Retirement

[JeepGirl6]

So my husband and I have worrying about retirement a lot lately. We are both 27 years old and have our first child on the way due in August. We are moving to a new house at the beginning of May. I don't have any retirement since I run an In home daycare, where my husband works they don't have any retirement. He makes $19.50 an hour which is pretty good but all they offer is health benefits, no dental or vision and an IRA, no 401k. He does not love his job & is always looking for something more in his career field which is a heavy equipment operator. He has thought about going back to school but would have to go in the evenings which would be exhausting plus limit him on classes so it would take longer to graduate.

For those of you who don't have retirement between you or your husband what are your plans because just an IRA for both of us, is it really enough?

[MyAngels]

Unless you are well versed in financial matters you should talk to a Certified Financial Planner. Make sure to find one with some experience, and preferably one that is fee based (not paid on a commission based on what he/she sells).

Every situation is different and they will be able to help you come up with a plan that you can follow.

[butterfly]

What type of IRA? How much are you putting into it?

I have a Roth IRA. I opened this through a financial advisor at my bank. I put 15% of my gross earnings into that each year. There is a max yearly contribution limit of $5000 (I think it may have increased to $5500 this year?) There is only a $10 fee to have the account and I opted to do A shares (pay the fees upfront rather than when I cash them out). All this money will be available to me tax free when I retire, since the contributions are made "after tax". There are other accounts available to business owners, but they have different rules, such as number of employees, etc. I would contact a financial advisor. I talked to a few before I decided to go with who I'm with. I felt his guy is knowledgable and not just after my money.

You both could open a Roth IRA, but I'd first try to max out any contributions your husband could make with his current account -especially if his company offers any type of match option.

[DaisyMamma]

Are you paying into your social security?

I would have two retirement plans, one for each of you and be putting $100/week in each, at least.
But I also recommend talking to a financial advisor.

[canadiancare]

When I do my taxes every year I pay into the Canada Pension Plan. My husband also buys spousal RRSPs in my name (he gets the tax break now and, I will have a lower income at retirement so I will draw on them at a lower interest rate than he would). The main goal is to get the kids through university and the house paid off so our debt load is lower as I age. I am going to be 45 in June and we have just under 7 years left on the house. I would like to be retired from daycare in 2015 when my youngest goes to university and work only part time but I don't know if I may have to tough it out for a few extra years.