{"id":36,"date":"2022-07-20T04:45:42","date_gmt":"2022-07-20T04:45:42","guid":{"rendered":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/?post_type=chapter&p=36"},"modified":"2022-08-01T06:42:24","modified_gmt":"2022-08-01T06:42:24","slug":"6-saving","status":"publish","type":"chapter","link":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/chapter\/6-saving\/","title":{"raw":"Saving","rendered":"Saving"},"content":{"raw":"For many professionals starting in the arts industry, income is project-based and does not funnel through one employer; artists, entrepreneurs, and other small business owners and freelancers are responsible for meeting their own needs today and<\/em> planning ahead to retirement.\u00a0 Without the cushion of security from an employer-sponsored retirement account or a pension, self-employed professionals bear the responsibility for ensuring that their own retirement needs are met\u2014savvy investing maneuvers can help combat the rising cost of standard-of-life through one\u2019s career, but the most powerful tools are time and compounding interest.\r\n\r\n \r\n\r\nNote: general principles and best practices are introduced here for conceptual purposes; no portion of this book is intended as investment advice. For personal guidance, consult a certified financial professional.\r\n\r\n \r\n\r\nWhen considering vehicles for storing or growing assets, the investment\u2019s time horizon should be identified: short-term assets <\/strong>may need to be liquidated quickly or immediately to cover known or unplanned emergency expenses\u2014in other words, money that might be needed within the next year or couple years.\u00a0 Mid-range<\/strong> assets<\/strong> refer to investment vehicles that do not require immediate access for liquidation\u2014in personal finance, this usually means saving ahead for a new car in 5 to ten years.\u00a0 For a company, mid-range investments might be an effective place to store assets ear-marked for a new equipment purchase in several years at the end of current equipment\u2019s life.\u00a0 Long-term assets<\/strong> serve goals like retirement, for which quick access to cash is a lower priority than capturing more powerful interest rates.\r\n\r\n \r\n\r\nBy identifying an investment time horizon, the investor can seek an investment vehicle suited for the needs of the individual; as such, each range should be reflected upon and tailored to the specific needs of the investment, but the ranges below serve as a generic benchmark.\r\n\r\n \r\n\r\nShort-term assets: needed within the next year or couple years.\r\n\r\nMid-range assets: needed for goals 5 to ten years from now.\r\n\r\nLong-term assets: held for goals ten or more years from now.","rendered":"

For many professionals starting in the arts industry, income is project-based and does not funnel through one employer; artists, entrepreneurs, and other small business owners and freelancers are responsible for meeting their own needs today and<\/em> planning ahead to retirement.\u00a0 Without the cushion of security from an employer-sponsored retirement account or a pension, self-employed professionals bear the responsibility for ensuring that their own retirement needs are met\u2014savvy investing maneuvers can help combat the rising cost of standard-of-life through one\u2019s career, but the most powerful tools are time and compounding interest.<\/p>\n

 <\/p>\n

Note: general principles and best practices are introduced here for conceptual purposes; no portion of this book is intended as investment advice. For personal guidance, consult a certified financial professional.<\/p>\n

 <\/p>\n

When considering vehicles for storing or growing assets, the investment\u2019s time horizon should be identified: short-term assets <\/strong>may need to be liquidated quickly or immediately to cover known or unplanned emergency expenses\u2014in other words, money that might be needed within the next year or couple years.\u00a0 Mid-range<\/strong> assets<\/strong> refer to investment vehicles that do not require immediate access for liquidation\u2014in personal finance, this usually means saving ahead for a new car in 5 to ten years.\u00a0 For a company, mid-range investments might be an effective place to store assets ear-marked for a new equipment purchase in several years at the end of current equipment\u2019s life.\u00a0 Long-term assets<\/strong> serve goals like retirement, for which quick access to cash is a lower priority than capturing more powerful interest rates.<\/p>\n

 <\/p>\n

By identifying an investment time horizon, the investor can seek an investment vehicle suited for the needs of the individual; as such, each range should be reflected upon and tailored to the specific needs of the investment, but the ranges below serve as a generic benchmark.<\/p>\n

 <\/p>\n

Short-term assets: needed within the next year or couple years.<\/p>\n

Mid-range assets: needed for goals 5 to ten years from now.<\/p>\n

Long-term assets: held for goals ten or more years from now.<\/p>\n","protected":false},"author":12,"menu_order":3,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[48],"contributor":[],"license":[],"class_list":["post-36","chapter","type-chapter","status-publish","hentry","chapter-type-standard"],"part":22,"_links":{"self":[{"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/chapters\/36","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/wp\/v2\/users\/12"}],"version-history":[{"count":3,"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/chapters\/36\/revisions"}],"predecessor-version":[{"id":67,"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/chapters\/36\/revisions\/67"}],"part":[{"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/parts\/22"}],"metadata":[{"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/chapters\/36\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/wp\/v2\/media?parent=36"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/pressbooks\/v2\/chapter-type?post=36"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/wp\/v2\/contributor?post=36"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/openpub.libraries.rutgers.edu\/artsentrepreneurship\/wp-json\/wp\/v2\/license?post=36"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}