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Borrow Money From Your Parents

19 posts
  1. Wahlin Scott B
    Wahlin Scott B avatar
    4/30/2012 5:04 PM
    Mitt Romney recommends that young people borrow money from their parents to get started. Really? I am sure there are those that can do it, but both of my ex-wives trusted their attorneys more than than they trusted the father of their children. I was wiped out twice and my ex's were not responsible with their money. I give my kids thousands every year (while their mothers give them zero), but I do not have the money to cover a college education or the starting of a business. What planet are you righties from anyway?

    http://www.youtube.com/watch?v=CIa4VdtKlO0&feature=player_embedded



  2. Jon Gansen
    Jon Gansen avatar
    1 posts
    4/30/2012 5:04 PM
    I see nothing wrong with taking responsibility for your children's education or bringing up the children to take responsibility for education. My father co-signed loans for me which was enough to make me want to do my best to pay them back and let him know that it was right to trust in me.



  3. Wahlin Scott B
    Wahlin Scott B avatar
    4/30/2012 6:04 PM
    Jon Gansen said: I see nothing wrong with taking responsibility for your children's education or bringing up the children to take responsibility for education. My father co-signed loans for me which was enough to make me want to do my best to pay them back and let him know that it was right to trust in me.


    I don't see anything wrong with that either, if you can do it. My two sons stayed with their mother even though the divorce judge said I could have custody of them. My two daughters wanted to come with me. After their mother cleaned out their college funds I told them all they could either get scholarships or join the military to pay for college. The boys joined the Army Infantry and the girls got scholarships. It would be wonderful if we all had ideal lives, but that is not reality.



  4. Jon Gansen
    Jon Gansen avatar
    1 posts
    4/30/2012 6:04 PM
    Scott Wahlin, CGCS said:
    Jon Gansen said: I see nothing wrong with taking responsibility for your children's education or bringing up the children to take responsibility for education. My father co-signed loans for me which was enough to make me want to do my best to pay them back and let him know that it was right to trust in me.


    I don't see anything wrong with that either, if you can do it. My two sons stayed with their mother even though the divorce judge said I could have custody of them. My two daughters wanted to come with me. After their mother cleaned out their college funds I told them all they could either get scholarships or join the military to pay for college. The boys joined the Army Infantry and the girls got scholarships. It would be wonderful if we all had ideal lives, but that is not reality.


    I did not mean anything negative toward you. Just did not see anything wrong with Romneys words. Your right it would be nice if we had ideal lives but we dont. But are experiences good, bad, horrible hopefully make us and the ones around us stronger and better for it.



  5. Dennis Cook
    Dennis Cook avatar
    1 posts
    5/1/2012 5:05 AM
    Scott, maybe he means look to your family before you look to govt? Wow what a concept!



  6. Keith Fellenstein
    Keith Fellenstein avatar
    0 posts
    5/1/2012 10:05 AM
    Better to borrow from your children, and your children's children, and your children's children's children...thanks Uncle Barry.



  7. Peter Bowman
    Peter Bowman avatar
    11 posts
    5/1/2012 5:05 PM
    Keith F.,

    Fabulous. I only wish I was smart enough to think of that. Does kind of keep it in the family that way, I suppose.



  8. Wahlin Scott B
    Wahlin Scott B avatar
    5/1/2012 5:05 PM
    Dick Cheney, "Reagan proved that deficits don't matter."



  9. Robert Crockett
    Robert Crockett avatar
    4 posts
    5/1/2012 7:05 PM
    Scott Wahlin, CGCS said: Dick Cheney, "Reagan proved that deficits don't matter."

    Dick Cheney was wrong...they do.....You as a person can have a deficit...it has a threshold called default. Which in turn can cause a Judgement of even worse Bankruptcy. It also can kill your credit rating and make your borrowing power one of extremely high interest and or lose the ability to borrow at all.



  10. Wahlin Scott B
    Wahlin Scott B avatar
    5/1/2012 8:05 PM
    Robert Crockett said:
    Scott Wahlin, CGCS said: Dick Cheney, "Reagan proved that deficits don't matter."

    Dick Cheney was wrong...they do.....You as a person can have a deficit...it has a threshold called default. Which in turn can cause a Judgement of even worse Bankruptcy. It also can kill your credit rating and make your borrowing power one of extremely high interest and or lose the ability to borrow at all.


