Having household names with multimillion-dollar paychecks as clients may seem like an advisor’s dream but advising celebrities can be frustratingly hard work, Investor’s Business Daily writes.
For starters it’s difficult for advisors to do their job if they’re dealing with their clients’ handlers, such as agents or managers, according to the publication. In addition, celebrities often have unreasonable expectations of their advisors, Investor’s Business Daily writes.
Meanwhile, the advisor has the added pressure of ensuring that large paychecks can sustain a long financial future — for a professional football player, whose average career is around three and a half years, that means planning for the next half-century or more, certified financial planner Michael Conway tells the publication.
To compound the difficulty of convincing clients to be prudent with the large sums they’re earning, advisors sometimes have to work hard just to get their point across, according to Investor’s Business Daily.
Professional athletes, for example, often don’t really understand financial markets and require extra education, as do their family members, according to Conway. He says he knew early in his career that he wanted top athletes among his clients and now works with several of them. But he tells Investor’s Business Daily that he doesn’t advertise it. In any case, strict confidentiality rules mean advisors can’t brag about their star clients, the publication writes.
For all of the above reasons, advisors who get a roster of star clients typically get choosy about who they work with, according to Investor’s Business Daily. They prefer to work with celebrities who demonstrate interest in investing and managing their wealth and are ready to develop direct relationships rather than go through intermediaries, according to the paper.