The problem with star power is its
lack of staying power. Celebrities can be successful one day and
unsuccessful the next. That unpredictability creates a challenge for
the financial advisors and wealth planners who are charged with helping
famous people achieve their financial goals.
It takes highly
trained financial professionals with special expertise to help
celebrities overcome the unique financial challenges they face. While
there are thousands of private wealth practices that potentially have
the capability to serve the financial needs of wealthy celebrities, a
differentiated service offering that is solely focused on the sports
and entertainment industry can make all the difference. Here are six
elements that we have found to be critical when building a niche wealth
management practice that serves the diverse and complex financial needs
of celebrities.
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It's
true, there can be a certain excitement associated with hiring your
first employee. The idea of having someone to help shoulder the
burden-whether it's in a personal or business capacity-who is dedicated
to your priorities and goals, and relies on you for guidance and
direction can be appealing. It is important, however, that expectations
not get in the way of the formalities that ensure the employer-employee
relationship is compliant with state and federal regulations.
Ultra-affluent individuals should pay particular attention to
protecting themselves as they are often perceived as ideal targets for
lawsuits, and will look to their advisors for guidance on this issue. 
Historians
generally refer to the early decades of the 20th century as the Golden
Age of Philanthropy. It was the era of the great industrialist—men like
Carnegie, Mellon, Rockefeller and Ford—who amassed great fortunes, then
established the grand legacy of American philanthropy through the
formation of the private foundation as their chosen vehicle for
expressing their charitable intent. Their desire to make a difference
and the wealth that spawned their philanthropic mission created a
legacy that perpetuates to this day: Our nation remains by far the most
generous nation on Earth. 
One
of the great challenges faced by high-net-worth families is raising
motivated, thoughtful, and productive children. Within three
generations most families go from rags to riches to rags again. It may
be counterintuitive, but many of the families that overcome this
challenge and preserve their wealth for multiple generations do so by
giving some of it away. Planned philanthropy and a robust private
foundation are critical tools used by high-net-worth families who
successfully transfer both their values and their sense of purpose to
the next generation. 
In
April, Mark Carter attended the opening of a group drawing show at the
Limn Gallery in San Francisco. Some of the works caught his eye, as did
some pieces by French artist David Gista, who does portraits of torsos
using a blowtorch on paper. “It’s very captivating because the
smokiness creates a subtle diffusion where the cloudlike humans look to
be of ether rather than of flesh,” says Carter.
Captive insurance companies are a creative way to manage the unique risks and liabilities of ultra-wealthy individuals._thumb.gif)
