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Scripting Your Financial Future


To safeguard your financial security in an oftentimes unpredictable entertainment industry, it’s crucial to develop a strong financial plan and be aware of the potential money hurdles linked to intermittent work and income.

Working in entertainment is often not a standard nine-to-five, and your work and pay schedules may go from project to project. While working in showbiz is exciting, it can come with its own unique financial challenges. It’s more important than ever to stay up to date on the best ways to build a long-lasting financial plan to protect your financial security for today and the future. Let’s focus on a few money hurdles you may encounter when your work and income is intermittent.

Saving for Retirement

Picking a retirement plan that best works for your professional journey can take you many routes. Traditional individual retirement accounts (IRAs)and Roth IRAs are the most common and easiest ways for those with varied incomes to save as there are no special filing requirements.

A traditional IRA is an account to which you can contribute pre-tax dollars. Your contributions may be tax deductible depending on your situation, qualifying you for immediate benefits. There are no income restrictions to set it up and your money grows tax deferred. IMPORTANT: When you do withdraw, you’ll have to pay regular income tax. You’re also required to start taking distributions once you turn 73 years old.

With a Roth IRA, you invest money that has already been taxed. However, if you meet the requirements which include having a modified adjusted gross income within set IRS limits and specific income thresholds based on your tax filing status, all earnings are tax-free when you or your beneficiaries withdraw. You can set up automatic monthly transfers from your bank account. Plus, certain withdrawals can escape the early distribution penalty. If you don’t qualify for a tax deduction with a traditional IRA, it might be worth looking into a Roth.

Stay Covered with Insurance and Safety Nets

Without the cushion of insurance offered by a traditional employer, you’ll need to shop around for your own health, life, and disability insurance. This means shopping around for policies that best suit your needs and budget. It’s crucial to be adequately covered to protect against unforeseen medical expenses, loss of income due to illness or injury, and to provide financial security for any dependents you may have.

Emergency Fund

Prioritize building an emergency fund as part of your financial planning strategy. Set aside at least three to six months of living expenses, including monthly mortgage or rent payments. This fund is your safety net for any unexpected costs, enabling you to weather a financial storm without derailing your long-range plans. Consider keeping this fund in a high-yield savings account, as it can help your savings to grow. First Entertainment offers several money market accounts and term certificates that pay higher interest without locking up your money for long periods of time.

Dealing with taxes

Since income tax is may not automatically be taken out of your pay, you must keep track of, save, and pay income taxes on your own. This involves setting aside a portion of each paycheck from every job or project to cover your taxes. Familiarize yourself with the specific tax requirements for those with varied incomes to make sure that you are saving and paying the correct amounts.

Planning for your financial future can feel daunting with a fluctuating income, but we’re here to address your concerns. Contact our office today to explore your savings and retirement options.

Michelle Lee, Financial Advisor


Insurance services offered through Media Benefits Insurance Services CA Lic#0H99393, a DBA for Media Benefits Corp., which is a wholly-owned subsidiary of First Entertainment Credit Union. This content is for informational purposes only and not for the purpose of providing professional, financial, medical, or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem.