Financial Lessons From Michael Jackson

Financial Legacy There's much talk about the musical genius of the late Michael Jackson. But in my column today I wanted to discuss the lesson we can learn from how Jackson handled his money. At one point the pop icon was spending about $20 to $30 million above his earnings each year, according to one expert. And he came very close to losing his Neverland ranch to foreclosure. Read about how a sense of entitlement can cost a fortune in Jackson's Money Woes Can Teach Us About the Dangers of Entitlement. Jackson's financial downfall is surprising considering his assets, which include the partial rights to many of the greatest hits by The Beatles and other great artists. But Jackson apparently borrowed heavily against his catalog of songs. He also had some hefty legal bills. Read Legally, Jacksons Face Long & Winding Road (June 30) by Paul Fahri. The Associated Press reported Jackson's net worth at $236.6 million. But according to the news service, "Documents do not show how much money he had coming in that year or how much he was spending, which makes it hard to estimate just how cash-poor he was." Here are some of the latest reports about Jackson's finances: * Battle to control Jackson's fortune begins (June 30) * AP Exclusive: Jackson said net worth $236M in 2007 (June 30) * Jackson's will cuts out ex-wife Debbie Rowe (July 1) What's In the Will? For a time it was unclear whether or not Jackson had left a will. However a will has surfaced. Jackson's mother, Katherine, was named guardian of his children and the will puts his assets in a trust. Here are a few articles that emphasize the necessity of a will: * Property Rights and Responsibilities After a Loved One Dies (May 30) by Benny L. Kass " Parents Can Help Ease the Burden (July 19, 2008) by Mara Lee " A Worthy Read to Get Serious About Estate Planning (Aug. 28, 2008) By Ilyce R. Glink with Samuel J. Tamkin I Need Your Money, Honey Cash strapped families are looking to an untapped resource for help: their own children. Last week's Color of Money Question stemmed from a Kiplinger Q&A in which a reader asked if she and her husband should require their teenage children, who have part-time jobs, to contribute to the family pot. Here are your comments: "Absolutely," said Regina Duell of Lancaster, Pa. "Plus, children will learn to appreciate money, work, what it costs to have the life you want and some of the things their parents do to provide that life." As a nation, she says we're depriving our children "of a financial education." Darlene Register wrote: "We were taught to take care of ourselves very early on. If you had a job or paper route you helped buy your clothes, shoes, supplies, etc." The Fairfax, Va., resident says her parents were savers. "That is why in the hard times, of which there were many, we survived." "The operative word is 'family,' which implies cooperative unit," said Karen Goldsmith-Pestana of Windsor, Conn. "Welcome to the real world, kiddo." Ted Moore of Centreville, Va. wrote, "First, the family should cut all unnecessary expenses. Then if they are still having trouble making ends meet, ask the kids to pitch in. A positive side affect is a stronger family." "It seems like such a burden to ask a child of 16 for rent money if it's not absolutely necessary," wrote Katie Kimani of Brockton, Mass. She said her parents "got by" so she used her earnings for car insurance, school supplies, etc. "I didn't realize until now what a gift that was to be able to use the money as I saw fit." Severn, Md., resident Sheri Wallace wrote: "Having teens contribute to the family budget is teaching them what Uncle Sam does. I would rather teens learn about a budget that includes investing and saving by using their income to provide for a portion of their own personal needs." Sara Solnick of South Burlington, Vt., said that she provides the basics, but extras can be cut. "For example, I pay for my kids' movie tickets, but if our financial situation were to change, those would be things I would cut, and they'd have to use their own money." Rebecca Goldie in Oxford, Pa., wrote, "As long as a parent claims a tax credit for a child, that child is still a dependent and the basic needs are still the parent's responsibility. The key is to give your kids a taste of responsibility - not to overburden them with your debts and obligations." "Years ago when I was a family counselor, I encouraged parents to have their children give them a percentage of each pay," wrote Kay A. Averette of Canton, Ohio. Kids need to know about rent she says. "If the parents still resisted, I told them to take the money and give it back upon graduation. Anyone remember that scene in "Serpico?" "Unless a family is in a desperate situation, I think that children should learn to manage their own money, with guidance from their parents, but not hand it over," said Ellen Mahoney of Jacksonville, Fla. Gordon Berry in Sioux City, Iowa wrote: "I don't think there's one good answer for all, but would suggest if the family is a close and loving one, father and mother can put all their cards (bills) on the table, so the youth can see where he or she is actually making a difference. It would result in growth for everybody." Nancy Zipkin-Dunn of Orinda, Calif., said, "We were lucky enough to be able to pay for our children's college education in its entirety, but part of the reason we were willing to do so was that they did their part as well -- both of them have bought clothes by-the-pound at Goodwill stores or other second-hand resources rather than counting on the Bank of Mom and Dad to pay for everything." Eileen Gonyeau of St. Paul, Minn., said that her grandmother worked in a wallpaper factory at the age of 13. "On Saturday she got her pay envelope and took it home to her dad who gave her back a dime, which bought her a bit of face powder or some other treat. She was proud to contribute to her family." It was the same for Gonyeau's mother who grew up during the depression. "I see nothing wrong with asking younger kids to pitch in to pay for groceries or other necessities when a family is struggling. Kids gain a sense of self worth from knowing that they can help solve problems." The topic of kids and money always sparks commentary and questions. Read Crib? Check. Toys? Check. Don't Forget a Budget, A Will and Insurance. (June 28) by Erin Burt. She names the four financial items that are a must for every new parent. Charity Brown contributed to this e-letter. You are welcome to e-mail comments and questions to singletarym@washpost.com. Please include your name and hometown; your comments may be used in a future column or newsletter unless otherwise requested. -Michelle Singletary

