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What Factors Should You Consider When Investing Your Money in Your Comic?

gamalhennessy Community • Sep 25, 2020

Tony Stark money isn’t the same as Peter Parker money. Different people have access to different levels and sources of personal finances. Each circumstance has unique advantages, disadvantages, and factors to think about in relation to your comic. As you review these self-financing options, keeping mind that these are broad overviews of complex financial instruments and they shouldn’t be used without understanding the risks and rewards. (See What are the Risks and Rewards of Financing Your Own Comic?)

1. Savings
a. Description: This is the money you already have in the bank. It could come from money you save over time, tax refunds, or selling Vibranium on the black market.
i. Advantages:
1. It is the easiest source of personal investment to access.
2. There is no direct financial penalty if you don’t put the money back into your account.
ii. Disadvantage: Money you take out of your savings account stops earning interest when you withdraw it, but the loss of current levels of interest isn’t a significant barrier for many publishers.
iii. Consideration: While it might be tempting to invest your entire savings account into your book, it makes more sense to set aside a contingency fund to deal with unforeseen personal or business costs. This will help increase your risk tolerance for the money that you do invest (See What Are the Finacial Realities of Publishing Comics?).

2. 401K
a. Description: [url= . Many 401(k) plans allow you to borrow against the plan before retirement and many people use it to fund personal businesses.
i. Advantage: Many plans allow you to borrow up to 50% of your vested account balance up to a maximum of $50,000.
ii. Disadvantage: If you lose your day job, you might have to pay back any money withdrawn from the 401(k) within 60 days of the end of the job. Since paying back a loan at the same time you become unemployed is not an ideal situation, you should consider the security of your job before you tap into this source of money.
iii. Consideration: Understand both the penalties and fees for withdrawal for your particular plan and discuss the potential implications with your financial advisor and/or significant other.

3. IRA
a. Description: An IRA (either a traditional or a Roth IRA) are long term savings plans that allow you to purchase investments and offers significant tax breaks over the life of the account.
i. Advantage: You can withdraw money from an IRA any time you want, as long as you replace it within 60 days. This is not a loan, so you don't pay interest.
ii. Disadvantage: If you don’t pay the money back, you can be hit with a substantial early withdrawal fee and taxes on the money you didn’t put back into the account.
iii. Consideration: This could be a good source of short-term cash, as long as you can avoid the penalties.

4. Personal Property Sales
a. Description: Using online tools like eBay or offline methods like garage sales to trade in the things you own and no longer need for cash.
i. Advantages:
1. Selling your stuff gives you cash without tapping into your bank account
2. It could be a way to remove clutter from your living space or garage
ii. Disadvantages:
1. The amount you make from selling your stuff isn’t fixed and can fluctuate over time.
2. You might have to invest a considerable amount of time selling that you could be using to make your comic.
iii. Consideration: Be aware of the potential tax implications depending on what you sell and how you sell it

5. Second Job / Freelance Work
a. Description: Acquiring employment outside of your regular job to fund your comic.
i. Advantage: Depending on what job you have, your side job could allow you to acquire skills that will be useful in publishing your comic
ii. Disadvantages: Your time and energy are finite. The time and effort you take working for someone else is time that you can’t spend on your book.

No matter what type of personal investment you use to publish your comic, try to leverage the relationship between time and money to your benefit. You can publish very quickly if you are willing to drop more money into the project. You can publish the same book at a lower personal cost if you are willing to take your time. You shouldn’t wait forever to publish. We only have so much time to pursue our dreams. But finding a balance between time and money will help maximize your personal investment.

Of course, the other alternative is finding outside sources of funding. We'll take a look at those next week.

Have fun with your comic

Owl 1 month ago

The first line is perfect. You made me smile.


gamalhennessy admin 1 month ago

It's an analogy that comic creators understand intuitively. ;-)