Maintain a sizable cash position.
Normally, it would be considered unusual (and perhaps unwise) for a person in his mid-20s to maintain a large cash allocation inside an investment portfolio. Celebrities, however, often need to remain nimble and liquid. An allocation of 30%-40% in cash may help to stabilize an uneven cash flow that often results from the sporadic nature in which many athletes and entertainers are paid.

Contribute to a retirement plan.
Managing the extensive tax burden is often one of the greatest financial challenges highly paid celebrities face. One simple way to help lower income taxes is to defer as much salary as possible through an investment in a qualified retirement plan. Of course, having a retirement savings plan is important for anyone, famous or not.

Build up a balanced investment portfolio.
Every successful celebrity with income in the multimillions needs an investment policy. Depending on the client's financial objectives, a portfolio that is invested in both municipal securities and growth-oriented taxable investments-a balanced portfolio-often works well. A well-balanced, actively managed portfolio helps alleviate the tax burden with less risk than an all growth portfolio, and can help the celebrity's wealth last well beyond the lucrative earning years.

4. Offer sound advice even before the wealth accumulates-become a trusted partner
Unlike the typical wealth management client, those in the sports and entertainment businesses often begin accumulating significant wealth at a very young age-and most of them have limited financial experience. As a trusted financial partner, take responsibility to educate your clients on financial matters early in their careers. Advise them on how to establish good spending, saving and borrowing habits-before their peak earning years begin. Help them get their first credit card. If you establish a trusting relationship early in a budding star's career, she is more likely to remember your firm when she needs professional wealth management services later on. If a celebrity credits your firm with the launch of his career because you were willing to take a chance on him, you have probably won his loyalty for life.

5. Offer complete confidentiality to shield private matters from the public eye
While celebrities typically enjoy the limelight, it is crucial to protect them from unwanted publicity when it comes to their financial matters. Confidentiality must be a top priority for any financial institution that serves this client base. Tight security measures also contribute to building trust and long-term loyalty with privacy sensitive celebrities.

6. Offer total access and availability to accommodate the celebrity's unpredictable lifestyle
Finally, make it easy to do business with your firm. Recognize the heavy demands of a celebrity's career and the unpredictable hours they keep. Service must be accessible at all times, whether via cell phone, e-mail, or in person. If your doors are always open, clients are more likely to walk through them

Conclusion
A star today is not necessarily a star tomorrow. Indeed, all A star today is not necessarily a star tomorrow. Indeed, all celebrities should have a financial plan to help set a course for managing and building wealth over a lifetime. Often, a professional financial advisor that understands the challenges faced by today's celebrities serves as a helpful resource throughout a star's career. Financial advisors who focus solely on celebrities can help these clients wisely manage daily cash flow and expenses, adequately save and invest for a comfortable retirement and appropriately protect their income earning potential. With intelligent planning that begins early on, celebrities can enjoy both a comfortable lifestyle throughout their working years, along with a secure financial future upon retirement.

Thomas Carroll is managing director of the Sports and Entertainment Specialty Group of SunTrust Bank. He and his team have more than 20 years of experience working with well-known athletes and entertainers during their careers and in retirement. More information is available at www.suntrust.com/entertainment.