This is a very interesting article which talks about how your relatives could end you up in a financial debacle.
It is not only your own intelligence and networking which will assure your financial stability but the health and education of your relatives as most of the time one who is stable ends up paying for others.
One analogy I can make to the current situation is the student loan problem. Many of the student loans have been co signed by parents, uncles or cousins and in today's job market where jobs are hard to find, a default by the applicant would mean that his co signer ends up paying for his debt.
I see this as a potential threat in near future to the stability of the economy as student loan default rate is increasing and such a circumstance could have a trickle down effect.
I like the idea of putting assets in LLCs to protect them. Some may think this is overkill, but I see it as protecting your future. With people feeling poorer now-a-day, they will do anything to get an extra buck, even if it is at the expense of ruining someone's life by sueing them for all they are worth.
ReplyDeleteI think this article is quite relevant to the times. With the economic burden originally being on parents or other stable family members when as your example states, the applicant defaults on a loan. In this time it is quite important to now evaluate the impact others will make one your own financial state. This is not to say I think that family members should be cold to one another, but more calculating in their financial decisions.
ReplyDeleteThis is a really nice article and very eye opening. I think that the guy first made a mistake by not having life insurance which, with a family is crazy. However, it makes you wonder what would happen if I died and how it would affect my family. WIth, like you said, student loans. But it also makes you think about how people need to be more responsible. What if his business would have failed? Things like that is what people need to account for.
ReplyDeleteThis article is very interesting and what I learn from reading this article is that you need to be careful in what you do/ sign and what you do with your money. You need to be smart about it. Only you who will have your own back.
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