Comments on: Retirement Plans for Writers

By: retirement

retirement — Wed, 22 Jul 2009 16:14:55 +0000

[...] in case you’re thinking about it, here’s the scoop on retirement plans for writers. Even if you are NOT thinking about it, you should find out about the [...]

By: Andrew

Andrew — Wed, 15 Jul 2009 13:48:01 +0000

off course, in addition you'd should consider an investment annuities, because is an insurance annuity for you and your children.

By: Rich Smart

Rich Smart — Wed, 15 Jul 2009 12:48:31 +0000

It is a great idea. And you contribute to the retirement plan funds that you would be sending to the IRS instead.
I recently upgraded from a SEP to a Solo 401k Plan with the Solo 401k Retirement Group as my income is variable each year.The Solo 401k allows me to shield my iincome from taxes starting at the first dollar earned and if I need to I can borrow up to 50% of my account paying the interest to myself.

By: Mike Van Horn

Mike Van Horn — Tue, 14 Jul 2009 23:30:49 +0000

Some would say that being a writer–if you get halfway decent fees and royalties–IS a retirement plan. Many professionals I work with gradually do more writing about their profession as they get older. When they get to the age where they want to cut back or retire, the writing is still there, and it continues to provide both revenue and engagement.

Like Jenny Rough said, she wants to be writing till she’s 99.

Hell, some of us may not be able to afford to retire till then anyway!

mvh

By: Ashley Ladd

Ashley Ladd — Tue, 14 Jul 2009 23:11:26 +0000

I’m one of the writers who has a day job so I try to put away most of my royalties into my retirement plan. I need to up my percentage again.

By: Andrew

Andrew — Tue, 14 Jul 2009 20:55:01 +0000

good article, but If you are planning your retirement and you're confused, you’re not alone! There is no doubting the fact that many Americans have trouble distinguishing between the various flavors of retirement plans.

By: Mike Van Horn

Mike Van Horn — Tue, 14 Jul 2009 20:29:59 +0000

In my experience, the amount you put away depends on whether writing is your main source of income or not. If you’ve got a “day job,” an employed spouse, or a small trust fund, then you can afford to put away more. One writer I work with, who is also an attorney, socks away ALL her writing royalties and fees.

But if you pay rent and groceries out of writing fees, squeezing out even a few percent may seem impossible. So I exhort these folks to begin taking just 5% off the top. Invest so that you get COLA + 5%, and watch the magic of compounding.

Whatever percentage you put in, it also becomes your fund for partial self-insurance for healthcare, getting through recessions, etc.

mvh

By: Gwynneth

Gwynneth — Tue, 14 Jul 2009 18:12:14 +0000

Thanks for this recap as I was just thinking about SEP stuff the other day. I didn’t realize there were a few more options out there for me so I appreciate the input.

And yes, I agree on the 15% – 20% contribution if you can manage it.

By: Alegra Clarke

Alegra Clarke — Tue, 14 Jul 2009 17:35:43 +0000

Wait…writers make money? Enough to put away for retirement?
;o)
Great article, I will have to look into the New Zealand version at some point in the near future.

By: Jordan Rosenfeld

Jordan Rosenfeld — Tue, 14 Jul 2009 16:16:40 +0000

Thank you for reminding me to go put money in my Sep-Ira…it’s been a little while :)