The Magic Café
Username:
Password:
[ Lost Password ]
  [ Forgot Username ]
The Magic Cafe Forum Index » » Tricky business » » Retirement (0 Likes) Printer Friendly Version

 Go to page 1~2~3 [Next]
Scott Burton
View Profile
Inner circle
1131 Posts

Profile of Scott Burton
For the other full time performers out there:
How do you determine how much money you invest towards your retirement?

Do you:
- designate a certain set % of your revenue or profits?
- have an amount calculated based upon your goal standard of living in retirement?
- just contribute whatever is left in the bank account at the end of the year?

I contribute to RRSPs (Canadian tax-deductable retirement savings plan) monthly and have been increasing that amount consistantly. However, I never know if I'm doing enough. I'm 31 and just 4 years into doing this full time BUT I would still like to make sure that everything is secure for the future.

Perhaps...I will never want to retire fully. However, you never know when an illness will strike and retirement is forced upon you.

I would love to hear your thoughts and strategies.

Posted: Apr 1, 2010 10:04am
Hmmm...85 views and no strategies shared. No one thinking about this or is everyone keeping their strategies hush-hush? Let me know

I would argue that thinking of this stuff is an extremely important part of running a "Tricky Business". After all, it's a career and one that should be taken seriously.

If anyone is kind enough to offer their views, lessons learned, and experiences, I would still love to hear it!

Wishing you success,
Scott
Al Angello
View Profile
Eternal Order
Collegeville, Pa. USA
11047 Posts

Profile of Al Angello
Scott
I am retired. I rely on social security, a modest pension, and I am a full time juggler/magician. I hope you develop a better plan than I did, but I am living comfortably.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
Scott O.
View Profile
Inner circle
Midwest
1141 Posts

Profile of Scott O.
Strategy? Isn't the government supposed to take care of us?

JUST KIDDING! That's my April fools joke for the day.

Always a good idea to have an exit strategy. Never wait until the end of the year and just invest whatever is "left over" -- there won't be any leftovers. One needs to make a plan and stick to it. Decide upon a set amount- like Scott did - and put that aside out of every dollar earned. Put it in an IRA of some kind (here in the USA). If you manage to max that out in a given year, find other investments. But don't spend the money.

One of the other things to look at is diversification and leverage. As a sole proprietor, we tend to run the the whole ship pretty much alone. If something happens to you though, what happens to the business. Is there one? For most of us the answer is no. So I'm thinking on alternative streams of income. What activities would be synergistic with my role as an entertainer but be able to continue even if I couldn't? How can I leverage my time?

That's where all the Magic Marketing guru's are coming from. That's what entertainers/dealers are thinking about. That's what the entertainment agencies are doing.

The trouble is most of us are entertainers because that's what we want to do. We may not be the best business people though. But the smart money is on the people who can find ways to leverage their time and create streams of income that are not dependent upon standing in front of an audience.
Do not become weary in doing good, for at the proper time you will reap a harvest, if you do not give up. Galatians 6:9
Al Angello
View Profile
Eternal Order
Collegeville, Pa. USA
11047 Posts

Profile of Al Angello
On a slightly different subject. I know two magicians that died recently without health insurance, and left their families with an overwelming hospital bill that forced them to declair bankruptcy. It is good that self employed people in the US will soon be able to afford health insurance.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
Scott O.
View Profile
Inner circle
Midwest
1141 Posts

Profile of Scott O.
From my understanding we are only going to be mandated to buy health insurance. No one is expecting the cost to go down. In fact, I fully expect the costs to go up as insurance companies are now going to be forced to take everyone -- regardless of past health problems. Great for those people, but insurance companies have to turn a profit and the addition costs will be passed on to the consumers.But, as you said, that is another subject.
Do not become weary in doing good, for at the proper time you will reap a harvest, if you do not give up. Galatians 6:9
Al Angello
View Profile
Eternal Order
Collegeville, Pa. USA
11047 Posts

Profile of Al Angello
Scott
I hope that your guess is wrong.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
millste
View Profile
Regular user
123 Posts

