Bonnie Maize, a financial advisor, will be discussing the financial feasibility and success of having a one-income household. Bonnie is a financial advisor who works virtually with clients across the US. She focuses on helping mainstream Americans, working class, women, LGBTQ members, and communities that have traditionally had a hard time accessing financial help. Bonnie has 15 years of experience as a stay-at-home parent.
Check out the summary of the video below:
[03:13] Choosing to be a stay-at-home parent is not just a financial decision. It involves giving up benefits, setting up retirement accounts, and making contributions for a child’s future education.
- Consider giving up benefits from employment and the cost of being added to the partner’s health plan.
- Set up retirement accounts and make sure retirement contributions are still being made.
- Make contributions to the child’s future education.
- Communication is key, and working with an hourly planner can help figure things out.
[06:28] Planning ahead and building up emergency savings are crucial for success in a one-income household
- Plan ahead for big expenses like dinner or trips
- Build up emergency savings before losing the second income
- Get creative with freelance or remote work, or work opposite schedules
- Have a conversation about financial feasibility before having children.
[09:44] Stay-at-home spouses should have their own savings and consider options like part-time or freelance work to re-enter the workforce gradually.
- Having a spouse IRA is a great tax benefit.
- It is important for stay-at-home parents to stay up-to-date on their skills and consider online classes or updating their resume.
- Exploring part-time or freelance work can be a good way to re-enter the workforce.
- Consulting a financial planner can help in determining the best way to coordinate benefits, insurance, retirement savings, and childcare.
[13:00] Employers value the skills gained from being a stay-at-home parent, such as organization and staying calm in tough situations.
- Stay-at-home parents may experience reduced savings, especially for retirement.
- They may earn fewer Social Security credits, impacting their future Social Security benefits.
- It is important for stay-at-home parents to have a plan for making up for lost savings and consider future career options.
[16:14] Tips for stay-at-home parents to manage finances and benefits
- Prepare an emergency fund and consider supplementing lost benefits
- Stay-at-home parents still need life and disability insurance
- Meet with a financial professional to weigh options and build a plan
- Financial coaching, planning, and investment management services are available for different fee structures.
