You Can’t Have Your Candy And Eat It Too!
Wela Financial Advisors on what we saw, what we learned, and what we should do on this week’s episode of Life or Debt on Spike.
In a bad version of “Where Are They Now,” former childhood pop star, Aaron Carter, has found himself dead broke. Not just broke, but in debt. And this is AFTER filing for Chapter 7 bankruptcy to clean the slate with the IRS. He had back taxes owed from the money earned during the height of his popularity. As so many child stars have experienced, Aaron’s parents didn’t do him any favors and instead spent his money on luxury homes, yachts and cars… thus he finds himself in one helluva mess.
Thanks to a law best known as the Coogan Law, a mandatory 15% of childhood stars earnings have to be set aside for them when they turn 18. So that’s good news, right? In most cases “yes,” but in his case “NO.” Aaron had several million dollars in the bank when he turned 18 but decided to sign it all over to his parents in order to keep them from going to jail for tax evasion. The hits just keep coming… and no, I’m not talking about Aaron’s Party.
Aaron has earned over $100 million dollars in his career, but due to total mismanagement of his business and money he’s found himself in debt to the tune of $150,000… or so he thought. Remember how we said the hits keep coming? Well, Victor Antonio brought in a forensic accountant to help Aaron out. What she found was eye-opening to say the least. He was over $220,000 in debt and had over $112,000 unknown withdrawals from his bank account in the last seven months. Here’s a guy making half a million dollars a year and he doesn’t have two nickels to rub together. Why you might ask? To borrow Victor’s words, three reasons:
- Not paying attention
- Not knowing his numbers
The sad part is that Aaron wants to build a family and provide for them. But he can’t if he keeps going on like this. He MUST take charge of his own life and business if he wants to get back on track. That means getting rid of all the money-grubbers that find their way to celebrities. The people who don’t add any value but just suck the life (money) out of whomever they can attach to.
Aaron Carter went from being featured on MTV’s cribs to living in a leaky apartment with no money. But with Victor’s help and some big life changes on Aaron’s end, all that can change.