Tuesday, March 31, 2015

50 Shades of an Investment Plan


50 Shades of an Investment Plan?

I think we could all agree that 50 Shades of Grey is one of the hottest movies of the year so far!
But just how hot is this movie?
This movie has grossed more than $528 million worldwide.
Yes that is one hot movie!
50 Shades of Grey is the largest international opening movie of 2015. 
It is also the highest R-rated opening international movie ever.
So just how hot does this deal get for the young entrepreneur Christian Grey himself?
Well even after claims that actor Jamie Dornan was going to quit after this first movie, because his wife was uncomfortable with some of the explicit sex scenes.
Jamie Dornan has just recently signed a deal that will take him from being paid approximately $250,000 for this movie to a reportedly hot $7 million deal to star in the sequels.
Is this a good investment decision for Jamie Dornan and his wife?
This may seem like nothing compared to what some of the highest paid actors in Hollywood earn per movie with Johnny Depp earning $50 million for every movie or Leonardo DiCaprio who now earns $77 million for his movies.
With all that money to be earned in the movie industry is there an ideal script for managing finances and retirement when it comes to actors?
Even with the large amounts of money that can be paid to an actor per movie does this guarantee them a carefree retirement or are there drawbacks?
For actors it can often be a case of feast or famine which means they have to learn how to make the most of the money that they earn.
This can make it difficult for actors to manage their finances.  Due to the fact that work is not consistent and even though they may be paid very well for a role they may have to live off that for a long while before they get their next role.
One of the hardest things for an actor is when they finally do get that big break that can make them rich overnight they can also go broke overnight just as easily, because due to human nature when that big break that they have been waiting on come so does overspending and not enough saving.
All too often when actors are making large sums of money there are bad financial decisions being made at the same time which will hurt them in the long-term?  Bad decisions like investing too much into tax deferred accounts and then having to withdraw the money out early or simply spending too much and saving too little for the times when they are not working.

4 tips towards the perfect script for Financial Success;
      1.  Put aside at least 24 months of living expenses in cash.
      2.  Make sure you work with a Financial Advisor who will tie in the importance of Estate     Planning and Tax Advice into your overall plan.
      3.  Don’t just invest into tax deferred accounts; make sure you invest in taxable accounts that can be used without incurring penalties.  It is important that investments are maximized in working times and assets available when not working.
      4.  Anyone devoting their career to acting needs to know the importance of having a Financial Advisor as part of their team just like having your agent and manager.