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Panorama Archive: When Dimbleby met Mugabe

During a break from UK-brokered talks in Geneva in November 1976, guerrilla leader Robert Mugabe spoke to Panorama's David Dimbleby about his plans for the future of Zimbabwe

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Boxer Ali on his Islamic conversion

Boxer Muhammad Ali speaking in March 1974, discusses Islam, money and the perils of Las Vegas in this rare archive footage unearthed after 40 years.

The film forms part of a time capsule of news from the 1960s and 70s recently uncovered from beneath General Eisenhower's wartime London headquarters.

Ali discusses his Islamic beliefs with reporters in Beirut and explains how his face has stayed scratch-free despite 180 fights.

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Jackson leaves estate to family

Jackson's will estimated his estate to be worth more than $500m

Michael Jackson's will has been filed in a Los Angeles court, giving his entire estate to a family trust.

The document, dated 7 July 2002, also reveals the star "intentionally omitted" to provide for his former wife, Debbie Rowe.

Jackson's mother, Katherine, is named as a beneficiary of the trust and the guardian of the singer's three young children, who are named in the will.

It estimated Jackson's estate at that time to be more than $500m (£303m).

Custody rights

The Michael Jackson Family Trust would benefit his three children, his mother and unnamed charities, according to Reuters.

Katherine Jackson is currently looking after the children

The news agency also reported that Jackson's five-page will said: "I have intentionally omitted to provide for my former wife, Deborah Rowe Jackson."

Rowe married Jackson in 1996 but filed for divorce in 1999. She gave up custody rights to the children but sought them again in 2003.

They agreed a settlement in 2006 but the terms were never disclosed.

She is the biological mother of Jackson's eldest children - Michael Joseph Jackson Jr, known as Prince Michael, 12, and Paris Michael Katherine Jackson, 11.

The singer's youngest son - seven-year-old Prince Michael II - was born to a surrogate mother whose identity has never been revealed.

Long-time friend and singer Diana Ross is also named as guardian for Jackson's children in the event that his mother was unable to fulfil her duties.

Katherine Jackson was granted temporary guardianship of Jackson's three children on Monday.

'Remarkable legacy'

The will said Jackson's estate consisted almost entirely of "non-cash, non-liquid assets, including primarily an interest in a catalogue of music royalty rights which is currently being administered by Sony ATV, and the interests of various entities".

The most important element of Michael's will is his unwavering desire that his mother, Katherine, become the legal guardian for his three children Executors John Branca and John McClain

That refers to the singer's share of the Sony/ATV Music Publishing catalogue that includes rights to the songs of The Beatles.

