Top Financial Mistakes to Avoid as a Celebrity
There are many things to consider when it comes to being a celebrity. One of the most important is how much money you have in the bank account. Likely, most people do not know about stars in debt. Celebrity financial advisors, have helped her clients avoid some major mistakes that they might not have known about otherwise. Below are common mistakes to avoid if you’re an A-list celebrity.
Lack of Financial Planning
Personages are constantly in the public eye, and as a result, they’re often offered opportunities that can bring them significant financial windfalls. However, it is essential to be cautious about which deals you accept because there will probably always be someone who wants to do business with you for all the wrong reasons.
If you don’t have a plan, you could easily get taken advantage of. Even if the offer sounds good at first glance, it’s still a brilliant idea to have someone experienced look over any deals before they are finalized.
Buying Too Much Real Estate
Celebrities who own too many homes lose their tax benefits and overpay for real estate. For example, if a star owns five houses in LA worth $500k each, they would have to pay an extra $100k on capital gains when selling the house rather than just paying taxes on one home of up to $300k.
Not Paying Attention To Your Investments
Stars are just like everyone else. They need to look at their investment portfolios every once in a while and see if they’re keeping up with the times or not. A celebrity who doesn’t monitor what is happening could find themselves investing in something that has no value anymore, such as stocks, bonds, real estate, and other instruments. It is essential to be aware of how your investments are doing, not only for the sake of wealth-building but also because you could end up losing money if you do nothing about it.
Being Disorganized With Your Tax Returns
Celebrities are often disorganized in filing taxes. The media may sensationalize stories that celebrities avoid paying their tax, but these situations are rare in reality. Many celebs have been caught up with the IRS for misfiling or late payments because of being disorganized with their financial records.
Poorly Managing Your Finances
Public figures are often under a microscope, and everyone knows what they’re doing with their money. It might be tempting to splurge, but you can end up in a lot of debt if you aren’t financially responsible. The first thing celebrities should avoid is poorly managing personal finances. If celebs don’t know how much money they have or where it’s going, they may not plan for the future correctly.
A 401(k) rollover is a tax-free transfer of funds from your existing 401(k) account to another retirement plan. In this case, it’s your gold IRA. You can choose to roll over your 401(k) into the gold IRA of a custodian who specializes in precious metals.