them back in.

Quoting sugarsmom2:

hey wait a min. if you put it in a roth ira account and not [pay taxes on it remember that the tax comes out sometime . and when you take it out they then take it out . this makes it feel like you are not taking as much as you wanted to withdraw is not as much with the taxes paid then . you dont really save money at an older age . seeing this side of the withdrawl  now . we are old and they money is sure going fast . so i will say save as much as you can for the last years of your life . it is never enough . I wish i where smarter then then i am now . wish i had saved every dime i could instead of spending it as fast we made it .

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daniavalentin
by New Member on Dec. 7, 2013 at 6:03 PM

 

Quoting chrissydan: I am a SAHM and dh works so he puts into a 401k and since I don't work I don't. Well I was thinking of starting. To match what he pays into his 401k into our savings or to ajust hist his 401k where he puts more in.

Suggestions ideas?

 I suggest you look for an expert source. I recommend you read any of the books from Dave Ramsey and you will be able to have the tools to save for retirement and manage your money wisely. If you can go through Financial Peace University from Dave Ramsey or buy his book, even better. I understand you don't want to be rich, but you will need more than you think once your retired. God bless you.

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michiganmom116
by Gold Member on Dec. 7, 2013 at 6:39 PM

a roth isn't a get-rich scheme.  it is a retirement account to supplement the 401k, and it pays more than savings bonds or CD's or savings accounts in interest.  why not have the money work for you while it's in there?

there's also annuities.  You can find them through a financial planner or, like my parents, through an insurance agent.

Quoting chrissydan: I really don't want a roth ira anyway im not in it to get rich just some additional retirement income besides our savings and dh's 401k. Dh and I have talked about getting a few savings bonds every year the ones that grow for 7 years then you can take em out or put them back in.

Quoting sugarsmom2:

hey wait a min. if you put it in a roth ira account and not [pay taxes on it remember that the tax comes out sometime . and when you take it out they then take it out . this makes it feel like you are not taking as much as you wanted to withdraw is not as much with the taxes paid then . you dont really save money at an older age . seeing this side of the withdrawl  now . we are old and they money is sure going fast . so i will say save as much as you can for the last years of your life . it is never enough . I wish i where smarter then then i am now . wish i had saved every dime i could instead of spending it as fast we made it .


chrissydan
by Member on Dec. 7, 2013 at 7:01 PM
I get a for a disability paynent which having that type of investment can hurt me in the long run

Quoting michiganmom116:

a roth isn't a get-rich scheme.  it is a retirement account to supplement the 401k, and it pays more than savings bonds or CD's or savings accounts in interest.  why not have the money work for you while it's in there?

there's also annuities.  You can find them through a financial planner or, like my parents, through an insurance agent.

Quoting chrissydan: I really don't want a roth ira anyway im not in it to get rich just some additional retirement income besides our savings and dh's 401k. Dh and I have talked about getting a few savings bonds every year the ones that grow for 7 years then you can take em out or put them back in.



Quoting sugarsmom2:

hey wait a min. if you put it in a roth ira account and not [pay taxes on it remember that the tax comes out sometime . and when you take it out they then take it out . this makes it feel like you are not taking as much as you wanted to withdraw is not as much with the taxes paid then . you dont really save money at an older age . seeing this side of the withdrawl  now . we are old and they money is sure going fast . so i will say save as much as you can for the last years of your life . it is never enough . I wish i where smarter then then i am now . wish i had saved every dime i could instead of spending it as fast we made it .


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rosesink
by Member on Dec. 8, 2013 at 4:02 AM
1 mom liked this

A savings account is a terrible way to save money for retirement.  The interest rate is so low that if you have any fees associated with it you will never make any money.  I get that you are not trying to become an over night millionaire but you need to think of your retirement years, the sooner the better.  Even if you choose to be conservative with your investments (treasure bills and government bonds) you will still make a fair amount of money between dividends earned and compound interest over the years.  Think about it this way, when you and hubby retire this is that much more money you will have to live off of together.He can start one as well even though he has a 401K.   A Roth IRA is your best bet.  The reason it is tax free when you take your money out of the Roth IRA is you payed taxes on the income when it is earned and then put the money in the Roth IRA, as opposed to a standard IRA which is considered "tax defered" because you take the money out of your income before taxes are payed on it and then have to pay taxes on the money when you withdraw it.  Also the Roth IRA gives you more access to your principal (the money you put in)  where as with a standard IRA you have to be 59 1/2 years old to access your money with out a penalty (about 10% or so). Start a Roth IRA so you can have an income for your retirement years as well and have hubby start one too.

chrissydan
by Member on Dec. 8, 2013 at 11:31 AM
Not sure if you missed it but I can't own stocks or bonds that acrew interest aa I have disability paymenta that will get affected so as far as living off thw 401k and such I will always have income I just wanted additional cushion in case we would like to travel. My question was basically to either put money into our savings (which has no fees and yes I do get intrest) or add it to dh's 401k which would be better. Short and simple

Quoting rosesink:

A savings account is a terrible way to save money for retirement.  The interest rate is so low that if you have any fees associated with it you will never make any money.  I get that you are not trying to become an over night millionaire but you need to think of your retirement years, the sooner the better.  Even if you choose to be conservative with your investments (treasure bills and government bonds) you will still make a fair amount of money between dividends earned and compound interest over the years.  Think about it this way, when you and hubby retire this is that much more money you will have to live off of together.He can start one as well even though he has a 401K.   A Roth IRA is your best bet.  The reason it is tax free when you take your money out of the Roth IRA is you payed taxes on the income when it is earned and then put the money in the Roth IRA, as opposed to a standard IRA which is considered "tax defered" because you take the money out of your income before taxes are payed on it and then have to pay taxes on the money when you withdraw it.  Also the Roth IRA gives you more access to your principal (the money you put in)  where as with a standard IRA you have to be 59 1/2 years old to access your money with out a penalty (about 10% or so). Start a Roth IRA so you can have an income for your retirement years as well and have hubby start one too.

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rvargas
by New Member on Dec. 8, 2013 at 2:27 PM

I would add the money to the 401k if those are the only two choices. What is the money invested in inside of the 401k?

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