Secrets on How the Celebrities Investing Money !

Celebrities are usually very rich, but most have cultivated expenditure traits that over-exceed their savings, and hence the need to invest carefully, the money they make from music, sports and films. Stardom is at best transient and will not last forever, and both the A-listers and lower rated stars need to be very smart with their money to safeguard their futures. Investments of excess savings are their best options for future expenses apart from lucrative endorsement deals, and they have to consider similar opportunities like the ordinary folks working to invest their funds. So, where and how and in which instruments do they invest their money?

REAL ESTATE INVESTING

You would think that flipping houses are for the low class, but stars are taking huge steps and flipping high-value homes. It is the most popular investment option with stars, and they do it in upmarket areas where they give it a personal touch and sell them to the fray who want a former celebrity’s home. Most notably, Taylor Swift has over $50 million invested in a single New York block investing in duplexes and apartments, multiple homes in Beverly Hills. Kanye and Kim West have been flipping houses for as long as they have been together, sometimes not having lived in them.

INVESTMENT IN STOCKS AND FINANCIAL DERIVATIVES

According to a Beverly Hills financial planner, Tammy Trenta, celebs are making stocks investments, mutual funds, bonds, hedge funds, and jewelry. Like all her non-celeb clients, she advises them to diversify their investment portfolio, which ensures that they get the most from their portfolios. However, not all investments end up as promised. Back in the 90s, Sylvester Stallone and John Cusack invested in Lipper Convertibles, a private fund. Sylvester put in more than $2 million and made at least a $1 million, and Cusack got more.

ENTREPRENEURSHIP AND INVESTMENT STARTUP

Gwen Stefani has a clothing and accessories line from her L.A.M.B. fashion house, Jessica Simpson is making wigs, Carlos Santana is making women shoes, Mel Gibson has a chain of strip clubs called Sugar Tits, and more celebs are turning to entrepreneurship to stretch their millions. Their celebrity status helps them get customers in the door, and they are turning their few millions into mountains of cash. They not only endorse brands, but they put up their own companies complete with a tax ID. The environmental conscious celebs like Angela Jolie and Leonardo Di Caprio are making investments in green energy.