Jun 30, 2026
For years, Nicolas Cage’s financial woes have been the stuff of Hollywood legends. Stories about the Oscar-winning actor buying everything from castles to a dinosaur skull and even two pet king cobras have cemented his reputation as one of the industry’s biggest spenders.
But, according to Cage, that’s not what ultimately derailed his fortune.
Advertisement
“What is an octopus, $80? You’re not going to go into dire straits buying an octopus,” he told the New York Times during a 2019 interview.
Thanks for subscribing!
Read the best of Moneywise in 5 minutes or less.
By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.
He later told 60 Minutes, in 2023, he earned roughly $150 million during the height of his career but insisted it wasn’t his eccentric collectibles that left him in financial trouble. Instead, he pointed to something many people turn to build wealth: real estate.
Cage explained that “the market crashed before [he] could get [his] money out” after “over investing in real estate.” He ended up writing a check for roughly $6,000,000 to clear his debt rather than declaring bankruptcy.
His experience serves as a reminder that all investments carry risk, especially when they’re overleveraged.
Real estate isn’t always a safe bet
Unlike a luxury purchase that comes with a one-time price tag, real estate often carries years of ongoing expenses. Think: mortgage payments, property taxes, insurance, maintenance, utilities and staffing. If property values decline, homeowners may find themselves owing more than what they can recover from a sale — or struggling to find buyers altogether.
Cage reportedly owned more than a dozen properties at one point, including castles in Europe, private islands and lavish estates across the U.S.. His portfolio included a $25-million waterfront home in Newport Beach, California; a $15.7 million countryside estate in Newport, Rhode Island and an $8.5 million property in Las Vegas.
His portfolio expanded during the real estate boom before the 2008 housing crisis dramatically reduced property values. As the market turned, those assets became increasingly difficult to sell while their carrying costs remained.
In a 2009 lawsuit filed in Los Angeles Superior Court, Cage said he had now been forced to “sell major assets and investments at a significant loss” because of the actions of his business advisor and accountant. While the actor blamed poor financial advice, his former manager argued that Cage ignored repeated warnings to rein in his spending.
Must Read
- The ultra-rich use these 5 real estate strategies to build wealth while they sleep — you can start with just $100
- Here’s the average income of Americans by age in 2026. Are you keeping up or falling behind?
- Insurance companies profit most from drivers who auto-renew without shopping around. Comparing 100+ quotes takes 2 minutes and costs nothing
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Hidden costs can do damage
Cage’s dinosaur skull has become one of Hollywood’s most famous celebrity purchases. He reportedly paid around $276,000 for the fossil before surrendering it after authorities determined it had been illegally exported from Mongolia. The story has been repeated so often that many assume it symbolizes the downfall of his finances.
But compared with a multi-million-dollar real estate empire, a six-figure collectible is a drop in a bucket.
Advertisement
Financial experts often warn that it’s recurring expenses — not necessarily one-time splurges — that quietly erode wealth over time. Luxury homes require regular maintenance, and vacant properties still can generate tax bills. Market downturns can leave owners with illiquid assets that are difficult to sell without significant losses.
In response to his financial struggles, Cage dramatically increased his workload, taking a steady stream of acting roles over the past decade. He has said he never filed for bankruptcy and instead worked to pay off what he owed.
“I own a pet African Crow and a black lizard dragon, then I moved to tax-free Las Vegas and I worked non-stop making three to four movies a year,” Cage said in the aforementioned 60 Minutes interview. “Work was always my guardian angel.”
While real estate has historically created wealth for many investors, concentrating too much of a portfolio in one asset class — particularly with borrowed money — can amplify losses when the market shifts. Even high earners aren’t immune to liquidity loss if too much of their net worth is tied up in a depreciating asset.
For most investors, Cage’s experience is less a cautionary tale about buying unusual collectibles than it is about putting too many eggs in one basket.
You May Also Like
- JP Morgan sees gold hitting $6,000/oz before 2027 — and a Gold IRA lets you hold the physical metal while deferring the tax bill. Get your free guide from Priority Gold
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
AnnaMarie is a weekend editor for Moneywise.
