When saving for retirement in a farming family, financial planners tend to focus only on the Farmer himself. What many people don’t always realize is that the rest of the family has opportunities to save for retirement, too.
It’s common to see the wives of farmers as a huge part of working on the farm. Not only do the wives take care of the kids at home, make sure the household runs smoothly, but you can also find many wives driving the combine or grain cart in the fall, planting in the spring, and doing a myriad of other jobs in between. These wives might not be pulling in a formal wage, however, they can still contribute to a Traditional IRA or a Roth IRA, as a spousal contribution. Because one of the spouses has a wage, that allows both to contribute to an Individual Retirement Account.
Kids can get in on the action, too. Typically, farm kids are used to hard work. They grow up cleaning barns, mowing lawn, driving tractor, and fixing in the shop. If kids are getting a wage for their work, they can also contribute to a Minor Roth IRA. In addition to retirement, Roth IRAs can be used to pay for college expenses, a home purchase, or as an emergency fund. Parents can even “match” their kids’ contributions, teaching them at a young age the power of investing their own money.
If you would like to establish a Spousal IRA/Roth or Minor Roth IRA, give our office a call at 320-222-4236.