Women Need to Know Their Worth - Page 2
By the way, any individual who earns income can establish an individual retirement account (IRA) and contribute up to $5,000 annually, and any husband (or wife) who is eligible to set up an IRA can also create a spousal IRA for a non wage-earning spouse up to the same amount. If you are over 50 years old, you can contribute up to an additional $1,000 per year. So, if the husband is the primary wage earner who contributes to his own IRA, the stay-at-home-mom should speak to her spouse about setting up an IRA for her, if he hasn't already.
3.Potential future earnings. This is very, very important to a woman’s future financial survival. Women must consider their future income earning power even when they’re stay-at-home moms. Recent studies have concluded that 9 out of 10 women will be responsible for their finances at some point in their lives, and, because of divorce or death of a spouse, women will spend more of their lives unmarried than married.
When a woman interrupts her career to have children and raise a family, she must still have a financial plan for the future. Divorce rates are high and employment opportunities may or may not be readily available five to ten years down the road. So it is a good idea for a stay-at-home mom to keep up her professional skills, network within her professional circle, or, if she didn’t have a full-time job earlier, take on-line courses in a field of interest. This will keep her up-to-date with education and skills and in touch with what’s happening in the job market and in her profession. Women who haven’t had a career can take classes at a local community college or online and can network through volunteer and community groups.
Divorce happens regularly, but if you have a good idea of what your past, present and future earning power is, you will be more prepared to plan for your financial future after divorce. In addition, if you did have a career many years ago and need to go back to school to get re-certified, that information can be used to formulate rehabilitative alimony. This type of alimony gives more money to you for the first few years after divorce to help you get the necessary education to re-enter the workforce.
Know your worth; it's important for your financial survival.