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Although you might assume that everyone involved breaking Bad While all five seasons of its popular, Emmy-winning series have made a fortune in the bank, it turns out that’s not the case for one member of the White family.
RJ Mitte, who plays Walter White’s son Walter Jr., recently revealed that he left the show with more debt than wealth.
he told iced coffee time The podcast recounts an unfortunate situation where he trusted the wrong people to handle his finances (1).
“I paid more in taxes than ‘Breaking Bad’ got,” Mitte said. “I do have a terrible business manager.”
Apparently, his business manager didn’t actually do the job he paid her to do:
“I wrote a check to pay my taxes and instead of using it to pay my taxes, she would send me a false tax return and take the money.”
After five years of moving his taxes offshore, the taxman finally came knocking and Mitt found himself in a nightmare situation.
“Then after about five years, the total compounded annually is about 17%, and you get this nice big check,” he said, revealing that the amount of tax he owes now far exceeds any money he’s made from the show. “It only took me 10 years to pay it off.”
Co-star Jack Selby was curious if she would be punished for the bribery.
“Is she still working today, or is she in jail?” he asked.
“She’s nearby,” Mitt replied.
Unfortunately, there’s not much Mitte can do about it as taxpayers still have the burden of paying the tax. He is still responsible for paying the tax plus any compound interest.
“The IRS doesn’t really care about you,” he said. “All they care about is you making sure you paid – and everyone else who’s dealing with it is your fault because you didn’t do your due diligence.”
So what did he do when the IRS letter arrived?
“You call your CPA, you call the licensed person, well — not her — you call another attorney,” Mitte said. “You call the forensic accountant and then you understand, okay, what happened?”
What’s worse is that he’s not her only target. Like most scammers, she targeted the vulnerable.
He told the host that she also stole lessons from 14 other actors he had come into contact with, all of whom were disabled or older actors in the industry.
The hosts want to know why Mitt isn’t pursuing her criminally. He explained that the situation was deliberately made complicated and expensive, which made it impossible for vulnerable victims to pursue it.
“[The money is] Also wired – that’s not her name…it’s very complicated. We’ve traced offshore accounts to shell companies,” he said. “We’re not talking hundreds of thousands of dollars, we’re talking tens of millions of dollars.
“Once you’re out of the country, there’s not much you can do.”
Mitte points out that because she’s targeting older actors and those with disabilities who receive structured compensation—meaning, depending on their contracts, they may make most of their money slowly through residual income over many years(2)—they don’t have the time or money to follow her.
“You’re talking years of litigation, years of appeals, years of forensic accountants — so the cost could be in the millions of dollars,” he said. “Then it’s like, are you going to recover? Probably not.”
While you may not be a celebrity participating in one of the most successful shows of all time, similar scams happen to people around the world if you trust the wrong people. But there are ways to protect yourself from these malicious actors.
Learn more: Warren Buffett turned $9,800 into a $150B fortune using 8 solid, repeatable money rules. Start using them to get rich (and stay rich) today
What advice would Mitt have after all he’s been through? Know where every dollar you make goes.
“Document it, account for every dollar, and keep track of it,” he said. “Know where and how your money is spent.”
He clarified that technology is actually helping vulnerable people avoid this, as digital banking means these scammers can’t hide information in a pile of documents on a shelf like they could before.
“It’s really about knowing where your money is coming in and where it’s going out.”
Budgeting apps help you quickly track every dollar so you always know where your money is going.
One app you can try is Monarch Money. This budgeting app helps you quickly track your spending and monitor your account balances, transactions, and investments all in one place. You get a clear view of your spending, and your incoming and outgoing transactions can be monitored in real time, so you always know where your money is going.
Monarch Money currently offers a 7-day free trial so you can see if the app is right for you.
For a limited time, you can even get 50% off your first year with code WISE50.
If you’re self-employed like an actor or run your own business, you’ll want to make sure you set aside a portion of your income for tax time. Since taxes aren’t automatically deducted like with traditional employment, it’s your responsibility to make sure the money isn’t spent.
While saving enough money won’t protect you from these scam business managers, it will ensure you have cash available immediately when it comes time to file your taxes. If you fail to pay on time, any money you owe will be subject to compound interest, which, as Mitte’s situation proves, can quickly get out of control.
Of course, you don’t want to leave a large amount of cash sitting in a regular checking account without earning any interest, so it makes sense to use a high-yield account to hold those funds.
A high-yield checking or savings account like SoFi can help. SoFi offers interest rates that are typically 10 to 12 times higher than the national average on traditional savings accounts, which currently is about 0.40%. Additionally, SoFi charges no monthly account fees or overdraft fees.
Open a high-yield checking and savings account with SoFi today and you can earn up to 4.30% APR.
You can also get up to $300 in bonuses when you set up direct deposit.
When it comes to who will manage your money, Mitt’s situation highlights how important it is to find someone you truly trust.
Before you decide on a financial advisor or other money management professional, talk to several financial managers and ask for their references. Be sure to verify the legitimacy of these references and consider tapping your personal network for advice. They can verify whether they have personally experienced any red flags.
If you’re not sure where to find qualified advisors, consider Advisor.com. All you have to do is answer a few simple questions and provide your zip code to be matched with potential advisors that best suit your needs.
Their licensed financial professionals are qualified to help with a variety of financial situations, from self-employed management plans to retirement planning, evaluating your portfolio and diversifying your investments.
Make a free phone appointment with your favorite choice today to find the right advisor for you.
If you find yourself in a similar severe debt situation, you can also look for debt relief options.
Consolidating all your debt into a personal loan with Credible is an effective way to get out of debt faster. Instead of juggling multiple monthly payments, you’ll need to manage one predictable payment each month.
The process of finding the right loan just got easier with Credible’s online marketplace. Credible lets you compare and shop for the lowest interest rates in just a few clicks.
In less than three minutes, you’ll see all the lenders willing to help you pay off your credit card or other debt with a personal loan.
If you owe a large amount of debt, you may also want to see if you qualify for a debt relief program to help clear out a large portion of your debt.
With Free Debt Relief, you can speak with a certified debt relief counselor for free, and they can show you how much money you can save by working with them.
If you qualify, they can negotiate a settlement with your creditors until all of your registered debts are resolved.
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@theicdcoffeehour (1); Spotlight (2)
This article provides information only and should not be considered advice. It is provided without any warranty of any kind.
