Need some advice about life/money/security

qervo · #1 03-07-2013, 07:23 AM

Ok what would you do? I'm 39 and up until now I have made a living off of playing music . It's been strictly cash all my life and there is no 401k or social security for me. I know all this time I should have been preparing for the time that I would no longer be able to play and would need income, but that's not how it happened. Today I asked myself "what would become of me if my wife (bread winner) and I divorced? No resume, except for musician, and no income for retirement . It made me think if I got a Real 9-5 job today, would I have enough time to save / invest so that I won't have to be greeting people at Walmart when I'm 75? Social security is not a answer for me because I've got nothing invested in it. I was thinking perhaps own some small rental homes once I save to afford it but even then it's not a steady guarantee of income. So I pose the question:
Is it too late for me?
Would working for the next 20 years secure me at all?
What would you do?

qervo · #2 03-07-2013, 07:28 AM

My father always said "you can't play music for the rest of your life", but I was foolish and always said yes I can. Now that I'm not a young buck anymore , I see he is right and I admit I have not made good choices. I'm going to be 40 this year and I feel like it too. So I have to make changes now. Any financial advisors out there?

P Town · #3 03-07-2013, 07:28 AM

Get a real job, and be real nice to your wife.

qervo · #4 03-07-2013, 07:36 AM

I agree. There's another problem I didn't mention. This is kind of hard to admit but , my wife is a jewel. We truly fell head over heels in love 9 years ago. Later in our marriage I found out that she was a mentally / somewhat physically abused as a child . Her parents don't hit her anymore but the mental hold they have over her is staggering. She's been to therapy about it but had to stop because of money issues. I know we want to spend the rest of our lives together but her strange background and parents are really putting a wedge between us. It's as if she has it in her head that she's no good ( from hearing it at home all her childhood) . I build her up and support her emotionally but the past always comes to haunt her and me. If we divorce it won't be because of me, it will be because of the demons in her head. This got me thinking, what would I do if I were on my own again?

RxFunk · #5 03-07-2013, 07:48 AM

Yes, get a job, and so long as your combined income(you and your wife together) is less than $150,000/year start funding a Roth IRA. Put 15% of your annual household income into these plans(if financially able to do so, of course). First, fund your 401k plan up to the employer match(if there is a match), even if there is no match still fund this first. Then, fund your Roth IRA to the maximum annual contribution($5,500 for 2013). If there is money left over from your initial 15% of household income, go back and put the rest of that into your 401k. Also, the Roth IRA grows tax-free, so when you go to withdraw it(after you are at least 59 and six months) there will be no taxes/ penalties taken on your money. Good luck.

qervo · #6 03-07-2013, 07:51 AM

Thanks. I'll look into the Roth IRA .

alembicguy · #7 03-07-2013, 07:53 AM

Get a job and start putting away as much as you can and continue gigging if possible.

qervo · #8 03-07-2013, 08:01 AM

If I funded a Roth IRA for the next 20 years , I may be minimally ok. First we would have to find daycare for kids . Right now I'm mr.mom. We moved 6 hours away from her parents hoping it would solve the strangle hold that they have on her, but as it turns out, the force is strong with those two no matter where we are . Now we have no family help for babysitting. I know this is not a therapy site but I figured some fellow TB'ers might have been there and done that as far as living a life of just music. And I know there are some great people on here who have managed to do both the job and gig. Maybe I'm just freaking out but today it hit me hard. Through no fault of my own I still run the risk of losing her and that would really leave me in a bad situation. Time to make some big life decisions.

scorpionldr · #9 03-07-2013, 09:44 AM

Quote:

Originally Posted by alembicguy

Get a job and start putting away as much as you can and continue gigging if possible.

And on more than one instrument if possible.

UncleFluffy · #10 03-07-2013, 09:47 AM

Quote:

Originally Posted by RxFunk

so long as your combined income(you and your wife together) is less than $150,000/year start funding a Roth IRA.

There are ways of funding a Roth even if you make more than this. Talk to a professional if you're lucky enough to be in this situation.

Quote:

Originally Posted by qervo

Is it too late for me?

You've lost some of the opportunities, but not all.

Quote:

Originally Posted by qervo

Would working for the next 20 years secure me at all?

A lot more than if you do nothing.

Quote:

Originally Posted by qervo

What would you do?

I moved around a lot and never thought about retirement as much as I should until my mid 30s, so I started later than most as well. I'm lucky enough to have a day job that pays reasonably well so I'm catching up as fast as I can, but that lost period of compound interest will hurt.