Profile of millste
As someone who's best friend works for one of the big insurance companies, I can say that Scott is exactly right about the bill. Costs will skyrocket and you will be fined if you do not buy it. Eventually, it will put insurance companies out of business or they will deny care in order to be able to absorb the costs of having to cover everyone with any condition.
Al Angello
View Profile
Eternal Order
Collegeville, Pa. USA
11047 Posts

Profile of Al Angello
You can't scare me with gloom and doom scenarios.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
millste
View Profile
Regular user
123 Posts

Profile of millste
Not trying to scare you, you will see as time goes by.
Al Angello
View Profile
Eternal Order
Collegeville, Pa. USA
11047 Posts

Profile of Al Angello
The sky is not falling chicken little.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
Sealegs
View Profile
Inner circle
The UK, Portsmouth
2574 Posts

Profile of Sealegs
Get a good financial adviser.

Put away as much as you can.

Diversify as much as you can.

Try to avoid getting divorced. hasn't happened to me but it's been financially crippling to those I know who have.
Neal Austin

"The golden rule is that there are no golden rules." G.B. Shaw
rockwall
View Profile
Special user
762 Posts

Profile of rockwall
Hey, performing magic is going to be MY retirement! LOL, at least that's the plan.
Scott O.
View Profile
Inner circle
Midwest
1141 Posts

Profile of Scott O.
Chicken Little aside, there really is no doubt that a government-run ( or controlled) program will be less efficient and more prone to cost over-runs than a for-profit company. Name a program run by the government that is less expensive and provides better service than a private sector business.

This new health care law is a good example. The government is making decisions and forcing the insurance companies to make a bad business decision. Costs have to go up. Its a forgone conclusion if they have to insure people that are more likely to visit doctors and more likely to go to the hospital, then the insurance companies will need to raise rates on everyone to cover their costs.

Will this collapse the system (make the sky fall)? Not by itself, but there are plenty of other things in the works that are dragging on the economy. My advice -- get your financial house in order. Don't carry any credit card debt, pay off your mortgage. Drive a car that you can afford to pay cash for. And invest the extra money in a very diverse portfolio.
Do not become weary in doing good, for at the proper time you will reap a harvest, if you do not give up. Galatians 6:9
Scott Burton
View Profile
Inner circle
1131 Posts

Profile of Scott Burton
I live in Canada and health care is not something we need to think or worry about. I like that but I don't know any different.

Thanks for all the contributions!
Gerry Hennessey
View Profile
Special user
855 Posts

Profile of Gerry Hennessey
Scott

I think the answer to your question starts by defining "retirement"?

Most people I know "baby boomer" age, don't know what retirement means anymore. Many are confused thinking that it meant nothing to do and all day to do it. Now, boredom has set in and the pension that they worked so diigently for has little meaning as they plan to continue working, not out of need, just out of a need to be productive and involved in life.

As Magicians and Mentalists we have a iifetime skill and therefore a lifetime of potential income. How old was The Professor?. How old is John Calvert? What would have been the value to these gentlemen of a fat pension?

The quality of your retirement should be (imho) defined by your health, your skill and your creativity, not your income.

Best
Gerry
"Every discipline effects every other discipline. You can't straighten out the corporation if your closet is a mess" Jim Rohn

GerryHennessey.com
Chad C.
View Profile
Inner circle
1521 Posts

Profile of Chad C.
Both my wife and I put in the maximum amount possible into Roth IRA's as they are tax free here in the US. Dave Ramsey ( http://www.daveramsey.com ) recommends putting 15% of your income into retirement savings, aka mutual funds. Doing this for many years should get you an average 12% return on your investment each year and if you can live off of 8% of it each year once you retire you'll still be gaining money (4%) each year. If you start early, compounding interest is your best friend in the world.

Also, as mentioned above, pay cash for your good used car, pay off your house, and don't have any credit card or any other debt - you'd be amazed what you can put into retirement when you don't have any debt or a mortgage payment. The earlier you get on track the better it will be.

I just turned 30 and our house will be paid off by this coming year and the house payment will turn into extra monthly payments for retirement on top of the Roth IRA's we already max out each year.

Debt free is the way to go.

Chad

PS. Oh, and as also pointed out above, retirement for me is doing what I enjoy, which is what I already do...then I can simply choose to do a little more or a little less of it, or maybe do something that doesn't make quite as much money but is a type/branch of magic that I simply enjoy and can make a little money with it on the side...I love having this type of career!

