5 Retirement Planning Tips for Creatives
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Whether you’re just launching your creative career or you’re already a decade-plus into it, your work gives you a lot to think about each day—and retirement planning probably isn’t at the top of the list.
That’s why The Creative Ladder partnered with Robinhood to host a virtual event all about retirement planning for creative professionals.
Certified Financial Planner Kerrie Carden, founder and CEO of Equip Advisory, shared a wealth of knowledge with attendees, and her insightful tips demonstrate that planning for your golden years doesn’t have to be daunting or even all that demanding.
Here are five takeaways from her talk on retirement planning for creative pros:
1. Saving for the future doesn’t mean depriving yourself today.
A common misconception about saving for retirement is that it must come at the cost of small pleasures, like the occasional chai latte or avocado toast.
But Carden emphasized that planning for retirement is not synonymous with cutting out today’s modest pleasures. “If that latte is one of the best parts of your morning, then it’s important,” she said. “Balancing those priorities is as much about making sure you feel happy and joyful now as it is about saving and putting away for the future.”
Saving should be something you take pride in and feel accomplishment from, not something you grow to resent for stripping away all the little joys in life.
2. Get to know the savings plans tailored to freelancers and entrepreneurs.
Creative professionals likely know about popular retirement savings plans such as a workplace 401(k), but what many might not know is that there are similar savings plans for freelancers and entrepreneurs running small businesses.
A Solo 401(k), for example, tends to work best for those who have consistent freelance/solopreneur income, Carden said, while a SEP IRA (short for “Simplified Employee Pension - Individual Retirement Account”) can be a strong option for those whose income is inconsistent month to month. A small business with less than 100 employees might want to consider offering a Simple IRA, which requires employer contributions to a staffer’s retirement savings.
By taking advantage of plans such as these, creatives can optimize their savings, benefiting from tax breaks and flexibility that might have felt only available for employees at large companies.
3. Create goals and habits that are achievable.
Once you’ve committed to saving for retirement, it can be tempting to set a lofty savings goal that ends up proving unsustainable or even unreachable.
Instead, Carden suggests, you should focus on practical goals that will serve as stepping stones toward even larger accomplishments.
“Set yourself up for the win,” Carden said, noting that if setting aside $100 per paycheck proves too difficult for your current situation, set the goal at $50 and then build on that success once you achieve it. “That sense of a win builds on itself.”
4. View every win as a victory.
Every achievement when it comes to retirement savings can empower creative professionals to focus even harder on planning for the future. But sometimes what might seem like a setback is also a win, Carden said.
“Had to pull money out of your emergency fund to cover unexpected car repairs? That’s a win, because you prepared for an emergency,” she said.
Instead of feeling like you’re losing ground on savings when moments like these arise, she said, be proud that your commitment to savings left you in better shape than you would have been.
“Those milestones, those wins, will help motivate you toward the future you’re trying to build to,” she said.
5. Set your own pace
Saving for retirement is a highly personal issue. As you determine your goals and habits, it’s possible you’ll feel pressure both from yourself and from others looking to influence your decisions.
But Carden emphasized that you should always remember that you’re in charge of your choices and not let anyone sway you on financial decisions by emphasizing the sense of urgency.
“If someone makes you feel pressured, [remember] you’re on your own timeline,” she said.
“Don’t let anyone push you to change that timeline. It is OK for you to take time to fully understand what you’re putting your money into. Feel comfortable to pump the brakes any time you feel pressured to move at a pace that’s not your own.”
Robinhood, The Creative Ladder, Equip Advsiory and all third parties named are separate and unaffiliated entities, and are not responsible for one anotherʼs policies, services, or opinions.
The information provided here is for general informational purposes only and is not an individualized recommendation of any security, digital asset or investment strategy. This should not be considered tax or investment advice. For specific questions, you should consult your tax or investment professional.
All investments involve risk and loss of principal is possible.
Robinhood Financial LLC (member SIPC), is a registered broker dealer. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services. All are subsidiaries of Robinhood Markets, Inc. (‘Robinhood’).