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Column: Financial Write

Retiring as a Writer

by Rose Walker

When I use to think about retiring, my vision was getting a gold watch and a retirement package from the company that I had worked for, for years. But now that I’m a writer, how will I retire? I won’t get a watch or a retirement package because I work for myself. If I want to stop writing in my wonderful old age, what should I do to get ready for retirement?

As a writer you have to start preparing your life for retirement right now. The first thing you need to figure out is how much retirement income you will need? Since you became a writer, I’m sure your cost of living has been low. Most writers who write full-time keep their cost of living down, because of income as a writer can be periodically and sometimes we can be without a cash flow between assignments. Base your retirement income on how you’ve been living as a writer. That way you’ll be comfortable after you decide you might not want to write anymore or not write as much as you did. You’re use to living that way so it won’t be hard to set your life up to continue living that way.

If you have been fortunate to write novels that have sold and you’re receiving royalties from your books, take that money and put it into an account for retirement. Start living off your other income from freelance work, columns and any other articles you sell. That way you don’t have to touch your royalty money and it can go directly into an account for retirement. If you’re not getting money from royalties to set aside, pick another one of your sources of income not to touch to save for your retirement. You have to have your own source to set aside for retirement, because no one will give you a pension plan when you decide to stop writing. You have to start setting up your funds for retirement right now, even if you’re years away from even thinking about not writing.

As a writer you need to prepare your life for retirement now, it’s time for you to formulate a plan where to put your money. A Keogh plan is a good place to put your money for retirement. A Keogh plan is tax-deferred retirement plans designed to help self-employed people who earn self-employed income establish a retirement savings program. The Keogh plan has the highest contribution limits, you can contribute up to $40,000 or 25% percent of your earnings, or which ever is less. Money in a Keogh plan grows tax-deferred.

Whatever financial vehicles you decide you want to put your money into for retirement, the most important thing is to get started on it now. Now that you’re a writer don’t put off planning for your retirement any longer. Make a commitment to start planning for your retirement now and the compound returns will work for you. Planning your retirement gives you the power to turn your retirement dreams into

reality.

Copyright © 2003 Rose Walker. All Rights Reserved.

Rose Walker is an author, freelance writer and columnist. After being in Corporate America for twenty-three years as a banker, mortgage banker and owning her own financial consulting firm, she walked away to become a writer. She has written two novels and currently at work on her third one. Ms. Walker is a contributing writer for Successful Single Parenting Newspaper. She also writes a monthly column for Single Focus Newsletter, called Money Matters. Her articles on parenting, health, finance and career, have been published by Themestream, PageWise, The Writing Parent, IslandOak and Working Writer. Ms. Walker lives in Memphis, Tennessee.