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If
your only long-range plan is what set of songs they’ll be
playing after the next love ballad…you just might be a DJ!
So true, but as our profession grows and becomes more respected
as an entertainment industry, and as we find ourselves making
decent money doing what we love, are we honestly thinking
about our “long-range” long-range plan? How many of us plan
to retire to the white sandy beaches of a tropical island,
with one arm around a turntable and the other around a tanned
significant other? Or do we admit we’ll still be pressing
on, setting up our gear in retirement homes in the year
2040, playing oldies by Kid Rock and Jay-Z? For mobile DJs
considering a plan for financial responsibility, it’s really
best to see a financial planner, since the intricacies of
investing and capitalizing on market rates often require
a different part of the brain than the one we use to entertain
guests at a 40th-year class reunion. We talked to a couple
dozen DJs about their plans for the future, and found that
even if you’ve been DJing since you were wearing Luvs diapers
and plan to continue until you’re wearing Depends, there
are options that should be considered.
Nicky Burke, 56,
Sound Decision DJs,
Millersville, Md.
DJ
status: Part-timre since 1987.
Projected retirement age: Age 65. Would like to DJ
forever, but is fearful that the aging process will force
a slowdown. Is “56 years young,” but his equipment feels
heavier as time passes.
Financial plan in place: 401(k) from his full-time
job; SEP 401(k) from DJ business, and rollover IRA from
previous job.
Retirement plan: Would like to remain in his current
area and maybe even teach intelligent lighting.
Retirement plan: Not sure yet.
Ryan Burger, 29,
BC Productions,
Des Moines, Iowa
DJ status: Full-time for 16 years.
Projected retirement age: May slow down a bit eventually,
but will never retire, “I’d go nuts.” May sell out the business
at around age 50 and pursue other interests.
Financial plan in place: Working on Roth IRAs that
are invested in the stock market.
Retirement plan: Possibly move down to Florida—specifically
Sanibel Island on the Gulf Coast. Of course, they will need
to have high-speed Internet access down there (“I’m sure
by then computers and the Internet will be way beyond our
dreams!”).
Retirement plan: Will probably sell out to his kids
in about 20 years, after they have learned the business
extensively. An old guy like him will probably be able to
keep up with the kids, too, since he knows plenty of DJs
in their 50s and 60s who can still rock a school dance better
than he can.
Andrew Byrd, 30,
MusicMaster DJs,
Atlanta, Ga.
DJ status: Full-time since 1984.
Projected retirement age: 45.
Financial plan in place: Mostly mutual funds, Roth
IRAs, SEP, and property investments.
Retirement plan: Has several ideas, however, no firm
plans yet.
Retirement plan: May cash out or remain owner; if
he did the latter, would not be involved in the day-to-day
operations.
Cap
Capello, 58,
Musical Host Services,
Rexford, N.Y.
DJ
status: Part-time from 1978-1984; full-time from 1984
to present
Projected retirement age: He’s 58-years old, so,
although his “attitude might seem unconcerned or flippant,
there is a feeling of being between a rock and a hard place.”
Prays to God to sustain him in this business until he can
call it a day on his terms. Feels that his retirement will
be mandated as opposed to being taken. The mandate will
come from either the audience not wanting an “old fart,”
his inability to haul equipment due to the onset of age-related
infirmities, declining health that will make reliability
impossible, or not being able to remember in which folder
he put “Old Time Rock & Roll” and “Celebration.”
Financial plan in place: Has been investing in mutual
funds, IRAs and SEPs, not so much for retirement, but to
allow the eventual financial freedom to decline gigs he’d
rather not play.
Retirement plan: To create a business in computer
technology applications and possibly offer seminars about
the DJ business. When the inevitable happens, he plans to
try and put all this accumulated wealth of knowledge into
a book, manual, or CD-ROM both as instructional and historical.
Retirement plan: There will be nothing to cash out.
When the time comes, “I just won’t accept gigs.”
Lisa
Capitanelli, 38,
I’m A Girl DJ Entertainment,
Los Angeles, Calif.
DJ
status: Full-time for 10 years.
Projected retirement age: 50-years old.
Financial plan in place: Owns two rental properties,
IRA and mutual funds.
Retirement plan: To relax and enjoy life.
Retirement plan: Not sure yet.
John
Dolan, 63,
Ambassadors DJ Service,
NY-CT-NJ
DJ
status: At 63-years old, has been in the entertainment
business for 45 years, having performed at nearly 8,000
parties during his career. Son Matty D now runs the business
full-time, but “Papa John” is still part-time, although
mostly marketing and sales, but will go out on the big party
that requires multiple entertainers.
