Celebrities and Money

[legion]

The deaths of Michael Jackson and Ed McMahan got me thinking...

Michael Jackson was notorious for mis-managing his money, and to a lesser extent, so was Ed McMahan. (Ed's house was in foreclosure, IIRC.)

I find it baffling that some people can have so much money and understand so little about how it works.

[pwd72s]

Money or lack of same is not related to good money management. Some people are grasshoppers, others ants.

[the]

Why do you find it baffling?

They are 2 completely separate issues (the ability to earn the money v. the ability to manage it), esp. for celebrities who can earn very large sums through an artistic talent like acting or singing .

[legion]

I guess if I had a lot of something, I'd take the time to learn about it.

[pwd72s]

Money merely gives one more choices. Some choose to use it for "image", the GT3, The rolex, the McMansion, etc...while others prefer to be more low key while enjoying the security the money gives them. It's really a personality thing as much as it is learning money management skills.

(edit) The sadness of "image" is when people get in wayyy over their heads, then end up losing it all.

[VincentVega]

Same thing can be said for tons of people, especially doctors and lawyers. I can only guess some think the spigot will always be on.

[Neilk]

Originally Posted by legion

I guess if I had a lot of something, I'd take the time to learn about it.

Legion, you are never going to get anywhere with that attitude. That's why you let managers handle your money.

[Pazuzu]

They both made money.
They both spent money.
The both basically ran out of liquid money right when they died.
Their estates will cover any debts they have, so no one else gets hurt.


Seems like they both did it just perfectly! You can't take it with you, might as well go broke before you die, rather than after.

[Hugh R]

As a kid my Dad was good friends with Harold Edgeryton, the inventor of the laser, for which he got the Nobel Prize in Physics. Dr. Edgerton went on the found the high tech company EG&G. very, very rich, and drove an older vw bus.

[jhynesrockmtn]

In just one of many interviews I saw over the weekend an attorney in the music business was commenting on how brilliant MJ could be about money and dealmaking in terms of understanding royalties and their value. He said he was shrewd at negotiating contracts. Thus the purchase of the Beatles catalog and owning his own.

The flipside was that he had no idea what he was spending personally and was often surrounded by leaches he could not say no to when they wanted something. These same or similar leaches could not say no to him when he wanted to buy the elephant man's bones or whatever other stupid stuff he regularly purchased. He went through financial advisors and doctors like an alcoholic goes through cheap beer.

He was obviously a smart and talented but very troubled individual. He bought crap to fill some void he had in his life. I've seen former relatives do the same. Go deep into debt buying whatever crap is on TV. My ex father in law has 5 of everything.

[widgeon13]

Very easy to explain, more money than brains. He (MJ) made much more money than anyone in a normal spending mode could spend or even comprehend, so much so that his spending practices were not significant until they got out of control.