Expert Q&A Archive
I'm taking a leave of absence — what about income?
I am taking a leave of absence from my career to raise my children, which puts me at a disadvantage financially. How do I make up for the loss of income earning years?
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First, let me start by saying that I believe this to be the most important & meaningful "career" in the world! My wife has been doing the same since 2 weeks before our first was born. That was 9 Ĺ years ago & we never cease to see the return on investment!! Now, that said, itís a trade off. This is like time, once itís past, you canít "make up for it". I donít know what form of income youíll have, if any. Are you married or have a significant other who is providing an income while you raise children & take care of the home? If so, a couple of options to ensure yourself some retirement income would be to over-fund a Universal Life policy and / or an annuity. This way you get some tax deferred savings compounding over the years. You may also want to consider a small home-based business that would allow you to accomplish all the duties youíll have at home and be able to create some extra income to use to help fund some tax-deferred savings. Having this income would allow you to fund a Roth IRA (using after-tax $$) & will accumulate tax-deferred. If you leave the monies in there until your at least 59 Ĺ, it will come out tax-free! Best to ya!