Projected retirement age: No retirement age in mind.
Still enjoys the live performance end of the business, and
as long as he can physically do it, he will. Nowadays, the
toughest part of the business is lifting equipment, which
he still does if he must, but relies on roadies whenever
possible.
Financial plan in place: Have 401(k), stocks, mutual
funds, and gets a percentage of the business from his son.
Retirement plan: If his son had not taken over the
reins of the business, probably would have cashed out the
business long ago.
Paul Chamberlin 36,
The Music Machine,
South Bend, Ind.
DJ
status: 18 years total; full-time for the past six years.
Projected retirement age: Around 55. Is 36 now, giving him
“another 20 years to get it right.”
Financial plan in place: 401(k) from previous job,
IRA, and a privately managed stock account called a PMSA
(“If a mutual fund is a ‘bus,’ then the PMSA is a limo.”).
Retirement plan: Travel with his wife, since the
children will be out of college by then.
Retirement plan: Sell out to an up-and-coming player.
That’s how he bought into this in the first place—the original
owner sold the company to Chamberlin, worked as an employee
for two years, and then retired to Vegas.
Scotty
O’Brien, 28,
Sunshine Entertainment,
St. Louis, Mo.
DJ
status: DJing for 14 years. Currently “very full-time.”
Projected retirement age: Is 29-years old now, probably
will retire at about 50, although it depends on the finances.
Financial plan in place: Getting ready to start a
plan, now that he’s recently married. Will probably look
into a plan with Northwest Mutual, although his first goal
is to completely pay off his house.
Retirement plan: Would love to own a bed and breakfast
somewhere in the mountains, although “I will always stay
involved in music.”
Retirement plan: Too early to know what will happen.
Would love to have someone take the business over and pay
them to run it. “Only then will I be able to enjoy the fruits
of my missing many Saturday nights of partying.”
Geoff Carlisle, 36,
JAMM Entertainment Services,
Birmingham, Ala.
DJ
status: Owner for 18 years, full-time since 1990.
Projected retirement age: Age 65. Financial plan
in place: Has set up a Roth IRA account so that he can contribute
the maximum $2,000 tax-free allowed by the IRS. Can also
add to it during the busy seasons so that it will total
at least $3,500 of contributions a year. Also contributes
to his retirement by paying himself a set base salary every
two weeks.
Retirement plan: Financial plan will allow him to
retire at 65 with an income of $75,000 a year, not including
the worth of his company and its assets, which, of course,
increase in value each year as the company grows.
Retirement plan: At the appropriate time, he’ll sell,
franchise out or continue using the DJ company as supplemental
income. Will also have the opportunity to work other part-time
jobs, as he does now teaching a college course.
Tom French, 44,
Fatman Entertainment,
Vacaville, Calif.
DJ
status: DJing for 16 years, owner since 1996. In addition
to DJing full-time, holds a full-time engineering position.
Projected retirement age: Is 44-years old, plans
to retire at age 60. Loves the DJing profession, and wants
to go until he physically can’t do it anymore.
Financial plan in place: Currently has a 401(k) plan
and stock options from his engineering firm.
Retirement plan: When he retires, would like to move
to a nice retirement community, preferably on a golf course,
buy a motor home and tour the country.
Retirement plan: If neither one of his children wants
to carry on the business, will probably sell the business
to the highest bidder.
Ken Heath, 38,
DJ Ken’s Mobile Music,
Boise, Idaho
DJ
status: Started in 1978, and last year went full-time.
Projected retirement age: Hasn’t given it much thought,
but young enough to still enjoy life. Would love to clone
himself, and then be able to DJ forever.
Financial plan in place: None, so “I’d better get
on it!”
Retirement plan: Always liked San Diego. Would be
nice to live near the beach.
Retirement plan: Hopes his children step in at some
point and take over what he’s built.
Al
Hajducko, 48,
Sound People,
Hollywood, Fla.
DJ
status: Been DJing for about two years, part-time.
Projected retirement age: Not planning any retirement.
Expects to simply wear out. Financial plan in place: 401(k)
at his day job.
Retirement plan: See above.
Retirement plan: See above.
Joe Martin, 52,
All Star DJs,
Wichita Falls, Tex.
DJ
status: DJing full-time since 1970. Calls himself “the
original boogieman since 1970.” Spinning so long, tells
people “Noah was at my first gig.”
