Wealthy Photographer?

March 29, 2015  •  Leave a Comment

This has been getting to me for a little while.  I hear a lot of popular photographers say that you won't make a lot of money being a photographer, or you won't get rich being a photographer.  While, I do agree you may not make a lot of money, I disagree with the being wealthy.

Wealth is determined by all your accounts, including retirement.  The big question becomes, what is wealthy?  To each person it is a different answer.  Some, it maybe $500,000, others it would be $500 million.  Most photographers aren't going to do the Peter Lik  thing by selling a $3.5 million photo.  Chances are you may not even get the $1.2 million from a lawsuit.

However, if you put the recommended 15% of your income into an IRA or Roth IRA, you will have at least a million to retire on.  Is that Wealthy?  You tell me.  Is it difficult to invest 15%?  If you are debt free and have your emergency fund, look in your budget.  According to the IRS, you can put $5,500 into an IRA.  If you have a spouse, each of you can have an account, even if your spouse is not working.  So, that brings the total up to $11,000 a year.  You can contribute the same amounts to a Roth IRA, which is tax already taken out.  

Let's say you invest $11,000 over 30 years at a 15% interest rate.  That would equate to $4.8 million in your retirement account!  That's just saving $917 per month, or $30.13 per day.

I am not a full-time photographer, so I don't completely understand the challenges that a full-time photographer has.  What I do know is that you need to secure your own retirement.  Do what you can so you can retire with dignity.

 

Blessings,

Andrew Krob

I am not a financial advisor, nor a CPA.  Please talk to one of them for more information.


Comments

No comments posted.
Loading...

Subscribe
RSS
Archive
January February March April May (1) June July August (1) September October November (1) December
January February March April May June July August September October November December (2)
January February March April May (2) June July (1) August (1) September October November December
January February March April May June July August September October November December
January February March April May June July August September October November December