Let's talk about retirement

I was having a frank conversation with my dad last week. He’s in his sixties and currently medically disabled with kidney disease. Despite working his entire life since he was thirteen, he confessed that he had no retirement savings or plan for his elderly years. He cautioned me to not walk this path the way he did. So now I’m warning you guys.

What can we do now to prepare for our future as authors?

1. Start with Understanding Your Financial Picture

As an author, your income might be variable, which makes it even more important to have a clear understanding of your financial situation. Track your income and expenses diligently, and use this information to make informed decisions about savings and investments.

2. Diversify Your Income Streams

Relying solely on book sales can be precarious. Consider diversifying your income streams. This could include speaking engagements, writing workshops, freelancing, consulting, or even teaching. Royalties from audiobooks and foreign rights sales are also options. Diversifying helps buffer against fluctuations in book sales and provides a more stable income as you approach retirement.

If you've been here long enough, you know I was laid off as a professor in 2018. Half of my income came from teaching screenwriting. The other half, thankfully, came from writing books. Still, that loss of income hurt. And it pissed me off. Which made me work twice as hard at this author gig because I didn't want the rug pulled out from me ever again. It's also why I have my books, my Intellectual Property (IP), in as many streams, ponds, and oceans as I can place them. I will not be reliant on any one entity ever again.

3. Retirement Savings Plans

Look into retirement savings options available to self-employed individuals or small business owners. In the U.S., options like a Solo 401(k), a SEP IRA, or a SIMPLE IRA can be particularly advantageous because they allow you to save a significant portion of your income while also offering tax benefits.

I have a Chase business credit card. They also have retirement plans that I can manage myself or hire one of their advisors. It's worth looking into if the bank you already do business with has any options.

4. Invest Wisely

Investing can be a powerful way to grow your retirement savings. If you're not sure where to start, consider speaking with a financial advisor who can help you understand your options based on your risk tolerance and time horizon. Investing in a mix of stocks, bonds, and other assets can help grow your wealth over time.

5. Plan for Healthcare Costs

Healthcare is often one of the most significant expenses in retirement. Research health insurance options and consider investing in a health savings account (HSA), if eligible, which offers tax advantages and can be used to pay for medical expenses now and in retirement.

6. Build an Emergency Fund

Before focusing solely on retirement, ensure you have an emergency fund that can cover at least six months of living expenses. This fund can be a financial lifesaver in case of unexpected expenses or fluctuations in your writing income.

They way I like to run my empire, is that once I have that six month of savings, everything else goes to retirement. I don' have expensive tastes… unless it comes to journals and stickers and pens, which are relatively cheap. Any other disposable income goes to experiences like taking family vacations. Take a look at your spending habits and see where you may be able to find an extra few pennies to rub together. Then decide where the best place is to put them for safe keeping.

7. Think About Your Legacy

As an author, your books can continue to generate income even after you retire. Consider how you want to manage your intellectual property in the long term. Estate planning with the help of a professional can ensure that your royalties continue to benefit your loved ones or chosen causes according to your wishes.

8. Keep Learning and Adapting

The publishing industry changes rapidly, and staying informed can help you make better financial decisions throughout your career. Regularly educate yourself about both the industry and financial planning to stay ahead.

9. Retirement Goals and Lifestyle

Consider what kind of lifestyle you want in retirement. Do you wish to travel, relocate, or pursue hobbies that you may not have had time for? Understanding these goals can help you plan more effectively in terms of how much you need to save.

Planning for retirement may not be the most fun or sexy part of being an author, but it's undoubtedly one of the most critical. Starting early, planning wisely, and adjusting as you go can make a huge difference in your later years, allowing you to enjoy the fruits of your labor without financial stress.

Want to watch me plot, draft, and revise a story live?

I wrote and revised a book in 24 days and vlogged about it on social media. Today (Monday, February 17th), I’m starting a brand new romantasy manuscript. I’m going to plot it using the Five Necessary Scenes. Then flesh it out with my Page turner Pacing points. Add the genre beats of Romantasy. Then write it chapter by chapter -likely two chapters per day. And finally, revise it. All on Tiktok, Instagram, and Youtube. I’d love for you to follow along to see my process in action.

It will be the same content across each social platform. You choose your favorite. Or you can follow me on all of them!