RICK KID OF INSTAGRAM KYLE HOMAD BROKE WORKS AT STARBUCKS LIVES IN PARENTS BASEMENT

Kyle Holmad made a cool $175 million with the sale of Instagram to Facebook at the age of 23. He was an early engineer on the photo sharing app and attained lots of equity for his coding services. Today, just three years later at age 26, he owes nearly $10 million while living in his parents basement. 
“Last New Years I was was rolling big time in London. Then took my private plane to New York, stayed a few days at a sweet penthouse. Then back to San Francisco to my million dollar mansion,” said Holmad. “Now I’m living in my parents basement in Cleveland, Ohio. Not what I expected. You’d think a hundred and seventy-five million dollars would go farther.”

Holmes first mistake was buying dozens of supercars and ignoring their insurance policy payments. From Bugatti’s to Ferraris, they were all stored in a Silicone Valley warehouse. But the warehouse caught fire and all the cars, estimated at $32.5 million were destroyed. The insurance company would not pay for the damages because of six months of missed insurance payments.


While Holmad still paid nearly $80 million in taxes, he still owes $8.7 to the IRS and $3.1 to the state of California.

He invested another $40 million in failed tech startups, including a social network for cats, and another $25 million in a Ponzi scheme headed by a young hedge fund manager who fled to Russia with all the investors money.

Young tech millionaires don’t have the stigma as professional athletes of going bankrupt soon after their careers end, but it does occur. “When you get young adults with millions of dollars, it’s easy to make bad decisions,” said Professor of Finance at Stanford University, Peter Hill. “Finacial guidance is important for everyone. There are some good services that cost very little and will save people a ton of money.”

People will still buy houses and cars. “We recommend only buying four to five cars at a time and no more than three mansions. One plane is all you need, but a backup could be sensible,” said sports management adviser Shelton Wiseman. His client list includes Scottie Pippen, Terrell Owens, Mike Tyson, and Curt Schilling. “You have to find someone you trust and who has a good track record. You don’t want’ to see all their clients broke. That’s never a good sign.”

Holmad is currently working at a local Starbucks and working on his book from rags to riches, back to rags, detailing his life of living fast with, drugs, sex, money, and power.

SOURCE