On cash management;

              Hollywood has been called a never-never
land, somewhat out of touch
with reality. Such an image, however,
does not square with the financial
activities of actor Wayne Rogers.
Known to the public for his role as
Trapper John in the TV smash
M*A*S*H, Rogers is a partner in
various investment ventures, along
with fellow actors Peter Falk, James
Caan, and Jack Webb. Moreover, the
42-year-old star is either the
managing or active partner in such
deals, which range from ranching to
condominiums to office buildings.
Recognized as an astute investor,
Rogers has himself addressed the
California Society of CPAs on
investment criteria and tax planning.
Here he offers TEMPO readers some
insights into the world of financial
planning in our nation's dream
factory.
Which came first in your case—the
money or the planning?
ROGERS: Back in the navy, I had had
a lot of free time on my hands, and
being interested in the nature of the
capitalist system, I decided to study
how to earn some of that capital for
myself. We were a middle-class family.
My father was a lawyer and not the
entrepreneur type that I am, so I had
no real money at that point.
But eventually it came.
ROGERS: Yes, I did make some
money in my first year in Hollywood,
and that started me off. And then
there was M*A*S*H.
Did you ask someone to manage your
finances?
ROGERS: Early on I had determined I
would do it myself. I had witnessed
so-called experts make errors. Recent­ly,
even bank presidents were victim­ized
by the Home-Stake oil swindle.
So if errors were going to be made, I
wanted to be the author of my own
doom, and not blame anyone else.
Besides, the graveyard of finance is
littered with actors, prominent ones,
who had lost their shirts by being
involved with a business manager
who was (a) unethical, (b) unknowl-edgeable,
or (c) a brother-in-law. Of
course, this is less true today than it
was 30 years ago. Now there is an
awareness that professional expertise
is necessary in today's complex finan­cial
world.
/ understand you have filled that role
for some people.
ROGERS: Yes, my own investment
success attracted the attention of
others. They came to me with their
financial problems, and, when I was
able to help them, word began to get
around. My work was mainly in the
tax incentive area. I do not use the
word "shelter." The word was in­vented
by salesmen, and now has
been taken over by people who want
to shoot down what is an excellent
economic tool.
Is financial planning different in the
entertainment industry?
ROGERS: Yes, take a rock singer who
has a couple of gold records. In one
year, he can make $5 million. Before
the Pension Reform Act, he was able
to put away 25 percent of that $5
million in a pension and profit-sharing
plan. But now he is limited to the first
$100,000. Of course, there is income
averaging, but that is really inadequate
with the salary fluctuation that a
musician can have.
So how do you handle such situations?
ROGERS: The best thing is to get a
handle on the kind of year a talent is
going to have. For example, we have a