The will names Jackson's lawyer John Branca and John McClain, a music executive and a family friend, as co-executors of the will.

In a statement, Mr Branca and Mr McClain said: "The most important element of Michael's will is his unwavering desire that his mother, Katherine, become the legal guardian for his three children.

"As we work to carry out Michael's instructions to safeguard both the future of his children as well as the remarkable legacy he left us as an artist, we ask that all matters involving his estate be handled with the dignity and the respect that Michael and his family deserve."

Meanwhile, the Jackson family issued a statement saying that no "public or private viewing" of the singer's body would be held at Neverland.

Speculation of a viewing had prompted fans and reporters to gather outside the property, but the family said they would announce plans "regarding a public memorial" shortly.

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AP Exclusive: Insomniac Jackson begged for drug

By LYNN ELBER, Associated Press Writer Lynn Elber, Associated Press Writer 42 mins ago

LOS ANGELES – Michael Jackson was so distraught over persistent insomnia in recent months that he pleaded for a powerful sedative despite warnings it could be harmful, says a nutritionist who was working with the singer as he prepared his comeback bid.

Cherilyn Lee, a registered nurse whose specialty includes nutritional counseling, said Tuesday that she repeatedly rejected his demands for the drug, Diprivan, which is given intravenously.

But a frantic phone call she received from Jackson four days before his death made her fear that he somehow obtained Diprivan or another drug to induce sleep, Lee said.

While in Florida on June 21, Lee was contacted by a member of Jackson's staff.

"He called and was very frantic and said, `Michael needs to see you right away.' I said, 'What's wrong?' And I could hear Michael in the background ..., 'One side of my body is hot, it's hot, and one side of my body is cold. It's very cold,'" Lee said.

"I said, `Tell him he needs to go the hospital. I don't know what's going on, but he needs to go to the hospital ... right away."

"At that point, I knew that somebody had given him something that hit the central nervous system," she said, adding, "He was in trouble Sunday and he was crying out."

Jackson did not go to the hospital. He died June 25 after suffering cardiac arrest, his family said. Autopsies have been conducted, but an official cause of death is not expected for several weeks.

"I don't know what happened there. The only thing I can say is he was adamant about this drug," Lee said.

Following Jackson's death, allegations emerged that the 50-year-old King of Pop had been consuming painkillers, sedatives and antidepressants. But Lee said she encountered a man tortured by sleep deprivation and one who expressed opposition to recreational drug use.

"He wasn't looking to get high or feel good and sedated from drugs," she said. "This was a person who was not on drugs. This was a person who was seeking help, desperately, to get some sleep, to get some rest."

Jackson was rehearsing hard for what would have been his big comeback — his "This Is It" tour, a series of performances that would have strained his aging dancer's body. Also, pain had been a part of his life since 1984, when his scalp was severely burned during a Pepsi commercial shoot.

"The Incredible Hulk" star Lou Ferrigno, who's been working out with Jackson for the past several months, said Jackson was focused on health.

"When he was with me, he wasn't different. He wasn't stoned. He wasn't high. He wasn't being aloof or speedy. Never talked about drugs," Ferrigno said. "I've never seen him take drugs. He was always talking about nutrition."

Several months ago, Jackson had begun badgering Lee about Diprivan, also known as Propofol, Lee said. It is an intravenous anesthetic drug widely used in operating rooms to induce unconsciousness. It is generally given through an IV needle in the hand.

Patients given Propofol take less time to regain consciousness than those administered certain other drugs, and they report waking up more clear-headed and refreshed, said University of Chicago psychopharmacologist James Zacny.

It has also been implicated in drug abuse, with people using it to "chill out" or to commit suicide, Zacny said. Accidental deaths linked to abuse have been reported. The powerful drug has a very narrow therapeutic window, meaning it doesn't take doses much larger than the medically recommended amount to stop a person's breathing.

An overdose that stops breathing can result in a buildup of carbon dioxide, causing the heart to beat erratically and leading to cardiac arrest, said Dr. John Dombrowski, a member of the board of directors of the American Society of Anesthesiologists.

