From Burt Reynolds to Johnny Depp, why do so many mega-rich celebs go broke?

New York Post ^ | 07/26/2018 | Maureen Callahan

[Boogieman]

#1 - They tend to lead extravagant lifestyles and don’t realize their income will dry up sooner rather than later
#2 - They tend to hire scumbags for managers and accountants and give them too much leeway so they get ripped off very often.

[headstamp 2]

Poor Burt is all busted up from doing his own stunts.

[yawningotter]

I am sure substance abuse and weird cults play into it too.

[wally_bert]

Any debt would be automatic.

Apart from one obligation that should end at the first of the year, I have none apart from routine expenses.

I’ve been a debt slave and I would rather starve than go down that road again.

[Nifster]

Drug and alcohol abuse

[Boogieman]

Pretty sure he's the keyboard player:

[Boogieman]

I think Netflix just bought Nic Cage from the IRS and keeps him in storage in the basement at their HQ until they need to put out another half dozen crappy movies starring him.

[HamiltonJay]

I don’t think its always a lack of inner resources...

I think for some of them, at least, its a delusion that they will always make more.

Lets be honest, most of these examples get large sums of money at relatively young ages, for not a whole lot of work...

I am not saying they may not work hard, but they aren’t working harder than a lot of folks who barely scrape by.

Then once they have “made” it, the money almost grows on trees... Put 3 months in on a movie, make multiple 8 figures or more.... sit around for a year spending it like water... because you can.. then go do it again...

Add to that, the fact you get surrounded by clingers on and yes men very easy to get lost in your own little delusions.

[gigster]

Apparently, Johnny Depp thinks nothing of drinking a three thousand dollar bottle of exotic wine for dinner.

[robel]

I wonder if the rate of their spending has anything to do with the size of their egos. Maybe that’s too obvious. So I guess they’re just victims.

[snoringbear]

“They probably have unrealistic expectations of future earning potential, as well as a limited skill set.”

You pretty much nailed it. Actors and pro ball players think alike. Most believe that they’re the exception and will continue to act/play forever. However, the reality is that youth, good looks, athletic ability is fleeting and catches up with them much sooner than they expect. In defense of the pro leagues, NFL, NBA, NHL, they actually hold extensive training classes with their incoming rookies on how to manage money and protect wealth. Sadly, many ignore the advice. After all, this is still a free country, more or less. And, there’s no law against being stupid.

[Dubh_Ghlase]

Totally agree on all accounts. If you spend more than you make, regardless of how much that is, the results are the same (a disaster).

Unless, of course, you're congress...

[patriot08]

Several times Reynolds came close to achieving her ambition of establishing a museum dedicated to Hollywood memorabilia, but no one has proved willing to back the project. Instead her houses became museums of sorts, and she ended up spending too much of her own money (money that she earned again after being ripped off by Carr and third husband) and endured much heartbreak over her mostly failed ambition to save beloved artifacts from movies tor the public's enjoyment.

Quite a girl, and I miss her.

[ScottfromNJ]

How not to go broke when you have millions:

1. Pay off your debts, buy one nice but modest priced home and own it outright.

2. Put the rest in the bank, invest in diversified interest bearing accounts.

3. Keep your yearly spending below what you earn from your investments, which is still in the hundreds of thousands per year, you can still enjoy a nice lifestyle.

You don’t need to be a financial genius to follow these basic steps.

[Graybeard58]

Most people who win the lottery are broke in five years. They spend, spend, spend, on frivolities.

………………………………………………………………………………………………………………

You just described my retirement plan.

[Celerity]

It’s not just mega rich celebs that do this.

Any rich person is constantly approached by people looking for money. Invest in this, invest in that. I need your name on a restaurant, etc.

And they flock to these investments because they are mostly duped. Or just make bad investments.

Of course they spend it on stupid garbage too. But that’s only a part of the picture. The wealthy people that I know choose to drive very common cars and dress in kmart clothes not only because they fear abduction and crime, but they fear their neighbors as well. Or in my case, my town.

My county approaches me on things all the stinking time. And I’m not even rich. Far from it, actually. But I own a business and it operates in 3 states. They think I’m their piggy bank.

[Roman_War_Criminal]

And we’re supposed to feel sorry for these coddled millionaires who had everything and lost it?

Puh-leaze!

I started working when I was 12 and I probably will never retire in style. It is what it is.

In their case, they had the lottery ticket and threw it away on stupid stuff.

[ontap]

Won’t be long before Leonardo DiCaprio’s name will be added!!!

[Celerity]

Jerry Seinfeld is a big car guy. He actually had a little business that would make clients put their cars in his name, then he would sign it back. This way owners would be able to sell “A car formerly owned by Jerry Seinfeld”. Seinfeld cars are everywhere in the NE.

But look at Jay Leno. I have no idea how this guy hasn’t run out of money. I know he doesn’t buy clothes but his car collection is epic.

His car collection employs as many people as his talk show did.

But how does he make money ? he’s got to be hemorrhaging cash !

[ontap]

Just like athletes they think they will always be attractive and young. And that producers will always cast them in starring roles!!!