Projected retirement age: Has been planning his retirement
for 25 years, and would like to step down to semi-retirement
in the near future. This would mean decreasing his workload
from 180 nights per year to 35.
Financial plan in place: Is a firm believer in saving
and investing for the future. Has funded his IRA for 25
years, and has invested heavily in the stock market for
the last 17 years.
Retirement plan: Working 35 nights per year, coupled
with investments in the stock market, would enable him to
live comfortably. At age 59-½, will tap his IRA, which he
has solely funded since 1976. At age 63, will start drawing
Social Security at the reduced level.
Retirement plan: When the time comes, will either
attempt to sell a working business, or “have one heck of
a home stereo.”
Matthew
Earl Melcher,
The Digital DJ,
Manchester, N.H.
DJ
status: DJing professionally since 1997. Hopes to do
it for another 30 years.
Projected retirement age: Would like to retire at
age 65, but it depends on the status of his DJ business
at that point.
Financial plan in place: Currently a 401(k) through
day job, and a pension plan as well.
Financial plan in place: When he retires, would like
to move to either California or the Philippines, where his
wife is from. It depends on the world situation when he
gets to that point.
Retirement plan: Would like to train his daughters
in the art of DJ entertainment and eventually pass the business
onto them. If not, will try to maintain an interest with
a limited partnership.
Dean Michael, 33,
Ultimate Entertainment,
Dickeyville, Wash.
DJ
status: Has been entertaining/DJing for 17 years. Part-time
DJ, although his DJing income has in the past surpassed
his regular earnings. Works for a professional sound and
lighting company during the week.
Projected retirement age: Retirement will hopefully
come between 60-65 years old. Not in such a hurry, enjoys
what he does.
Financial plan in place: Is currently vested in a
retirement plan with his full-time employer. In the future,
will look more at property investment opportunities, especially
if the economy and stock market stay sluggish.
Retirement plan: No plans to move at this time. He
and his wife both have family in the area that they enjoy
being around. If there’s a need to explore after retirement,
he and his wife will hop in the car and start driving. If
he’s too old for that, “there’s always a tour bus going
to Branson, Missouri.”
Retirement plan: With a part-time business like this
(service-oriented), believes he can only get the value of
his equipment and future booked gigs. “If you feel your
company name is worth something, you may get cash for that,
but minimal.” By the time he’s slowing down, hopefully his
son will choose to pick up the reins. Can’t foresee hanging
on to the company, booking the gigs and hiring someone else
to do the gig.
Mika
Nguyen, 29,
Freedom Production,
Seattle, Wash.
DJ
status: DJing for eight years, all of them part-time.
Projected retirement age: Would like to retire from
day job at age 50 or sooner.
Financial plan in place: Both 401(k) and stocks.
Retirement plan: Continue to do what he does best,
DJ.
Retirement plan: To open up a Christian dance club
in Seattle.
Tim
Raley, 32,
KRE8SHUNS Mobile DJ Service,
Rome, Ga.
DJ status: DJing part-time since 1988.
Projected retirement age: Never! Believes if you
love something and enjoy it, why stop? Wife constantly asks
him, “Do you think you are going to be DJing forever?” Responds
with “Yes!” Has many DJ friends that are getting up there
in years, and still sees them on occasions out performing
company parties and class reunions. Younger crowds he used
to DJ for get older.
Financial plan in place: 401(k) with full-time job.
Retirement plan: None.
Retirement plan: Would love to keep on keeping on.
If he gets tired, simply won’t take bookings for a month
or so.
Gary
Orr,
Lone Star Entertainment,
Ft. Worth, Tex.
DJ
status:DJ
for over 30 years. Is currently full-time.
Projected retirement age: Plans on DJing as long
as he’s physically able to move the equipment and mentally
able to relate to the client and their needs. Would like
to start slowing down in five or six years. With his wife
doing freelance consulting work, together they’ll have a
decent retirement.
Financial plan in place: Has been investing heavily
in mutual funds for several years. Wife Linda has a 401(k)
at her full-time job, and both have individual IRAs.
Retirement plan: Purchased a 15-acre farm located
between Lubbock and Amarillo, Tex. Although not exactly
an ideal retirement community, he and Linda both love the
mountains in New Mexico and Colorado and the farm is about
four hours away from both. Current home in Fort Worth and
the farm in Olton will both be paid off in five years.
