Entertainers can suddenly come into large sums of money and at an early age. Many delegate total responsibility to sometimes unscrupulous “advisors” who mismanage their money, defraud them or make poor investment choices.
It is important to do a thorough due diligence before engaging any professional. It is best to select solid, regulated institutions with tested professionals.
Ignoring your investments with little knowledge about what
you are getting into, makes you vulnerable, and is a recipe for financial disaster.
You owe it to yourself to understand the basic tenets of investing. Don’t look for supernormal returns; if something sounds too good to be true, it probably is. You are responsible for your own financial security.
To reduce concentration risk, build a diversified portfolio of cash, stocks, bonds, property, business interests, etc. Often the mistake is only realised when all the money is gone!
Where the average full-time employee has an earning trajectory of say 30 to 40 years, most entertainers career span is far shorter. Sir Paul McCartney, King Sunny Ade, superstars blessed with extreme career longevity, are the exception, not the rule.
Build long term assets so that when you no longer wish to work or can no longer work, your money will work for you.
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