Who amongst us doesn’t like the glitz and glamour of a celebrity’s life? Having to adorn a designer suit to the big-shot events of the place, or vacationing in a cruise in some off beat island of Greece? Behind all that glam, lies smart investment decisions that no one usually talks about. What sustains a celebrity life is not just the amount of money they earn from their film or performative ventures, but also good expenditure traits that are well-cultivated throughout their short lived or long lived terms of stardom and success.
In this article, we would talk about the 7 different ways in which celebrities make, spend and mostly invest their money:
1. Real Estate:
Thanks to the ever increasing population and rapidly decreasing real estate plots, it is always a great decision for anyone with money to spare, to invest in real estate. Because, it counts as an asset. However, what adds to the benefits of investing in real estate, for celebrities, is how real estate properties’ value and liquidity increases because of the celebrity association they tend to have. Also, in most cases, the media performs free advertising for real estate properties, hence adding to their value and popularity, which goes a long way in increasing their valuation.
Most smart celebrities buy properties in upmarket regions, add a personal touch, live in them, and then sell them to other richer folks who would pay any amount to live in a former celebrity’s home.
2. Stock investments:
Smart investments include investments in stock, jewelry, mutual funds or hedge funds. While such funds are always subject to market risks, they tend to have space for more and more profit generation, which if performed soundly, can result well. Generous results are promised rewards of the stock market, historically, but only if you’re making sound choices, and are always preparing yourself for uncertainties that might knock you down.
The average annualized return of 10 percent is a sound reason for you to be investing in the stock market. Whether you take the help of a financial planner, who helps you buy low and sell high, as that’s what stock market is known for, or do it yourself, you should always remember to not risk it too much, and sell it when things go smooth.
3. Tax-free Bonds:
Numerous public sector undertakings have come up with tax-free bonds over the years, and this attracts celebrities like no other, because of the incentives they come with. The credit risk is negligible, the tax returns are assured, over a long term span of 15-20 years, and it all works well with celebrities and smart investors. Also, they guarantee a fixed annual income from the returns. So, if you’re fine with investing for a long-term period, as the maturity time is higher, you’re in for some good rewards!
4. Investing in Start-ups:
It is all about looking for and seeking the perfect company that deserves your funding. The smartest ways to invest in a start-up can first begin by using other smart celebrities investing in them: that can act as a screener, of sorts. Also, indulge in the value investing philosophy, and compare the utility and practicality of such a start-up, and invest less than what the company is worth, so that you always can fall back upon the revenues generated and a greater promise of it hitting off!
These start-ups become profit generating full-fledged businesses and they have spelled huge rewards for the celebrity investors who saw the great promise behind the ideas at the start.
The latest investment fad has been investments in cryptocurrency, short-term and long-term. The beginning of cryptocurrency was Bitcoin in 2009, and no one could have predicted the profit revolution it brought about. It became the best cryptocurrency to invest in, and early investments were taking home huge revenue rewards. In 2017, cryptocurrency’s market exhibited a growth of 4000 percent, which is unprecedented and huge!
In less than 10 years, there are 1500 varied cryptocurrencies that you might want to invest in, and platforms like profit revolution can help you sort and find the best ones to invest in, while constantly keeping you in loop of an investment ecosystem that makes you a smart and successful investor. The present cryptocurrencies that are doing well, include Ripple, Ethereum, and Litecoin, which have entered the market off soon, but seem promising in the long run, for interested investors, celebrity or otherwise.
6. Investing in a business of their own:
Most celebrities, whether of Hollywood or Bollywood, tend to start a business – a clothing line, a jewelry store, or a line of accessories. Their association with the brand lends the brand popularity, achieves free media publicity, and often results in more success than usual other businesses of the same type. Many celebrities also invest in production houses of their own, notable for churning out millions of profits. Most famous celebrities like the Kardashians or even Katrina Kaif, have an apparel line of their own, which are inspired by their own sense of style and lifestyle, and tend to be popular among their fan following.
7. Investment in the Hospitality Sector:
Tourism and hospitality tends to be one of the most profitable sectors at present, no matter which part of the globe you’re in. It is one market that withstands market dips almost always. And investing in this sector is rewarding whether we’re looking at short-term gains, or long-term ownership gains. If you’re investing in this sector, you’re also to receive numerous tax benefits, besides the numerous incentives and perks that accompany you being an investor, on holidays, and breaks that you well deserve.
No doubt more and more celebrities are investing in this profitable sector, which is also great for a personal getaway. And, a celebrity association adds to the branding value of the chain of hotels, that results in more stock value, and even higher valuation, meaning more and more profits for them.
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