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11-25-2013, 01:02 PM
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#1
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Moderator Emeritus
Join Date: Apr 2011
Location: Michigan
Posts: 9,424
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"Family Bank" ...... is that you?
This article may hit home with some: 50-plus crowd prone to becoming 'family bank'
http://www.detroitnews.com/article/2...50022/-1/rss23
Bob
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11-25-2013, 01:14 PM
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#2
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Moderator Emeritus
Join Date: Oct 2012
Location: Cape Coral, Florida
Posts: 4,796
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Yep,
Me and my wife saved and lived well below our means to put our children through college, retire at 55 and live comfortably.
Our children took minimal loans of about 3,000/year so they had some skin in the game.
After gaining employment and paying on them for 2 years, we paid off the balance.
I am not the family bank. My saving has already been allocated to supporting me until I die.
JMHO,
Doug
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Cape Coral, Florida
2021 Toyota Tundra SR5, 5.7 V8
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11-25-2013, 01:55 PM
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#3
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Senior Member
Join Date: Oct 2011
Location: Central California
Posts: 2,283
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Interesting article, especially since my brothers and I actively use our parents as a "Family Bank".
The article focuses on the negatives that could be associated with being/using a family bank, but in our family it is a very positive thing. My Brothers and I, all in our 30s, are very financially sound and don't require assistance -- however occasionally we need to access credit like most folks. In our family my parents are in a position to be that source of credit. Its not charity, it has an interest rate, and needs to be paid back in specific terms. But the benefit is very much to my parents, they are able to use their capital in a way that returns an interest rate far better than a money market account or CD, and my Brothers and I have access to very discounted loans.
We certainly don't exclusivly use the "Family Bank", we all carry traditionally house notes, and occasionally will access other bank provided capital just to keep and maintian our individual credit ratings. But for short term, epecially unsecurred debt, the family bank is the way to go for us.
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11-25-2013, 02:15 PM
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#4
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Senior Member
Join Date: Mar 2013
Location: Planet Earth
Posts: 6,818
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Signs of the times. However, the days of generational inheritance are quickly fading. My father had a pension and SS from a fortune 500 company he worked at for 45 years - they also inherited over half a million. It's all gone from years of catastrophic health, assisted living, Alzheimer care and reverse mortgages.
Enjoy "the last generations" of the family bank while you can.... future generations have no promise of social security - and way to much confidence in the stock market / global economy - and a government that is hopelessly addicted to debt which future generations will dearly pay for.
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11-25-2013, 02:32 PM
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#5
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Senior Member
Join Date: May 2012
Location: Minnesota
Posts: 9,784
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I know a few of them. I in my family I am the financially responsible one. I borrowed a little from my parents when I was collage age. Actually they offered to pay for my used truck, but I had to pay them back and there was penalties if I was late on a payment. Now I have an older sibling that has been unemployed for a few years, who has zero income, drained all their retirement and still somehow pays their extremely large mortgage payment. I suspect the family bank is paying, but I am being kept out of the loop. I have had a chat with the family bank, not sure if they listened thou. Hopefully I am teaching my kid good financial manners. But my wife wanted to save, to pay for his full college expense, his future wedding, and a down payment on his first house. I said NO. shortly later with our financial planner, he told her the same thing and the reasons why not to, and how to teach him financial responsibilities. No my DW says no too.
It is one thing if an unexpected emergency happens and you need a loan for a few days maybe a month.
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11-25-2013, 03:07 PM
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#6
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Senior Member
Join Date: Aug 2013
Location: NC
Posts: 974
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This describes an imoral act: to give somoene something that they could get on thir own. It has the effect of making the giver feel elitist in nature and at the same time it kills the spirit of the reciever and forms an owner/slave relationship.
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No man has a good enough memory to be a successful liar. Abraham Lincoln
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11-25-2013, 07:54 PM
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#7
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Senior Member
Join Date: Dec 2010
Location: North Idaho/Arizona
Posts: 5,446
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Sallie and I are NOT the family bank. Both of our boys are doing well on their own. They can get the money when we are gone.
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Life in the slow lane is still life.
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11-25-2013, 08:12 PM
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#8
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Senior Member
Join Date: Sep 2010
Location: PNW
Posts: 5,195
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My sons are in their early 30's now, and there's no way I would deny them the learning experience of overcoming difficult financial circumstances on their own.
__________________
Bill
2011 Dodge Ram 1500 HEMI Quad Cab
2011 Jay Flight 26BH
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11-25-2013, 09:32 PM
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#9
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Senior Member
Join Date: Apr 2013
Location: White Rock, BC. Canada
Posts: 374
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I pay all my kids bills but then they are 10 and 12 so I'll cut them a little slack. Seriously my dad was always there for me when I was younger even though I never asked for help and I'll be there for my kids.
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]2013 Jay Feather X213
2003 Ford Expedition
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11-25-2013, 11:48 PM
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#10
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Senior Member
Join Date: Aug 2013
Location: Utah
Posts: 892
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My brother and I were told to get out at 18. We're both fine.
My step siblings were allowed to linger as long as they wanted. They're still in limbo in late 20s/early 30s. My parents are trying to wean them off the teat now, but they're trying to break very bad habits.
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11-26-2013, 11:30 AM
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#11
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Member
Join Date: Sep 2013
Location: Holiday, Fl
Posts: 70
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Quote:
Originally Posted by Doug
Yep,
Me and my wife saved and lived well below our means to put our children through college, retire at 55 and live comfortably.
Our children took minimal loans of about 3,000/year so they had some skin in the game.
After gaining employment and paying on them for 2 years, we paid off the balance.
I am not the family bank. My saving has already been allocated to supporting me until I die.
JMHO,
Doug
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I agree 100%
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