Struggling to Get By on a Musician’s Salary? Use a Robo-Advisor to Invest and Save

6. Try a robo-advisor

If you are in music school or have recently graduated, you have chosen an exciting career—but you also have picked one where it is notoriously difficult to succeed.

Music is one of the most competitive fields out there.  Opportunities are restricted, and only those who are extremely talented and well-connected will bring in a high income.

Add to that the high cost of music school, and you may find yourself struggling just to pay your rent each month.

When you can barely afford to keep up with your monthly bills, how will you ever manage to invest so you can retire? There is no easy answer, but one tool which may help you to succeed is a robo-advisor.

Robo-Advisors Are Rising in Popularity

A robo-advisor is an online investment service you can use to plan and manage your portfolio.  While robo-advisors are geared in part toward lower and middle-income consumers who cannot afford the high fees of managed investment services, they are becoming increasingly popular with high-net-worth individuals as well.

This is significant, because a lot of lower-net-worth consumers question whether robo-advisors really deliver results—or whether they are just a gimmick aimed at those who cannot afford to pay the professional fees of traditional investment brokers.

The fact that even high-net-worth consumers are turning to robo-advisors tells you that low fees are not the only reason to go with an online investment service. The returns compete easily with those associated with traditionally managed portfolios.

How Robo-Advisors Can Help Struggling Musicians

As a musician, you may not earn a very high income. While there are high-paying opportunities out there (some musicians do earn in excess of $100,000 a year), they are hard to come by.

You may very well find yourself juggling multiple jobs. You may sometimes have a music gig and other times be searching for one. Some jobs may only last for a few months. Your day job may not pay you very well either.

In this situation, you may have just enough money to pay your bills and set a little aside. That is hardly enough to consider investing with a traditional financial advisor. Traditional advisors set high minimums for investments and charge high fees for their services.

With a robo-advisor on the other hand, you can:

• Get started with investing just a few hundred dollars.
• Save money on fees.
• Receive personalized advice without making an expensive appointment.
• Take care of your retirement accounts online with a few simple clicks.
• Enjoy hands-off investment earnings. You can monitor your accounts anytime and get as involved as you want—but you also can step back and let your investments take care of themselves while you focus on your music career.

How can you get started?  The first step is to look at a robo-advisor comparison chart.  This makes it easy to see features like:

• The minimum initial deposit required
• Whether or not tax loss harvesting is offered
• Whether human advisors are available
• Which types of retirement accounts you can set up
• Fees you can expect

That way you can find the robo-advisor which is going to fit your needs best. Be sure to read robo-advisor reviews before you make your decision. Making a living as a musician is tough, but that does not mean you cannot set aside a nest egg for retirement.

With a robo-advisor on your side, you can save toward your future!