Financial Planning for Generation X & Y Women
 
Notice: Because of a database server upgrade, this site may be partially non-functional from August 21st to August 22nd. No data will be lost. We apologize for any inconvenience.
Under slight reconstruction until 5PM CST today... Please excuse the dust!
Resource Center
Expert Q&A Archive Teleconference Call Archive Online Resources Federal Reserve Board Resources FPA Perspectives
Error — no()

Expert Q&A Archive

10/31/2006
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?
Jeff Kyle:
expert info »
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!