Yea that's kind of key. 5% of total income for financial advising seems a bit steep, BUT if they're a high risk of spending it all on hookers and blackjack then maybe it's best for them?

I'd rather see 5% go towards financial education in schools, but hey, then this person would be out of a job.

Financial education in schools hardly applies to this situation. As the article states, much of this is helping out people that are extremely distracted by their careers and are on the road constantly. Even with the motivation, I bet the time and energy for artists to think about finances would be more than a 5% hit to their career/output etc.

It's the same reason startups are happy to pay fairly high cloud prices so as not to have to deal with staffing network engineers and stuff like the old days.

Gross income.

I interviewed a potential business manager that was recommended by a few celebrity-actor types a few years back.

The idea of someone taking financial responsibility off your plate full-stop was definitely intriguing, but I did the math about what that would cost vs. just a full time personal assistant and I couldn't justify it.

He did immediately recommend a new bank for me which I had never heard about. Was fantastic advice, been happy with them since.

which bank was that?

Signature

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.

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

Hedge fund managers and financial advisors meet with their LPs/clients from time to time. They don’t “get all of [their] clients’ mail — bills, fan mail, business-related mail, everything” nor “oversee payments for their mortgages, phone, rent, utilities, and all the little things that keep their lives going and the lights on.”

What is "2-and-20" ?

AUM

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.

I think financial managers usually charge a percentage of assets managed.

Depends, but that typically refers to AUM

Source: Close friend does the same exact thing as person in article...works with NFL, NBA, etc players