The Future Deserves a Place in Your Financial Plan
Most traditional jobs come with a roadmap: a 401(k), employer match, health insurance, and a predictable retirement age. But if you’re an entertainer, creative, or freelancer—you’re the boss. And while that gives you freedom, it also puts the responsibility squarely on your shoulders.
Unfortunately, many artists don’t think about retirement until it’s too late. With irregular income, fluctuating expenses, and the high cost of living in major entertainment hubs like Los Angeles or New York, it’s easy to focus on the now and forget about the later.
At Artists Business Management Group Inc. (ABMG Inc.), we help clients build long-term wealth while navigating the unique income patterns and financial challenges of the entertainment industry. Whether you’re 25 or 55, there’s no better time than now to start planning your financial future.
1. Why Retirement Planning Is Different for Entertainers
Unlike salaried employees, most entertainers don’t have an HR department offering a 401(k) or pension plan. You’re often self-employed or working through an S-Corp or LLC, which means:
- You must create your own retirement structure
- There’s no automatic withholding—you must be disciplined
- Tax efficiency is critical—because you might earn $300k one year and $60k the next
ABMG Insight: We design retirement strategies tailored for creatives, ensuring you take advantage of every tax benefit and income opportunity—without compromising your lifestyle or artistic goals.
2. SEP IRA: The Simple, Flexible Option for Freelancers
The Simplified Employee Pension IRA (SEP IRA) is one of the most popular retirement plans for self-employed individuals, especially entertainers who operate as sole proprietors or S-Corp owners.
SEP IRA Benefits:
- Contribute up to 25% of your net earnings, maxing out at $69,000 for 2025
- Contributions are fully tax-deductible, reducing your taxable income
- No annual funding requirement—great for years with variable income
- Easy to set up and low cost to maintain
Real-World Use Case: A touring musician contributing $50,000 to a SEP IRA saved over $18,000 in federal and state taxes with ABMG’s retirement/tax planning combo.
3. Solo 401(k): A Powerful Tool for High Earners with No Employees
If you’re a one-person business (or you and your spouse), a Solo 401(k) allows you to contribute as both the employer and employee, creating a powerful wealth-building opportunity.
Solo 401(k) Limits for 2025:
- Employee deferral: Up to $23,000 (or $30,500 if over age 50)
- Employer contribution: Up to 25% of compensation
- Total max: $69,000 (or $76,500 with catch-up)
Why It’s Great for Entertainers:
- Ability to contribute more than a SEP IRA at lower income levels
- Optional Roth component—pay taxes now, grow tax-free later
- Loan feature: You can borrow up to $50,000 from your plan if needed
ABMG Strategy: We help you decide between a Solo 401(k) and SEP IRA based on your income, business structure, and retirement goals—and handle all setup, funding, and recordkeeping.
4. Defined Benefit Plans: Advanced Strategy for High-Income Creatives
If you’re a consistently high earner—think six or seven figures annually—a Defined Benefit Plan (similar to a pension) can offer enormous tax savings and retirement funding opportunities.
Key Features:
- Potential to contribute $100,000–$300,000+ annually, depending on age/income
- Tax-deferred growth and major tax write-offs
- Ideal for professionals in peak earning years with minimal employees
Case Study: A film producer with $500,000 in S-Corp income used a Defined Benefit Plan to contribute $240,000 pretax, reducing his tax liability by nearly $100,000.
Important: These plans are complex and require actuarial certification and IRS filings. ABMG partners with retirement administrators and CPAs to execute this seamlessly for clients.
5. Roth IRAs & Backdoor Roths: Tax-Free Growth for the Long Haul
While Roth IRAs have income limits, entertainers with fluctuating earnings can often qualify in lower-income years—or use a Backdoor Roth strategy when income is too high.
Why Roths Matter:
- Contributions are not tax-deductible, but qualified withdrawals are tax-free
- Great for younger entertainers or those expecting higher future tax rates
- Can supplement SEP or Solo 401(k) savings with tax diversification
ABMG Tip: We help clients time Roth conversions and backdoor contributions strategically—especially in years with lower income or higher deductions.
6. Budgeting for Retirement When Income Is Inconsistent
The biggest challenge creatives face in saving for retirement isn’t the strategy—it’s timing contributions when income isn’t steady.
That’s why ABMG builds:
- Flexible contribution plans that adjust based on income volatility
- Percentage-based systems (e.g., save 10% of every deposit) instead of fixed amounts
- Annual reviews to catch up during high-earning years or pause during dry spells
Client Insight: “ABMG helped me set up an automated sweep—10% of every payment went into retirement. I didn’t even notice, and now I’ve got over $80K saved.”
7. Retirement Isn’t Just About Savings—It’s About Security
Saving is only part of the picture. A complete plan includes:
- Investment strategy based on your timeline and risk tolerance
- Estate planning to protect intellectual property, royalties, and future income
- Disability and life insurance to safeguard against income loss
- Cash flow planning in retirement (especially for creators with lifetime royalties)
ABMG works with trusted financial advisors, estate attorneys, and insurance partners to ensure you’re protected from every angle—without losing creative freedom.
Why Creatives Trust ABMG Inc. with Their Future
We understand entertainers because we’ve spent three decades serving them. From the newly self-employed to the world-touring artist, ABMG Inc. provides:
- Retirement strategies that flex with your income
- Tax-efficient plans to keep more of what you earn
- Business structuring to support long-term wealth
- Education and coaching so you feel empowered—not overwhelmed
“I never thought I could retire. I thought I’d just keep gigging until I couldn’t. Now I know I have a plan—and it’s thanks to ABMG.”
— Comedian & Podcaster, Los Angeles
Is Your Future Funded?
If you’ve ever asked:
- Am I saving enough to retire someday?
- How can I avoid overpaying in taxes?
- What happens to my income when I stop performing?
- Can I pass royalties or creative assets to my family?
It’s time to have a real conversation.
