Retirement Option for Nannies

eNanny Source recently featured an interview with Stephanie Breedlove, a founder and partner of a payroll, tax and HR firm that serves the household employment industry.  Breedlove’s firm, Breedlove & Associates discovered a new savings solution for nannies, and she shares their discovery below. 

For retirement savings, Breedlove suggests that nannies use a Roth IRA from Vanguard, which is among the most respected financial institutions in the country. Their retirement plan has no start-up costs, no annual administrative fees, and an investment management fee of 0.2%.  The growth is tax free, and there are no taxes accompanying withdrawal at retirement age.  Nannies can use this strategy to supplement their retirement income without cost and administrative burdens. 

Another benefit of these IRAs is that the nannies can set up the accounts and manage investments on their own so that the families they work for do not have to worry about choosing a proper retirement plan.  

Breedlove speculates that retirement contributions will become more popular for nannies as time goes on. She notes that people are living longer and needing larger nest eggs to sustain a standard of living.  

See Michelle LaRowe, Expert Insights: Questions and Answers with Stephanie Breedlove, eNannySource, July 8, 2012. 

Special thanks to Nancy Parker for bringing this article to my attention.