Legal Expert Says ‘Future-Proofing’ Is Key When A Career May Be Short-lived

With a host of sporting heroes and musicians dominating this year’s Sunday Times Rich List, legal and wealth planning experts at Irwin Mitchell Private Wealth say that planning ahead is essential to safeguarding the wealth of people whose career may not last a lifetime.

The list, published this weekend, revealed that footballer Wayne Rooney, 30, was the wealthiest young sportsmen in Britain with an £82million fortune, a rise of £10m from last year.

Joining him on the ‘50 young rich list', which focuses on those aged 30 and under who are already multimillionaires, were Harry Potter actor Daniel Radcliffe, £74m, Twilight star Robert Pattinson, £65m, and global superstar Adele, £85m.Golf hero Rory McIlroy, actress Emma Watson, One Direction members Harry Styles, Niall Horan, Louis Tomlinson and Liam Payne and tennis stars Andy and Jamie Murray all featured in the top 20 on the list.

Partner and financial expert at Irwin Mitchell Private Wealth, Nick Rucker said achieving such levels of wealth by the age of 30 was an impressive feat but warned that it was vital to “future-proof” savings to ensure the money lasts when a career is over.

He said: “While we hope that successful young people go on to have lasting success and long careers, the reality is that in industries like sport and entertainment people often retire at a relatively young age.

“When you are unsure about what the future holds in terms of your earnings it is not only vital to have a good plan in place to ensure your wealth lasts but to implement it correctly, especially where there could be major tax consequences in doing so, and keep reviewing  and updating it as things change. Even modestly wealthy people need a proper wealth plan but it is absolutely crucial if your major earning years are concentrated during a short period of your life.

“Building a detailed cash flow analysis and being honest with clients about whether their lifestyle is going to be sustainable is a very enlightening experience. While it may seem attractive to spend money on fast cars and  champagne lifestyle, if you are sensible about it, that wealth can last a lifetime so taking good advice is a must.”