We’ve all heard the horror stories of celebrities who amassed fortunes in the entertainment industry, then lost fortunes just as fast as they acquired them. Their bankruptcy stories are as famous as their talents that brought them what seemed to be endless finances.
The fall to the depths of debt has claimed the careers of many popular entertainers, some being able to re-invent themselves financially, others being not so lucky. What happened to the lovely Kim Basinger’s money? What unfortunate fate befell the wallet of Gary Coleman (of “Different Strokes” fame)? Why did MC Hammer fall from financial grace? The answers to these questions (and questions for other broke celebrities as well) are many. Some made bad business decisions. Some ran into legal problems. Some were just plain stupid when it came to spending their money.
A bankruptcy related article on legalzoom.com (http://www.legalzoom.com/money-matters/bankruptcy/how-celebrities-go-bankrupt) quotes a Hollywood financial advisor in reference to the wisdom he imparts on his sometimes-foolish clients:
One Hollywood financial advisor, Scott Feinstein, told the New York Times about a call he received from a client in his mid-twenties who wanted to buy a $35,000 watch. "I said 'What time does it say?' and he said, 'Ten minutes after 3.'" Feinstein recalled. "I told him, 'Mine says 10 after 3 too, and it cost me 60 bucks. Put the watch down.'"
It’s sad, but it’s true. Many equate success with the ability to acquire lavish, and sometimes ludicrous, play toys. But not having the understanding that the next album may not sell, or, the next movie might flop, leads to the unfortunate demise of a celebrity’s wealth. Here are some troubling accounts of such celeb bankruptcies:
Kim Basinger: Basinger bought the town of Braselton, Georgia for $20 million. She later had to sell it when she filed for bankruptcy.
Debbie Reynolds: Opened the Debbie Reynolds Hotel and Casino in Las Vegas. Casino flopped, Reynolds files for bankruptcy.
MC Hammer: You already know the story (but here it is anyway). 40-member entourage. Enough said.
The late Michael Jackson: $200,000 a month to maintain his Neverland Ranch home. Mike didn’t know how to cut his own yard?
These are just a few examples of a much larger problem. Here’s an idea! Don’t spend more money than you actually have. As Arsenio Hall used to say, “Things that make you go, Hhmmmmm”.
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