Get Real. Individuals who acquire wealth quickly or without the proper financial foundation often operate with an unrealistic frame of reference. Celebrities should learn that every dollar they receive doesn’t actually belong to them. There are legitimate financial obligations attached to the money they earn. Also, realistic expectations should be set for yourself, family and friends, as to what level of financial help you can provide versus frivolous goodwill spending.
Pay Now or Pay Later. When you make money in America, you have partners whether you like it or not. Your partners are the local, state and federal governments, and as with all partners they expect to be paid. We can look at examples to the contrary ranging from Redd Foxx to Wesley Snipes and see how that worked for them. You either can pay your taxes now or pay much more later.
Put Your Vision in Writing and Make it Plain. Although the idea of our mortality is our least favorite subject, for celebrities avoiding this reality can be financially devastating. Proper estate planning is very important. One recent example is the estate of former NFL star Steve McNair. In April 2010, www.probatelawyerblog.com reported that the lawyers for his widow had to file a petition with the Tennessee probate court asking for funds to pay $3.72 million for state and federal estate taxes. If McNair had done the proper estate planning, those taxes could’ve been avoided.
Consult the Three Wise Men. Anyone seeking to maintain a solid financial status and build wealth for the future, should recognize that success is not an accident. Everyone, especially celebrities, should regularly embrace the counsel of “The Three Wise Men”i.e., an accountant, a financial planner and a tax adviser. While some of these professionals may have expertise that cross over into more than one area, it is important that celebrities have all three bases covered thoroughly.
Celebrities work hard to develop their talents in the pursuit of greatness; they carry burdens that many of them never asked for — nor knew existed. However, financially fit celebrities can be beacons of light and provide the influence and economic means to help African American communities prosper and become more self-sufficient.
–leonard c.a. mcreynolds IV, licensed financial professional, [email protected]