Because it is given intravenously and is not the kind of prescription drug typically available from pharmacists, abuse cases have involved anesthesiologists, nurses and other hospital staffers with easy access to the drug, Zacny said.

In recent months, Lee said, Jackson waved away her warnings about it.

"I had an IV and when it hit my vein, I was sleeping. That's what I want," Lee said Jackson told her.

"I said, 'Michael, the only problem with you taking this medication' — and I had a chill in my body and tears in my eyes three months ago — 'the only problem is you're going to take it and you're not going to wake up," she recalled.

According to Lee, Jackson said it had been given to him before but he didn't want to discuss the circumstances or identify the doctor involved.

Londell McMillan, attorney for Katherine and Joe Jackson, talked about Lee's disclosures Tuesday on CNN.

"It's a hearsay comment. It would be inadmissible anywhere in a court of law," he said. "I also wonder why anyone would make a comment about something that they don't have much knowledge about. They didn't see the drug administered. It's again because of the Michael Jackson factor."

Lee said the singer drew his own distinctions when it came to drugs versus prescription medicine.

"He said, `I don't like drugs. I don't want any drugs. My doctor told me this is a safe medicine,'" Lee said. The next day, she said she brought a copy of the Physician's Desk Reference to show him the section on Diprivan.

"He said, 'No, my doctor said it's safe. It works quick and it's safe as long as somebody's here to monitor me and wake me up. It's going be OK,'" Lee said. She said he did not give the doctor's name.

Lee said at one point, she spent the night with Jackson to monitor him while he slept. She said she gave him herbal remedies and stayed in a corner chair in his vast bedroom.

After he settled in bed, Lee told Jackson to turn down the lights and music — he had classical music playing in the house. "He also had a computer on the bed because he loved Walt Disney," she said. "He was watching Donald Duck and it was ongoing. I said, `Maybe if we put on softer music,' and he said, `No, this is how I go to sleep.'"

Three and a half hours later, Jackson jumped up and looked at Lee, eyes wide open, according to Lee. "This is what happens to me," she quoted him as saying. "All I want is to be able to sleep. I want to be able to sleep eight hours. I know I'll feel better the next day."

Lee, 56, is licensed as a registered nurse and nurse practitioner in California, according to the state Board of Registered Nursing's Web site. She attended Los Angeles Southwest College and the Charles Drew University of Medicine and Sciences in Los Angeles.

Comedian Dick Gregory, who knows Lee and her work, said he believes Jackson's insomnia had its roots in the pop star's 2005 trial on child molestation charges. Jackson's health had deteriorated so much that his parents called Gregory, a natural foods proponent, for help.

Gregory said Jackson wasn't eating or drinking at the time and, after he was persuaded by Gregory to undergo testing, ended up hospitalized for severe dehydration.

But Jackson obviously was healthy enough to withstand the level of medical scrutiny needed to insure him for the upcoming high-stakes London concerts, Gregory said. "That you don't trick," he said of the exams.

Lee, who has also worked with Stevie Wonder, Marla Gibbs, Reynaldo Rey and other celebrities, said she was introduced to Jackson by the mother of one of his staff members. Jackson's three children had minor cold symptoms and their pediatrician was out of town.

Lee said she went to the house in January, the first of about 10 visits there through April, and treated the children with vitamins. Michael, intrigued, asked what else she did and took her up on her claim she could boost his energy.

After running blood tests, she devised protein shakes for him and gave him an intravenous vitamin and mineral mixture — known as a "Myers cocktail," after Dr. John Myers — which Lee said she uses routinely in her practice.

"It wasn't that he felt sick," she said. "He just wanted more energy."

Lee said she decided to speak out to protect Jackson's reputation from what she considers unfounded allegations of drug abuse or shortcomings as a parent.

"I think it's so wrong for people to say these things about him," she said. "He was a wonderful, loving father who wanted the best for his children."

___

AP Medical Writer Lindsey Tanner in Chicago, AP Television Writer David Bauder in New York contributed to this report and AP Television reporter Natalie Rotman in Los Angeles contributed to this story.

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