I'm a SAHM and have been for the past 5 years. I did have a 401K through my previous employer but had to cash it in to pay off debt. I still have a small retirement plan through this same employer but lately I'm nervous because I don't have my own 401K. DH says not to worry because he has a great 401K but I don't want to rely on that always being there. You never know what can happen and life can throw you some curveballs. I do have a savings bond that has matured to a little over $100. I was thinking of opening an account for myself but I'm so overwhelmed by all the information out there and I don't want to have to pay a financial planner. Has anyone else found themselves in this situation? What did you do? Thanks!

IMO I would start small. If you have $100, I would keep saving my money until I have enough for a cd thru a bank (or other investment vehicle like ING). Once my CD looks big enough, you can transfer that money to a Roth IRA. Many IRAs require minimum balances anyway, so at this point, I think it would be wise to have my money grow in CDs or money market savings. At a minimum, keep saving and you will see your nest egg grow. You can diversify once it grows a bit more. And don't pay for a financial planner (yet), see if your husbands employer offers this service for free (ours does). Most companies that offer 401s also have the 401K planner come in quarterly to meet with employees if they wish to schedule an appointment. It may not be detailed info you get, but enough to begin a basic savings plan.

You are in the same boat as me. I cashed in some of mine years ago to pay off debt. I wish I would not have done that. I still have half of it but have not added to it.

I should start saving for myself. You never know.

As SAHM you have no personal earned income so all you qualify for is a spousal-IRA. Google that phrase and read up more on how much you can contribute annually then start saving. I really like the on-line accounts (like ING) that make automatic fund transfers from your main financial account.

As far as your husband's 401k, you should be the beneficiary on that account. Should you get divorced, you can be awarded a portion of that account in the settlement.

__________________
"I've been rich and I've been poor but independently wealthy is where it is at."

Open up a spousal IRA, you can contribute I think it's up to $400 a month to it before you hit the max. And make sure your name is on your dh's 401K!!!

__________________

A woman is like a teabag. You never know how strong she is until she gets into hot water.-Eleanor Roosevelt

I do not have a 401K of my own because I am self employed. We put 10% of DH's salary which is matched by his employer up to 5%. They throw in additional money in profit sharing such that it amounts to a little more than 20% of DH's salary each year.


I am entitled to half of that money. DH was not able to save that money without me. My salary was used to help the household as well as my budget and savings plan letting us maximize what is left. In the event that we were to divorce, I would get a portion of that money as a settlement I assure you. It doesn't bother me that I don't have my own plan. I do have a small IRA but it only has around $4,000 in it. (Not enough to retire on at all!!)

If you want something of your own -- figure out what you can afford as far as a minimum contribution and then assess what level of risk you are comfortable with and invest accordingly. You will find that below a certain investment level you may get hit with fees so make sure you read the fine print.

__________________
Grace

Wife to Stoney

Mommy of Sarah (9), Hannah (7.5), and John(5)

I still have a little account from when I worked and it will stick around until we really really really need the money.
I am like Grace above, DH's 401K has matching and profit share. They triple the amount that is in there even with it only being 6% OUR 401K and I consider it ours is growing faster then us just putting a little bit away.

I figure we will not be a single income family forever. I can start saving aggresively someday when I do go back to work.

__________________
Kimberly Proud Mommy to Bethany Rose April 2006 &

Organizer of the Coupon Clippers of Tacoma