Entertainers: Concerned About How Your Agent Is Handling Your Money?

For various reasons, entertainers often use agents or managers to handle their finances. It usually works out well, but not all managers do the right thing: Singers Rihanna and Elton John and actor Ben Stiller all were victims of financial mismanagement committed by people they trusted to manage their cash and investments. Sadly, they were not the only entertainers to experience this.

The Consequences

The consequences of this type of experience are tangible and emotional — and preventable.

For entertainers who leave the task of managing their money and investments to others, it is a good time to review how their cash and investments are being handled and put in any needed safeguards. Keep in mind that the objective of good money management is having a plan in place that allows you to achieve your current and future financial goals.  

What can you do?

There are many things you can do to maximize your money and minimize the risks inherent in having others handle your finances, including:

• Checking whether your manager has the required level of expertise.

• Performing background and reference checks when hiring.

• Having controls in place to monitor the activity in your accounts.

• Putting dual authentication systems in place.

• Knowing if your manager outsources investment-related duties to others. You need to keep track of who those entities are and understand your manager's relationship to the entities.

• Getting periodic reports that compare the period-over-period balances in each of your managed accounts.

• Understanding the tax consequences of everything you do, whether that is purchasing real estate, entering into a licensing agreement or supporting a charitable organization.

Give us a call and we'll be happy to have a confidential discussion with you about ways you can protect your assets now and in the future.