Look out for matching employer contributions in retirement plans
In searching a new job watch out for employers that match your contribution to a 401k plan. This doubles your earning potential at no extra cost to you. Without this match it is better to set up a separate IRA.
Options for women that are self employed
If you are self-employed you can contribute $5,000 ($6,000 for those who have are 50 years and above) by way of deductible contributions to fund a traditional IRA, or you can shift that amount after-tax deductions to a Roth IRA, which will see your money growing absolutely tax-free.
Women ought to maximize their social security benefits
Social Security links benefits to 35 years of service, and women ought to try and work maximum to get the most out of these benefits. If the working spouse claims earlier this will have the effect of reducing the benefit by 25%. For every single year that the working partner delays the claiming of these benefits until after he crosses 66, the surviving partner gets an additional 8%, as well as cost-of-living adjustments.
Spousal IRAs for homemakers
This deductible IRA contribution can be made so long as you file a joint return with your working spouse, and the working spouse has sufficient earnings to cover this contribution.
Women need to provide more for long term care and annuities
Better life expectancies mean that women need to save an average of $125,000 for long term care. Women in their fifties can opt for products that gainfully combine a long term cover with an annuity or a life insurance. This is beneficial because you can get a steady annuity payout if you don’t touch the long term care, and legal heirs get the death benefit. Taking out an annuity protects you if your spouse expires and leaves you a smaller benefit. The single annuity pays better than a joint annuity.
Women should involve themselves more in investing and budgeting
Only around 35% of women get to take responsible decision in investments and household budgeting, and this trend needs to be reversed. This impacts their lifestyle because they become aware of the consequences of each financial decision. There are many nonprofit organizations that conduct seminars education women in every aspect of domestic budgeting, and planned investments, and which help women decide better insurance options.
Negotiating a favorable settlement in divorce
The retirement fund is a joint asset and even when both partners have separate funds it is permissible to split the benefits 50-50. Foregoing your rights to a pension to secure the home is suicidal as you could be saddled with mortgage and maintenance expenses in a scenario of depreciating property prices. Remember that a pension brings in steady income whereas a home is an unending expense ticket. To get a share of your spouse’s employer retirement fund you need a court order that will ensure your rights are protected. Ten years of marriage and earnings lower than your spouse will entitle you to a share of the spouse’s Social Security survivor benefits.
In financially strained circumstances a vehicle title loan can help you
If the going gets tough and your spouse has left behind debts that are eating into your savings, use a loan for vehicle title to consolidate these loans. The cash loan for title requires you to place your pink slip as collateral for a loan exceeding 60% to 70% of your vehicle’s resale value. The car equity loan interest rate does not exceed 25% APR which is far lower than what payday loans muster. The auto collateral loan is available despite a bad credit background and repayments are far easier on the pocket.