Spend less than you earn and save the difference in the best (most tax-advantaged) way available. How much to save? Start here:

https://www.fidelity.com/retirement-planning/overview

https://www.fidelity.com/retirement/...nt-calculators

qervo · #11 03-07-2013, 09:49 AM

Quote:

Originally Posted by scorpionldr

And on more than one instrument if possible.

That's possible .I do play keyboard , rhythm guitar and drums.

qervo · #12 03-07-2013, 09:54 AM

I just moved to a new town and I need to get some business cards or some advertisement for myself. I'm having to establish new contacts all over again.

GregC · #13 03-07-2013, 09:56 AM

Quote:

Originally Posted by RxFunk

Yes, get a job, and so long as your combined income(you and your wife together) is less than $150,000/year start funding a Roth IRA. Put 15% of your annual household income into these plans(if financially able to do so, of course). First, fund your 401k plan up to the employer match(if there is a match), even if there is no match still fund this first. Then, fund your Roth IRA to the maximum annual contribution($5,500 for 2013). If there is money left over from your initial 15% of household income, go back and put the rest of that into your 401k. Also, the Roth IRA grows tax-free, so when you go to withdraw it(after you are at least 59 and six months) there will be no taxes/ penalties taken on your money. Good luck.

Good advice. OP, it's never too late. Sure, it would have helped greatly to start saving in your 20s (I wish I had), but you still have a lot of years till you hit retirement age--compounding investment gains over 25+ years can be very powerful! Just save wherever you can. Best of luck.

scorpionldr · #14 03-07-2013, 09:56 AM

Quote:

Originally Posted by qervo

That's possible .I do play keyboard , rhythm guitar and drums.

Craigslist might be up your alley for finding bands.

mkandolf · #15 03-07-2013, 10:25 AM

Dave Ramsey's Financial Peace University course and book. All about financial management and living for the future. Great resource.

placedesjardins · #16 03-07-2013, 02:01 PM

Quote:

Originally Posted by qervo

My father always said "you can't play music for the rest of your life", but I was foolish and always said yes I can. Now that I'm not a young buck anymore , I see he is right and I admit I have not made good choices. I'm going to be 40 this year and I feel like it too. So I have to make changes now. Any financial advisors out there?

It's not too late. You are a bit behind in the savings game but, if you look at it like you have 25 years to build a nest egg, then it's not late. Now is better than never.
What you do for income is up to you? How much you save is also up to you. Now that you've realized this, you can think of yourself as a 65 year old going back to the future telling your 40 year-old self to work and save.

RxFunk · #17 03-07-2013, 02:40 PM

Quote:

Originally Posted by mkandolf

Dave Ramsey's Financial Peace University course and book. All about financial management and living for the future. Great resource.

This, I'm taking a class based solely on Dave's teachings. That's where I got all my information from for my first post here.

qervo · #18 03-07-2013, 02:41 PM

Quote:

Originally Posted by placedesjardins

It's not too late. You are a bit behind in the savings game but, if you look at it like you have 25 years to build a nest egg, then it's not late. Now is better than never.
What you do for income is up to you? How much you save is also up to you. Now that you've realized this, you can think of yourself as a 65 year old going back to the future telling your 40 year-old self to work and save.

That's a good point.

qervo · #19 03-07-2013, 02:43 PM

Quote:

Originally Posted by RxFunk

This, I'm taking a class based solely on Dave's teachings. That's where I got all my information from for my first post here.

I can't take a class but I will buy the book.

guitar ed · #20 03-07-2013, 05:03 PM

You ask, what could you do? As if playing music with a group for 20+ years has left you with out skills.

Sir, I beg to differ. Pull your head out of your rut, and reconsider.

What other skills might you have? You might not have done all of these, but I bet you have done some.

Sales: Cold calling venues and getting your band on stage.

Marketing: Designing and distributing promotional literature, web sites, social marketing, etc.

Accounting: Handling all the income and distributing the proceeds.

Logistics: Humping gear into and out of venues, packing & unpacking said gear efficiently.

Teacher: Showing/telling bandmates how to play a song.

Personnel: Hiring & firing of musicians.

Working under stress: Setting up for a show with a minimum amount of time.

Experience setting up & running audio systems, using <types of gear>.

Cast your mind back through all of the things that you have done. Write them down in a list, then expand on them. Don't think of them narrowly, but widely as I did above. You might be amazed at the skills you have built up.

edg