Optimal Finance Daily - Financial Independence and Money Advice 3274: What Financial Protections Do Stay-at-Home Parents Need? By Amanda Kruse of Women Who Money
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Sep 7, 2025 Stay-at-home parents play a crucial role, but they face unique financial risks. The discussion emphasizes the importance of financial planning and mutual decision-making to safeguard against potential challenges. Key protections include retirement savings, insurance, and asset management. The insights reveal that both partners must engage in financial discussions to prevent future complications. Planning for worst-case scenarios isn't always pleasant, but it’s essential for long-term security and resilience.
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Protect Retirement With Own Accounts
- Open a retirement vehicle even without earned income using a spousal IRA or self-employed plans if you have side income.
- Prioritize fair retirement savings between partners so the stay-at parent doesn't lose long-term security.
Insure Both Partners Adequately
- Buy life insurance for both partners sized to cover debts, bills, childcare, and replacement needs after a death.
- Ensure the stay-at parent's value is covered since their non‑monetary contributions require paid replacement or time off.
Consider Disability Coverage Too
- Consider disability insurance to cover medical, childcare, and household help costs if a stay-at parent becomes ill or disabled.
- Evaluate policies that cover non‑traditional loss of function even if the stay-at parent lacks a paycheck.