PSS. Now that the gov't will soon be forced to get more in taxes to fund the healthcare for all, our retirement earnings are probably going to be taxed, which really, really ticks me off as I have already paid taxes on that money - don't stinkin' punish me for being smart with my money and putting it aside for the future. Stupid gov't...ok, rant over...
Scott Burton
View Profile
Inner circle
1131 Posts

Profile of Scott Burton
I totally agree that retirement means (and should mean) different things to different people. As with anything, you should have a vision then go after that.

Personally, I can't see myself ever not doing anything (it's just not in my personality). I LOVE what I do and often say that I "am" retired as I don't have to "work" (meaning a job - nor does my wife) and get to do what I absolutely want to do every day of my life! I am so honored to live a life that is so perfectly aligned with who I am and my interests. I live today what many people strive for in their "retirement". I'm even taking the entire 2 months of summer completely off this year to have fun with the family and am so honored and thankful that I can do that while the kids are still young.

My goal for retirement: have the FREEDOM to CHOOSE. I want to know that I don't HAVE to work to support myself at an older age. I don't know what will be running through my head in 35 years (or whatever amount of time) but I certainly don't want to run into the position where I HAVE to work regardless of my health or desires at the time.

My accomplishments (however modest) have always come from intense planning (then acting on those plans). I know that it's the earlier the better to get things things in line for retirement. I have been contributing for years but I want to make sure that everything is set for success in this area.

I appreciate your contributions and I also hope that, in my quest for knowledge, I have inspired some others to get serious in this area as well.
MikeClay
View Profile
Special user
Atlanta GA
753 Posts

Profile of MikeClay
Diversify.....

Being retired and doing this full time is not the same as doing this full time your whole life. You have to diversify especialy with the cost of living DRASTICLY going up over the next few years (forced healthcare is going to be huge, my wife will be losing her job because of this bill, because her company can't afford the increase in costs) ..

Many LARGE companies have already announced layoffs being planned to balance out the increased costs of the new healthcare bill.. this isn't gloom and doom.. this is a harsh reality that is now lowering the standard of living for my children..

if your not actively diversifying and getting multiple streams of income your in for a very hard road.

It looks like I am going to have to fire my 2 employees and let my wife do their job just to keep the cost of running my companies from SKYROCKETING (this isn't greed, the costs of paying for the new things I will have to pay will bankrupt the company)

to retire is currently a mystery to me.. right now the goal is to still be able to afford my child's education (cause the public schools system is a joke) and survive the loss of my wifes job, and figure out how to keep the 3 companies afloat with no staff.
Steve_Mollett
View Profile
Inner circle
Eh, so I've made
3010 Posts

Profile of Steve_Mollett
Quote:
On 2010-04-01 15:46, millste wrote:
As someone who's best friend works for one of the big insurance companies, I can say that Scott is exactly right about the bill. Costs will skyrocket and you will be fined if you do not buy it. Eventually, it will put insurance companies out of business or they will deny care in order to be able to absorb the costs of having to cover everyone with any condition.


What about all the formerly-deliberately-uninsured who will now add to the company profits?
Author of: GARROTE ESCAPES
The absurd is the essential concept and the first truth.
- Albert Camus
Al Angello
View Profile
Eternal Order
Collegeville, Pa. USA
11047 Posts

Profile of Al Angello
Steve
Save it they are looking for a boogie man, and no amount of common sense will change their minds.
Al Angello The Comic Juggler/Magician
http://www.juggleral.com
http://home.comcast.net/~juggleral/
"Footprints on your ceiling are almost gone"
The Magic Cafe Forum Index » » Tricky business » » Retirement (0 Likes)
 Go to page 1~2~3 [Next]
[ Top of Page ]
All content & postings Copyright © 2001-2020 Steve Brooks. All Rights Reserved.
This page was created in 0.22 seconds requiring 5 database queries.
The views and comments expressed on The Magic Café
are not necessarily those of The Magic Café, Steve Brooks, or Steve Brooks Magic.
> Privacy Statement <

ROTFL Billions and billions served! ROTFL