For Women, Caregiving has Consequences

Caregiving, whether for children or other family members, has financial consequences that women need to consider.

Should I Stay or Should I Go?

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Speaker 1:There's three things that come to mind, to me, right away. One is a cut an income, a cut in the ability to save, and then a loss of career momentum. So if I take them one at a time, it's actually not a cut in income, it's a loss of income when you take time out of the workforce to care for someone in your family. And that's very dramatic. And changes have to be made within the budgets within family units.

Knowing the financial impact

The second piece, in terms of not working, you're no longer saving for retirement. And putting money into a qualified retirement plan, and that's significant when you think about the fact that from ages one through 18, we don't have to worry about income, because our parents take care of that. And then you go to college, and then from 22 to 65, you're working, so you're creating income, and the retirement piece is really, really important, because that's your 65 to 95 piece. But if you don't have that retirement nest egg that generates income, it's problematic.

And then the third piece is loss of momentum within your career. And that's no uncommon, doesn't mean you can't come back, but you don't have the same trajectory if you worked all the way through.

Take action

And of all those three challenges, the one that you can actually implement a tactic for is the second one, saving for retirement. I would encourage you all to talk to your financial adviser about this. But there's something called a spousal IRA. So if you decide to take time out of the workforce, and raise a family, or care for aging parents, and your spouse continues to work, they can make contributions to an IRA in your name, and so that's yours. Those are assets that will be there for you when you retire.

Care for your finances while caring for others

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