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Even When You've Got A Plan........

October 5th, 2010 at 12:42 am

Also known as "Kids...You Can't Sell Them To The Gypsies Anymore" That was a big threat in my house when we were little, be good, or I might sell you to the Gypsies! What exactly the gypsies wanted with a bunch of really bad kids I could never figure out..oh well. A short true life tale of personal finance follows. I work with a very nice, 60 something lady, in the health care business. She is a lovely, caring person, never a bad word about anything, until it comes to money. She and her husband are both retired auto workers. Now here in Michigan, unless you are very newly retired, "retired auto worker" is synonymous with "set for life." Those workers have retirement benefits that make government retirees look like the hired help. Medical, dental, pensions, survivor benefits, you name it, the UAW has gotten it for them in spades. But this Lady is back to work. Why, you ask? Because they lent money to one of their children. They put a mortgage, and a bunch of credit card debt out, to help one of their children start a business. The business failed. I didn't ask what kind of business. Anyway the banks were heavily involved, and one or both of their pensions is garnished until I don't know when. So the Lady went back to work to pay some bills. The husband has a bad back, and simply can't work anymore. Their secure, comfortable retirement is gone. So the moral of the story is, love your kids, free babysitting is great, but tell them to borrow money from the Gypsies, after all, they have all that kid buying income coming in!

5 Responses to “Even When You've Got A Plan........”

  1. NJDebbie Says:

    I agree!

  2. creditcardfree Says:

    That is a great piece of advice. One I already plan on taking!

  3. baselle Says:

    Yeah, always proceed with caution when the bank won't lend your kids anything, or worse, you are the second tap. One thing if there's a credit crunch, but usually its because the bank is expert at evaluating business risk and are completely tone-deaf to whining and guilt.

  4. Ima saver Says:

    I bailed my daughter out for many, many years. She never paid me back one dime. I certainly learned my lesson.

  5. Jerry Says:

    I have come to respect the advice that you help family when you can afford to never see the money again... if circumstances lead them to pay it back, then GREAT! If not, as long as you can afford it, you are not out anything. There is never any insurance that payback will come from family or friends. Alas.

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