Michael Jackson Leaves Behind Troubled Finances — Including a Home in Foreclosure
Image via Wikipedia
We all know by now that even the rich and famous can end up poor and infamous. Indeed, being famous cannot completely guard someone against making poor money decisions. After all, people are people, and some never learn the importance of financial discipline. Many of the richest people fall on hard times by failing to follow the basics of personal finance:
- Make more than you spend.
- Avoid getting into more debt than you can handle.
- Set aside money for a rainy day.
Unfortunately Michael Jackson fell into the category of rich people who do not manage their money very well. He lived a luxurious lifestyle — one that overran his income. It seemed as though someone so rich could never spend more than he earned, but it still happened. He also got into legal trouble, adding further to his expenses. Most people heard about Michael Jackson’s financial troubles nearly two years ago, when the first inkling that his ranch Neverland was going into foreclosure. (The ranch was saved from auction in March 2008 when a wealthy real estate mogul, Thomas Barrack, bought the ranch.) At any rate, it is clear that there are other financial issues to be worked out by Jackson’s estate.
Putting together an estate plan
This sad tale serves as a reminder that it is important to put together an estate plan. Michael Jackson, though a great entertainer and a worldwide icon, did this rather poorly. Tisa Silver, at Bizzia, points out that there are four essential points that good estate planning must cover:
- Accumulation of wealth.
- Preservation of that wealth and minimization of costs.
- Use of your assets if you should become incapacitated.
- Distribution of the assets after death.
In the end, it is important that you prepare your finances in life and in death. It makes things easier for you and your family in the long run, and protests those you care about.
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June 27th, 2009 at 1:17 pm
[…] think that he always made wise decisions. Or maybe his investments were reasonable, but the way he overspent (his legal problems only added to his costs) rendered his investments decisions moot. While […]
June 28th, 2009 at 9:07 am
[…] Comment // It is indeed sad that pop star Michael Jackson has died. He left behind a dubious financial legacy, but his prowess as a performer cannot be denied. He is a worldwide icon, and will likely remain […]
July 8th, 2009 at 4:20 am
[…] Michael Jackson Leaves Behind Troubled Finances ? Including a Home in Foreclo… Image via Wikipedia We all know by now that even the rich and famous can end up poor and infamous. Indeed, being famous cannot completely guard someone against making poor money decisions. After all, people are people, and some never learn the importance of financial discipline. Many of the richest people fall on hard times by […] […]