Celebrity Financial Illiteracy: Why Do So Many Celebrities Wind Up Broke?
May 17, 2011
It never ceases to amaze me how some people that achieve tremendous financial success in relatively short time squander it all. Celebrities—whether actors, athletes or “media personalities”—are the main culprits. Toni Braxton, the singer, song writer and actress, has sold over 40 million albums worldwide. Despite the nine figures in revenues she has generated over her career, she has filed for bankruptcy twice. Nicholas Cage, who in 2009 alone earned over $40 million, is scrambling to avoid bankruptcy as he simultaneously tries to settle a multi-million dollar unpaid tax bill, sell off real estate holdings at a loss and sue his financial adviser who he blames for the mess. One of the saddest examples is Mike Tyson, the youngest heavyweight champion ever, who earned over $300 million before his 35thbirthday. He was bankrupt by age 37.
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