Retirement? For Artists? Aren’t We Just Supposed To Paint Until We Die?

Do artists ever really retire? Should creatives even think about retirement, I mean, we’re going to create all the way up to the day we die, right? I’m going to start this post by saying, these are my opinions and you should consult with a qualified financial planner before taking the advice of a part time painter who holds down a full time job to make ends meet. However, I can tell you that I have spent decades planning to retire one day and I obsess over numbers. I can save you some time and get you pointed in the right direction.

First, Happy Father’s Day to the dads here; I hope you are having a great day. I’m also going to say a great many of you reading this post have a regular job outside of making art. If your employer offers any sort of retirement planning, I urge you to take advantage of it. For some of us working as traditional painters, this alone can be worth having a regular job in addition to your fine art endeavors.

Seriously, can we stop with the idea that full time and part time are all that differentiates us? I mean, I know a lot of part time artists who make more selling art than they do working a regular job. They choose to work for the healthcare and retirement benefits.

Let’s start with a few tips:

As an artist, planning for retirement can be a bit different compared to traditional careers. The following list may be helpful for you when planning for retirement.

1. Build a Solid Emergency Fund: Ensure you have an emergency fund with at least three to six months' worth of living expenses. This will provide a safety net during any unforeseen circumstances or periods of lower income. I would do this even if you have a regular job supporting your cost of living.

2. Budget and Track Expenses: Maintain a budget to understand your income and expenses. Tracking your expenses will help you make informed decisions and ensure you're saving enough for retirement. I fail at this one a lot. Who wants to live with restraints, right? All joking aside, it will be hard to plan when you don’t know what you’re spending.

This budget can also help you determine what you might need in 10-20-30 or more years from today. I often use 2.5% as a way to increase the cost of living and how to think about lifestyle inflation.

3. Save for Retirement Regularly: Establish a retirement savings plan and contribute to it consistently. This could be an individual retirement account (IRA) or a self-employed retirement plan like a Simplified Employee Pension (SEP) IRA or a Solo 401(k). Make it a priority to contribute a portion of your earnings regularly.

If your employer offers this with a match, you could save even more. I’ve always been told by people who are much better at this stuff than most of us that we should plan to save at least 15% of our Gross Income.

Also, if your regular job offers a pension, that might be worth sticking around long enough to get it. I mean, I know, we all want to be sipping cold drinks on the beach but a few extra years to get a pension could make those cold drinks more affordable.

4. Diversify Your Income Streams: Relying solely on art sales can be unpredictable. Explore other avenues to diversify your income, such as selling prints, offering art classes, licensing your work, or taking on commissions. This can provide stability and additional financial support during retirement.

If you are like me, and have a regular job, you can think of that job as another income stream rather than feel like you’re not as successful as the full time artist you see doing those silly “reveals” on social media where it takes 90% of the video to turn the canvas around to show you a picture of what they painted. I know, I am an ass…I just hate those reveals; it annoys me.

5. Network and Collaborate: Engage with other artists and art communities to expand your opportunities. Collaborating with fellow artists or participating in group exhibitions can boost your exposure and potentially increase your income.

This is sound advice anyway. You could learn how a fellow artist is saving for retirement or learn of a financial planner with experience working with creative professionals.

6. Protect Your Work and Intellectual Property: Consider copyrighting your artwork and taking steps to protect your intellectual property. This can help you generate income through licensing agreements, reproductions, or other commercial opportunities even after you retire.

DO THIS ANYWAY! Your work is your work, but you should have it legally recorded so that you can protect yourself from enterprising thieves.

7. Seek Professional Guidance: Consult with a financial advisor who specializes in working with artists or creative professionals. They can help you navigate the unique challenges of planning for retirement in the art industry and provide personalized advice based on your circumstances.

I’m not making a suggestion here. This one is important and helpful. Most professionals in this field can help you plan for what you’ll need when you retire or start to slow your production down as you get older. They can help with regulations, laws, and all the things your buddy tells you that “might” work.

8. Plan for Long-Term Care: Consider the potential need for long-term care in your retirement planning. Investigate insurance options or explore setting aside funds to cover any future healthcare needs.

Conclusion

Remember, retirement planning is a long-term endeavor, and it's crucial to regularly review and adjust your strategies as your circumstances change. If you are in your 50s and think you are out of time, you are not. If you are in your 20s, you can save a lot of money from compounding interest alone so you have an unfair advantage you should be capitalizing on.

I’m going to leave you with something to think about. Leaving taxes and healthcare costs out of the numbers, how much money do you need to keep living like you do today? If you total up all of your retirement income and take a 4% draw on your savings that hopefully gets you a 7% return, will you still be able to live like you do now? How much debt do you have and how much debt are you willing to have in retirement? Can you afford healthcare based on what you are coming up with?

In just 20 years, things will be about 50% more than today due to conservative figures on inflation. That means, that $1,000 dollars will have to be $1500 to have the same buying power. I told you I obsess over this stuff. I could write another 40,000 words and still have more to share. I want you to use this post as a kick in the ass to plan today so you will be prepared for tomorrow. I’m not saying you need to cut that coffee shop out of your life or to stop spending money on Netflix. I’m saying, have a plan that fits your lifestyle.

None of us live forever, and you can’t take it with you. I get that! But don’t spend your last years living like a hermit without enough money to enjoy the time you have.

• Save until it hurts and save more

• Don’t let interest on debt be more than 7% (yes, credit cards are bad if you hold a balance more than 30 days)

• Try to invest in index funds that historically give you a 7% return

• Spend money on memories not stuff

• If you must buy stuff, make it something you really need and think twice before buying everything you want. That $1500 you spent on something you really didn’t need could compound to $8,588 just letting it sit for 25 years! Not to mention, $1500 today will be worth $2400 in 25 years based on inflation. That $8500 will go further than whatever you bought for $1500 that most likely depreciated in value.

I say all of this because I wish I would have listened to my grandparents and parents when they tried to explain this to me when I was younger. Fortunately, some of it stuck and I did manage to put some money away. But, I could have a lot more and be able to retire at 50 (now) and sell art for mad money rather than still planning and looking at 60 to retire.

Have a great day, and I hope this gets you thinking so you’ll plan and be prepared to sip that cold drink on the beach or have more time for family when it really matters. Don’t have a plan to work until the day you die for stuff and paying your creditors until the last minute you have on this planet.