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I Stop Celebrities from Blowing Their Money

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Re: I Stop Celebrities from Blowing Their Money

#21

Post by vostok »

hkmurakami wrote: post #20
myroon5 wrote: post #6

"I charge a 5 percent commission rate, which is pretty standard" 5 percent of what?

At 5% AUM, you might as well put it in cash, when you consider risk adjustmentd and post tax investment returns. But skimming this article, it's not just investment returns really. I guess these people really are liable to blow all their money on stuff off left to their own devices.

I think 5% of AUM would be a fee based advisor or a wrap account.

If it's 5% commission then it's 5% of each transaction.

Re: I Stop Celebrities from Blowing Their Money

#22

Post by acchow »

holman wrote: post #17

If any of this is at all interesting to you, I'd recommend checking out the very excellent ESPN documentary "Broke": http://www.espn.com/30for30/film?page=broke ESPN's 30 for 30 docs are really great, even if you're not particularly huge into sports. Broke is one of my favorites (after a "The Two Escobars"). It goes into a lot of detail about how ill-prepared many professional athletes are for the lifestyle, how they…

Can you give some examples of "did the right thing and still ended up bankrupt."?

Re: I Stop Celebrities from Blowing Their Money

#24

Post by raverbashing »

zer00eyz wrote: post #3

A long time ago, in a job (thankfully) far far away I had to have a fair bit of interaction with famous people. Some of them are crazy - one of the artists (now dead) demanded "more goat heads" on his project. This was an actual client request. I still do take pride in getting one of the most difficult clients in the roster to admit we did a "good job". Famous people can be weird, and some do really exist in their ow…

Their recklessness is usually what makes them "good" (in the sense of public appealing) artists. There are exceptions, surely.

It makes sense that they behave this way, but it is certainly annoying for those who have to deal directly with this.

Re: I Stop Celebrities from Blowing Their Money

#25

Post by wrich5011 »

nixgeek wrote: post #8
myroon5 wrote: post #6

"I charge a 5 percent commission rate, which is pretty standard" 5 percent of what?

I presume it’s their income, or assets under management. Pretty sweet deal if so compared to the 2-and-20 a lot of investment managers make.

2 and 20 is what premier hedge funds make (many charge less nowadays). 1% is a standard financial advisor fee.

Re: I Stop Celebrities from Blowing Their Money

#26

Post by simonbarker87 »

wrich5011 wrote: post #23

FIVE PERCENT FEES? After inflation that basically brings your ROI from holding risky equities down to savings account rates. She gets paid better than the world’s most successful hedge funds to be a glorified baby sitter to grownups? I picked the wrong career.

I imagine that’s the fee her firm takes, assuming she has some employees, a snazzy office etc there will be overheads out of that - but yeah, accountants do well.

Re: I Stop Celebrities from Blowing Their Money

#27

Post by loso »

holman wrote: post #17

If any of this is at all interesting to you, I'd recommend checking out the very excellent ESPN documentary "Broke": http://www.espn.com/30for30/film?page=broke ESPN's 30 for 30 docs are really great, even if you're not particularly huge into sports. Broke is one of my favorites (after a "The Two Escobars"). It goes into a lot of detail about how ill-prepared many professional athletes are for the lifestyle, how they…

This is my favorite ESPN documentary. It was so good. I met Bernie Kosar among a bunch of other athletes and celebrities during Super Bowl XXXI. I was working security. I had to walk him around for a few hours. He was a real nice guy. Real accommodating to all the fan request. Even the crazy ones. So when I saw him on the special I could see how he could be taken advantage of. He seemed like a guy who was too eager to please.

Re: I Stop Celebrities from Blowing Their Money

#28

Post by rahimnathwani »

wrich5011 wrote: post #23

FIVE PERCENT FEES? After inflation that basically brings your ROI from holding risky equities down to savings account rates. She gets paid better than the world’s most successful hedge funds to be a glorified baby sitter to grownups? I picked the wrong career.

Probably 5% of income, not assets.

But even if it's of assets, she's not just managing money. A hedge fund manager isn't going to help choose your drapes, at least not within the management fee.

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