Invest Like A Boss: Retirement Ideas for Moms and Entrepreneurs
It’s no secret moms have it hard. The most difficult job is so often the most rewarding, we love our kids. But that doesn’t mean that aren’t still a few hurdles to navigate, and some of those hurdles are retirement options for anyone who stays home or runs a business from home. Here are some valuable places to start looking to invest, because when the kids grow up there is still your future to think about.
*Disclaimer: Some of the links you see may be affiliate links. All that means is if you click through and end up making a purchase, I’ll earn a commission.
Ellevest
Around a third of entrepreneurs don't have any kind of retirement at all. This company aims to take a different look at investing, and focuses specifically on helping women with their financial goals. I have an Ellevest account, and in my experience, they make it very easy. Answer a few questions about your income and goals, and then set up the account to auto-deduct a monthly amount from your bank. Then basically it’s hands off.
Every few months they will email you a reminder to update your information to make sure it’s still accurate and they are helping you achieve what you want. And they have a mobile app you can download if you want to follow your progress instead of leaving it alone. They also deduct a minuscule advisor fee every month, but the dividends you earn seem to be typically much greater than what you’re paying for the service.
When women are stronger financially, we all win. Ellevest is investing by women for women, and when you use my link to sign up — we both get $20!
Robinhood
Investing in the stock market used to mean you need a broker and some serious startup cash. But now with this app, you don't have to be a Rockefeller to start. And you’re in control of your own money. Buy 1 share or 100 in companies you’re familiar with, like Groupon, Bitcoin, Twitter, Tesla, Netflix, and more.
Robinhood is changing the stock market with commission-free investing, and their $0 minimum deposit makes it easy. Get a free stock when you sign up with this link.
Whole Life Insurance
I am not a financial advisor or a tax professional, so you should double check with your accountant or insurance company before you make any investments. Here are some general guidelines for how whole life insurance policies can help you invest.
If you take out a whole life policy for a specified amount (say $10,000), most companies require that you keep making your premium payments even after it’s paid in full. That is, once you’ve paid $10,000 in premiums, you don’t stop making payments. But now the money grows, typically invested in the life insurance company itself or stocks.
So if you were to die, your policy will pay out a larger death benefit than it specified, corresponding to how much it grew. Most people intend for these payments to cover funeral expenses and outstanding debts, so that their families aren’t obligated to pay.
But if you have term life insurance or a universal policy for those purposes, and you’re investing in a whole life policy just to diversify your portfolio, then you can cash it out. The longer you leave it, the more it grows, of course. But if you get to the point where you want your money, you can “surrender” the policy or close it and reap the benefits. The income is taxable. If you take a loan out against the policy instead, it’s not taxable.
Some life insurance plans pay you the money the policy earns in dividends every year, rather than letting it grow. These payments are usually considered a refund on an overpayment of premium, so they aren’t taxable.
A whole life policy is usually guaranteed by the company to last your lifetime, meaning it stays in place until you’re 120, unlike a term policy. You could use a life insurance policy as another way to invest in your future, a little at a time.
Financial Goals to Protect Your Family and Your Business
These suggestions are meant to be supplementary, not to replace your 401k or IRA. Talk to a financial advisor about the best way to plan for retirement and about good options for entrepreneurs.
For more on money, read A Wild Lass’s guide to getting control of your budget.
*Disclaimer: Some of the links you see may be affiliate links. All that means is if you click through and end up making a purchase, I’ll earn a commission.