September 14th, 2009 by admin
Let’s just say that you came across a message concealed in a book in the attic of your granny’s house that tells you about a treasure chest crammed with gold and valuable gems priced at over $1,000,000. Now, the message tells you this treasure is buried under a rock, 3 yards north of an apple tree, in an orchard, behind an old grey barn, a half mile west of a giant government, on a dust road, five miles east of Anytown in Anystate in Anycountry. You haven’t any idea where Anytown is, not to mention finding an enormous government, a barn, an orchard for example. How fast would you purchase a map? How snappy would it take you to gas up the automobile or purchase a plane ticket? How would you come up with the time or money to make the trip? You see, it’s all about commitment and belief. Taking the journey needs that sort of commitment and belief. Possibilities abound out there in cyberspace just waiting for you. Q : My youngest boy wants to borrow $5,000 to start his very own business. She believes we should just give him the money and not expect anything in return. He hasn’t got a good track record with cash, so I am a little concerned that my investment will be lost. Should I loan him the money and hope for the best or merely let him know no and hope he does not get too upset? A : the very first thing you must do, Jeff, is establish if this money would be offered to your child in the shape of a present, loan or investment. You, on the other hand, have no idea if you need to offer the money as a loan ( should I loan him the cash ) or as an investment ( concerned that my investment will be lost ). I possess a terribly easy rule when it comes to loaning money to family : NEVER, EVER loan money to anyone you may have to sit next to at Thanksgiving dinner. You, Mr Banker, are giving your child, Mr Sure, you’ll potentially be a little more forgiving than a bank when the loan goes delinquent, but the damage to your private relationship may be intense and tough to repair . The same rule applies with investing in a relative’s business.
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