As a financial advisor by day and a DJ by night, I understand the hustle of being a self-employed creator. Whether you’re filming viral TikToks, streaming on Twitch, or running a YouTube channel, the thrill of building an online brand comes with its own set of financial challenges. Just like dropping the right track at the perfect moment, managing your money takes strategy, time, and expertise. The right financial advisor can work with you to help you grow your earnings, save for the future, and build long-term wealth, all while you continue doing what you love.
Tax Planning, Retirement, and Investing for the Online Creator Economy
The online creator economy has exploded in recent years. Platforms like TikTok, YouTube, Twitch, and even OnlyFans, have given rise to a new wave of self-employed content creators. But with this newfound fame and income, come questions about tax planning, saving for retirement, and investing wisely for the future.
Why Financial Advisors Can Be Essential for Self-Employed Content Creators
In an economy where 50 million amateur creators and 2 million professional creators are striving to turn their passion into profit, sound financial advice is invaluable. And while it may make sense for someone in the online space to turn to TikTok for financial guidance, be wary that some “finfluencers” may not have the necessary certifications to be doling advice out online.
Having a trusted advisor on your side could help you avoid future pitfalls and strive to meet your financial goals. Here are some of the ways the wealth advisors at Marshall Financial aim to help self-employed creators:
1. Tax Planning for Content Creators: Staying Ahead of the Game
Navigating taxes can be one of the most challenging aspects of being self-employed. From income streams across different platforms to deducting business expenses (equipment, studio space, and travel to name a few), understanding what you owe—and what you can keep—is crucial to effective tax planning.
- Maximizing deductions: Many content creators miss out on tax-saving opportunities because they aren’t aware of the specific deductions available to them. Helping you track business expenses and working together with your CPA are ways your advisor can help you be prepared come tax time.
- Quarterly tax planning: Many creators are surprised by how much they owe come tax season. Setting aside income for quarterly tax payments based on your advisor’s tax projection can help avoid any unexpected tax bills.
2. Planning for Financial Independence: Because Viral Videos Don’t Last Forever
While creating content might feel like a “young person’s game,” the reality is that we all need to plan for the day when we stop working. Many content creators don’t have access to traditional retirement savings options like a 401(k) through an employer, which makes retirement planning even more important.
- Opening an IRA or Solo 401(k): Whether it’s a Traditional IRA, Roth IRA, or a Solo 401(k), an advisor can help you pick the right retirement account based on your income, business structure, and long-term goals.
- Saving for the future: As a self-employed creator, your income can fluctuate. Setting up automated contributions based on your earnings can help build a comfortable nest egg for the future, no matter what your income looks like from month to month. You can work with your advisor to balance savings for your future goals and your monthly cash flow.
3. Investing in Yourself: Managing the Day-to-Day
Successful content creators may experience a variety of different planning challenges like enrolling in health insurance, structuring their business, or managing revenue streams. How you manage those decisions and risks will affect your path to long-term financial freedom.
- Choosing a business structure: Content creators need to decide whether to operate as a sole proprietor, LLC, corporation, or other business structure. Each structure has different tax implications and liability protections that a financial advisor can help you understand.
- Relying on multiple revenue streams: Content creators often rely on a mix of ad revenue, sponsorships, merchandise, affiliate marketing, and fan donations. Proper diversification helps protect against income loss from any one source. A financial advisor can help you think outside the box and develop strategies that can provide more stable revenue over time.
Let’s Help You Achieve Financial Freedom as a Content Creator
Being a content creator is exciting, but it’s also financially complex. Whether you’re struggling with tax issues, want to set aside money for the future, or are looking for a partner to assist you in making decisions, a financial advisor can help guide you in the right direction. Like mixing beats as a DJ, managing your finances is all about finding the perfect balance—and together, we’ll help you get there.
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