The title “digital nomad” exudes freedom; can we agree? It’s true. Any freelance writer will tell you they have experienced rebirth the moment they quit their old corporate job and entered the eternal casual Friday. The moment you become a freelancer, you belong to no one. You set your own working hours and your shape-shifting office location, and you can wear a kimono until the day you die. This lifestyle gives us a sense of control; we don’t feel enslaved or confined. We are butterflies, flitting from flower to flower, sunbathing, and feeding on the sweet nectar of life. At least, that’s what we thought. The reality is a bit bleaker than anticipated; many freelancers struggle from paycheck to paycheck, leaving the retirement question to echo in perpetuity. How do we starve-proof our future? Let’s find out how freelance writers can prepare for retirement. Pens up.
Farewell, retirement plan
Our 9-5, suit-and-tie friends may envy our flexible hours, PJ mornings, and lunch breaks, but we can return the favor by tearing up as we swallow the bitter truth pill: health insurance, corporate benefits, and retirement plans. I can’t think of a better moment to put on some Kansas and theatrically exhale, “All we are is dust in the wind.” After we wrap up our existential dread hour, it’s time to put on the big girl/boy pants and do something about our future.
You are not alone
Retirement planning is one of the biggest challenges a freelance writer can face. The good news (well, “good”) is that self-employed people and small business owners face the same obstacles, no matter the nature of their business – be it travel agencies, auto repair shops, hair salons, dinners, you name it. So, how do we approach our retirement plan empire? We do what a small business owner would do.
Hi, SEP-IRA
So, SEP-IRA (Simplified Employee Pension); A friendlier IRA for all the lone rangers out there. This type of retirement plan is thought to be the best available option for self-employed people who plan to retire as such. Freelance writers appreciate and choose SEP-IRA due to its flexibility; the contribution limit is significantly higher than with the IRA plan. You can contribute up to 25% of your income (or $58,000). You get to save, no matter how much money you make. It’s your call. You don’t pay income tax; it will be taxed once you withdraw your funds at retirement. We just need to point out the downside: you can’t pay contribution taxes now and receive them tax-free as you retire. Other options include:
- IRA
- Solo 401(k)
- SIMPLE IRA
Talking to your trusted IRA provider about options is a great way to start figuring out what best suits your current and future needs.
Be an octopus
Becoming a digital octopus is exactly how freelance writers can prepare for retirement. What does it mean? Branch out, you multi-talent. There are myriad ways to earn money for a safer future.
Blog empire
Yes, blogs. They’re not dead yet. In fact, they are salsa-dancing alive. And people who write high-quality material get paid. And we mean – not a care in the world – paid. You already have all the tools; exploring new, exciting waters and writing about something you care about will help you stay productive as a digital nomad. Finding a topic that appeals to a broader audience is critical. It’s safe to say that blogging about Russian dolls won’t bring you fame. But finance, humor, and how-to blogs might.
E-book digital nook
Holding a hardcover is something holy for any bibliophile. And it will remain so until Earth’s last day. Still, we’re not here to romanticize doom; we’re here to prepare for our retirement. Hence, digital books. Printing is expensive, and finding a publisher is a nightmare. Writing an e-book on freelance writing is easy. You are the “research.” You already have all the information. You just need to put it on paper and be immaculate.
Be confident
Yes, there might be hundreds of books on the topic in our digital universe, so? It just needs a brand-new perspective—a gripping one. Find something exciting to write about. What makes you tick? Use it to earn money for your lazy future days. The time is now. Moving to Las Vegas after retirement will come later. There are many, many benefits of settling here – starting with the tax-friendly state of Nevada. Benefits. Just putting it out there.
Part 2: a digital course
Digital products and digital courses go hand in hand. Why is it important? Credibility. If you don’t have an audience, how will it work? If you self-publish on Amazon and THEN set up your course shop, you’re sending a direct message to your audience: I know what I’m doing. It’s not going to be easy; you will need a riveting sales page and website self-promotion. But, you’re a writer, remember? Persuasion is your gift. Webinars are great for bringing in revenue.
Branching out
Octopus, emphasis on the octopus. No matter how much we enjoy writing, it becomes tiresome. How do we stay healthy as freelance writers? We experiment with close-to-home digital branches. Brainstorm is afoot. Let’s think.
- YouTube
- Podcasts
- Facebook Advertising
Do you have any other hidden talents? Get into web development and graphic design. Dividend stocks for passive income. Take a course. This is an era of self-taught geniuses; why can’t you be one of them? Every single piece of information is available to us 24/7. Use it, exploit it. Learn new things. It’s the only way to future-proof your value and ride the retirement wave.
Start today
Freelance writing is pure beauty riddled with uncertainty. It’s a mixed bag: candy and barbwire. To illustrate how freelance writers can prepare for retirement is to self-question—a lot. And, you already know the answer. The only plausible solution to our little retirement issue is work. Learn. Get up. Don’t give up. Don’t panic. Save money. Work. Godspeed, fellow writers.