Retirement plan: Not planning on it. Will continue
to DJ. Travels quite a bit now, performing wedding receptions
and corporate parties in almost every major city in Texas.
Will continue to do this even after they make the move to
the farm. When the traveling gets old or he’s not able to
keep up with it physically, he’ll start scaling back and
take more low-paying jobs in the local market area.
Kevin
Porter, 30,
Elite Entertainment,
Rock Hill, S.C.
DJ
status: Full-time DJ.
Projected retirement age: Plans to run his company
until he’s 65-years old.
Retirement plan: Believes he will never completely
retire from the company he started, but would like to see
the company grow until it’s busting at the seams. Only then
would he retire, but oversee the operation and still collect
money while out playing golf (would not disclose handicap),
taking vacations, and travel.
Retirement plan: When it’s time for him to stop performing,
plans to just sit back and watch his staff do everything
like clockwork while he continues making a profit.
Professor Jam,
Spinnin’ Crazy Productions,
Tampa, Fla.
DJ
status: Started DJing in 1973 as an unpaid assistant
at a roller rink. Today, DJs full-time. “It seems like I’ve
already been DJing forever.”
Projected retirement age: Age 60 sounds good to him.
Retirement, for him, is a tough one, “because retirement
seems to be a blessing after working the most mundane jobs.”
Financial plan in place: 401(k), money market account
and stocks.
Retirement plan: No need to move, already located
in one of America’s retirement capitals.
Retirement plan: Cash-out value on equipment would
most likely be pennies on the dollar. The most valuable
part of his gear is his extensive music selection.
Stanley
Samuel, 34,
Infinity Entertainment,
Dubuque, Iowa
DJ
status: Been mobile for 10 years; full-time for four
years.
Projected retirement age: Hasn’t thought of retiring.
Is hoping to go back to India and retire there. Would like
to pass the business on to his kids.
Financial plan in place: Regrets, along with the
rest of us, not buying stock in Microsoft 10 years ago.
Is planning on finding some retirement options in the near
future.
Retirement plan: Maybe become a fisherman.
Retirement plan: Cashing out has occurred to him,
but until his kids decide one way or another as far as taking
over, is going to work as hard as he can to make that first
million.
Matt
Booth, 30,
Elite Entertainment,
Dubuque, Iowa
DJ
status: Nearly full-time, started at age 16.
Projected retirement age: At this point, he doesn’t
see himself retiring, although that view may change when
he has a wife, and children. Would like to be able to retire
in 15 years.
Financial plan in place: Likes the simple IRAs rather
than 401(k), because the simple IRAs have reduced fees and
are more cost-efficient for his small company. He also has
his real estate license, which gives him the chance to invest
in property. The best investment for him, however, is continuing
education. “I’ll have my masters degree in communication
in May, and I attend seminars and conventions regularly.
It’s important to keep learning, and great investments are
speaking, acting, and voice training classes.”
Retirement plan: As much as he enjoys sitting on
the beach, he doesn’t see his retirement being that laid-back.
Believes there will always be a market for professional
DJs, and can see himself providing entertainment at retirement
homes or beach parties in the future.
Retirement plan: If something happened to him now,
the business would pass on to relatives. Hopefully, someday
this opportunity “to provide so much happiness to people”
will be passed on to a daughter or son of his own.
Adam
Weitz, 30,
A Sharp Production,
Huntingdon, Penn.
DJ
status: DJing for 17 years; full-time occupation for
four years.
Projected retirement age: 65.
Financial plan in place: SEP IRAs.
Retirement plan: Based on savings only. Even though
he loves his business, and anticipates that, God-willing,
his corporate business will make him a mini-fortune, he
has his grandfather’s mentality—save, save, save.
Retirement plan: Thinks entertainers are like the
shooting stars of life. Wants to bring on new talent for
the future, and once he’s past his prime, the business “is
a nest egg that you can add to your own savings.”
Carl Williams, 31,
DJ Connoiseur Enterprises,
Orlando, Fla.
DJ
status: Full-time DJ for 13 years.
Projected retirement age: Is 31-years old now. Would
like to retire at 40.
Financial plan in place: A mutual fund set up as
his 401(k).
Retirement plan: When he retires, plans to focus
100-percent of his energy in marketing on the Internet (web
marketing and web design). Wants to educate people about
the components needed to design an effective website or
traditional advertisement.
Retirement plan: Won’t cash out the business, but
may retire earlier than 40 if he can really get a trustworthy
and talented team to run the business. Is willing to train
someone who has the passion for music and entertaining.
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