THESE SIMPLE TIPS FROM THIS CELEBRITY FINANCIAL ADVISOR CAN ALSO HELP REGULAR PEOPLE SORT OUT THEIR FUTURE FINANCES
Earning millions seems like a dream come true for some. But for the celebrities, professional athletes and entertainers who earn those paychecks, managing their wealth to last becomes a more serious matter.
After all, these high-income years won’t last forever, especially in the case of athletes. This is where the services of someone like Jonathan Gold, London and Capital‘s executive director come in handy. But while Gold is focused on managing the finances of high-profile clients, some of his advice can still benefit regular people who may not have as much money and assets on the line.
With most athlete’s careers lasting for just around 10 to 15 years except in notable cases, Gold believes in choosing a low-risk portfolio of stocks and bonds. This way his clients won’t ‘whittle away’ their salaries too fast. The advice is also useful for other people whose incomes may not be a fixed amount.
According to Gold, bonds should be able to balance the risky part of one’s portfolio, which is equity. This, he says, is the ‘bedrock’ of pulling in a more readily-knowable stream of earnings. He also reminds though that this income shouldn’t be spent right away but reinvested back instead.
CHOOSING THE RIGHT COMPANIES
In connection to his previous advice of going low risk, Gold discourages his clients from putting money on ‘flashy companies’. Instead, he suggests that they look into those that provide a ‘level of familiarity’ and have a proven track record. A company that will sustain its success and will be around for a long time is also a success for the investors.
The financial information website MarketWatch suggests a few ways on how to determine which companies are worth investing to. First, they advise people to look into a corporation’s top line, which is the revenue, and bottom line, which is the difference between the company’s expenses and revenue. A company in good financial health will have growing revenues and profit margins.
CREATE A GAME PLAN
Another thing Gold works with his clients about is a plan. While he says he doesn’t discourage them from making splurges on expensive purchases, he helps his clients make a breakdown of their current annual earnings and how much they’ll need to keep safe to ensure that they can afford their future.
Being aware of the many pro athletes who have been a victim of financial troubles, his goal is that nobody else ends up going down a similar road.