Retirement account - especially SAHM or those

who are self employed or whose employers do not pay anything towards a retirement account.

So I looked online this morning and nearly had a heart attack I did some calculations based on what I earn now and what I would need to retire at 65.....I should be putting away something like $12,000 a year!! not happening.

SO what can I do now to prevent myself having a real heart attack at 65 when I have no money!

DH is self employed and I am the only employee for my company so no employer benefits available to either of us.

I know we can set up our own retirement plans - what do you recommend and realistically how much should we be putting in each year?

Thanks a lot.

Re: Retirement account - especially SAHM or those

i am a 1099 we have automatic withdrawal of 300 a month. and if we can we put in more during the year if we have extra cash but that doesn't happen often. there is a maximun amount you can do towards a tax write off depending on your income. I think its thru Vangaurd my dh usually handle it i can get more information if you are interested

Message edited 2/22/2010 1:14:19 PM.

Re: Retirement account - especially SAHM or those

DH co does not contribute to his 401K.

what i did when i was working i would put a total of $25K a year in my IRA half was matched by my employer.

now that i am not working, we put the max in mine and the max in his each year. $5K each.

his co. used to match so he had quit a bit socked away to begin with.

when you do your taxes you can put money in from the money you get back. you also get some back.

so since we have been married we sock away $10K a year (1/2 in each of ours)

granted its not a lot but its something.

Edit: if you had a 401K roll it over into an IRA, or open an IRA

Message edited 2/22/2010 1:18:50 PM.

Re: Retirement account - especially SAHM or those

I stopped contributing when I left my job. I did 15% my whole career and I'm 32 now. I do an IRA for 100.00 a month that's pretty much it.

Re: Retirement account - especially SAHM or those

Have you looked into a SEP IRA or individual 401K?

Your accountant would be the best person to talk to to figure out how much to contribute and which one would benefit you more with regards to tax benefits, your financial situation etc.