When it comes to finances, athletes and entertainers, all tend to have one thing in common. At some point in their lives, they will have a rapid accumulation of wealth, and the potential need to rely on that wealth for the remainder of their life. Whether you just signed a new record deal or your first professional contract responsible management of your newfound wealth is critical to your long term happiness.
It starts with self control
You’ve heard it a million times over — the key to making your wealth last is self-control. And it’s painfully true. To begin my process, we’ll work with your accountant to determine a set amount of money for the lifestyle you want to live. At times it may conflict with what you’d like, but that’s a process we’ll work through. The end goal is to have enough to live a fantastic life in the present, and to also have enough set aside to continue living that fantastic life when you’re no longer working.
A penny saved is a penny earned
After your budget is established, and we’re working with a world class bank, it’s time to start putting money away for the future. When thinking about how to invest your money, I use three points along a timeline:
- What investments can be used for income in a few years
- What investments can be used for the middle term, 15-30 years from now
- What investments can be used for income 30-50 years from now or for future generations
Determining what to invest in is not a simple process. It’s not just buying a mutual fund and hoping it works out. I take into consideration your values, your risk tolerance, and the companies you strongly believe will succeed in the future.
Unique investment opportunities
Having significant wealth provides opportunities that others may not have, both in access to the things you can buy and do, and also to investment options. Throughout your life, you may be asked to invest in various startup businesses, including technology, restaurants and hotels, apparel lines or beauty products. When these serious opportunities arise, we pull together a team of experts to vet and review them, and help determine which ones make the most fiscal sense, as well as offer the most opportunity for promoting your brand. Emotion can often get the best of us when asked to invest in a company; it can be challenging to turn down a friend or relative. By deferring decisions to a team comprised of your agent or business manager, accountant, attorney, myself and my internal team of specialists, you remove the emotion and we help you come to a logical conclusion that’s in your best interests, as well as those closest to you.
A significant benefit of being wealthy is the ability to give back to the causes and issues you care about. While giving a large cash gift can definitely make an impact, we’ll work with you and the charities you support to structure these gifts in unique ways. This helps make a positive impact on the charity while providing you with the most beneficial tax impacts possible. There are a number of unique ways to do this. If there are no charities you feel connected to, but you still want to give back, we’ll help you work with the appropriate individuals to start your own, and appropriately fund it to make sure your personal finances and those of the charity are properly structured.
Providing for the future
Your unique position provides the chance to live a dream lifestyle, and also to help support your family for generations to come. By working with RBC Trust, we can help ensure that you are secure now, and that your legacy and hard work pays off for generations to come.