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To me, that shows that Depp honestly has no clue how much money he has (or doesn't have) and is the prime reason why he would have a financial advisor. It should be the FA's job to inform their client about their financial well being and help curb their spending if they are in the red. Instead, it sounds like they let him go broke.
But in the end, they can't forbid him from spending "his" money. They can only advise.
The article said he bought in 2007. He might have made out like a pirate on those properties.
2007 was the height of the market in L.A , he would of made more of course if he bought from 2009-2012 or so but of course Downtown la has gotten a lot more popular too . Pretty sure prices everywhere are at least near the bubble highs or above for most neighborhoods .
Of course there's holding costs as it's unlikely he rented them out . HOA fees taxes all those years .
A lot of celebrities don't seem to be too smart in their real estate investments .
I wonder though if some buy properties as some kind of tax strategy .
Why own so many properties in the same area that you aren't renting out .
For example all the Kardashians seem to own several properties each.
And I'm sure if they tried to put the breaks on him, he'd be quick to shut them down and demand "his" money.
All an honest financial adviser can do is advise (or resign in frustration). If the client still wants to do something financially stupid after the adviser has discussed the issue with him, well, it IS the client's money.
The only person who can rein in Johnny Depp's spending (so long as there is money left to spend) is Johnny Depp, unfortunately.
A lot of celebrities don't seem to be too smart...
Fixed it for you!
Quote:
Originally Posted by jm1982
I wonder though if some buy properties as some kind of tax strategy .
Why own so many properties in the same area that you aren't renting out.
Could be, but it's hard to see what advantage improved real estate (as opposed to owning vacant land) would hold over stocks and bonds, given that improved real estate has ongoing carrying costs. But I'm hardly a tax expert.
TMG claims he Depp spends $2 million per month on his lifestyle. Depp definitely isn't a frugal guy. Wow.
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The threat of foreclosure is just the latest exchange in what has become a bitter back-and-forth between the actor and his former managers, who he claims mismanaged the $650 million he’s made in the last two decades to the point of depletion.
Depp sued TMG in February for $25 million in a fraud lawsuit, in which he claimed that the firm was trying to foreclose on his primary residence. “As a result of years of gross mismanagement and sometimes outright fraud, Mr. Depp lost tens of millions of dollars and has been forced to dispose of significant assets to pay for TMG’s self-dealing and gross misconduct,” read the complaint.
“In essence, TMG treated Mr. Depp’s income as their own, available to either TMG or third parties to draw upon as desired,” the filing continued.
TMG later filed a cross-complaint against Depp, claiming the actor lived an “ultra-extravagant lifestyle that often knowingly cost [him] in excess of $2 million per month to maintain, which he simply could not afford.”
let's see: $2 mil/month for 20 years comes to...$480 million.
Perhaps part of their money-management job was to tell him to curb his spending.
Of course, that $2 mil/month is THEIR story.
Good grief Johnny, balance your checkbook once in awhile.
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