    Who was the last president who had a surplus and what were the tax brackets for the rich?

    We have young guys on here who think they will never get old. We have old guys on here who got lucky, have theirs', think they actually deserve it and couldn't care less about their fellow citizens. And then we have the progressives.



  11. Dennis Cook
    Dennis Cook avatar
    1 posts
    5/2/2012 6:05 AM
    Scott Wahlin, CGCS said:
    Robert Crockett said:
    Scott Wahlin, CGCS said: Dick Cheney, "Reagan proved that deficits don't matter."

    Dick Cheney was wrong...they do.....You as a person can have a deficit...it has a threshold called default. Which in turn can cause a Judgement of even worse Bankruptcy. It also can kill your credit rating and make your borrowing power one of extremely high interest and or lose the ability to borrow at all.


    Who was the last president who had a surplus and what were the tax brackets for the rich?

    We have young guys on here who think they will never get old. We have old guys on here who got lucky, have theirs', think they actually deserve it and couldn't care less about their fellow citizens. And then we have the progressives.


    Scott, Clinton never had a surplus that is such a myth. The US treasury website states that each year under Clintons budget, that we still had a budget deficit. EVERY YEAR! So regardless of what the tax rates were for the rich, Clinton still could not balance the budget. In reality, Intra-govt holdings (which is when the govt borrows from itself, ie rob social security) went up every year under Clinton as well. He paid down public debt with that money to use the accounting trick that they were paying down debt, but in actuality the total national debt went up each year under Clinton and went up substantially during his last year in office and during his final budget which ended Oct of 2001. You cant borrow from social security and claim you have a surplus and during Clintons last two budgets he borrowed $448 billion from the fund. Your claim has no argument. He added to the national debt each year.

    The last true budget surplus where we actually paid down national debt was in 1956 and 1957 when we paid down $2 billion on the national debt each year. This was under Dwight D. Eisenhower (R)



  12. Melvin Waldron
    Melvin Waldron avatar
    43 posts
    5/2/2012 6:05 AM
    Dennis,

    You mean Newt (R) was lying on the campaign trail?

    Back in President Eisenhower time what was the tax rate then and what was the big public works project going on at the time also (public works is probably not the correct term to use), and what did he caution us about?

    Seems we aren't doing any of the three big things he did.

    Mel

    Melvin H. Waldron III, CGCS, Horton Smith Golf Course, City of Springfield/Greene County MO

  13. Wahlin Scott B
    Wahlin Scott B avatar
  14. McCallum David K
    McCallum David K avatar
    5/2/2012 6:05 AM
    Geeeeee and I thought all these many years I had a plan. Do I want to save 15% of my paycheck and put it in an IRA or my 401k? Do I want a new boat or maybe take that refund check from the governement and buy some stock? Do I really need to go to Europe on a vacation or payoff the credit card bill instead . I know now it was all LUCK! It's like the old saying "the harder I work, the luckier I get". And I thought I had a plan.........obviously not.



  15. Wahlin Scott B
    Wahlin Scott B avatar
    5/2/2012 7:05 AM
    That is not the point and you know it. I think you and I can agree that we have been blessed by God's grace, the one who in my opinion deserves all the credit.



  16. James Schmid
    James Schmid avatar
    1 posts
    5/2/2012 9:05 AM
    David McCallum said: Geeeeee and I thought all these many years I had a plan. Do I want to save 15% of my paycheck and put it in an IRA or my 401k? Do I want a new boat or maybe take that refund check from the governement and buy some stock? Do I really need to go to Europe on a vacation or payoff the credit card bill instead . I know now it was all LUCK! It's like the old saying "the harder I work, the luckier I get". And I thought I had a plan.........obviously not.



    David-

    I think that many older guys have worked hard and had good plans, and as such have put themselves in position to retire comfortably. The luck part goes like this - you're lucky that you don't live in Iraq or Afganistan, where you could have worked just as hard and had far less chance of success. OR... you were lucky to live in America during a time period during which growth was strong, and government programs were not falling apart around you.

    For example - I am 33 years old, I can work just as hard as you did, and plan - but 30 years from now, the chances, or probability (luck) is low that social security, medicare, etc. will pay me out the same percentage (based on what I put in) as they are paying to those who have already retired or about to retire.

    So when luck is defined as "good fortune which occurs beyond one's control" - You happened to live in the most economically successful nation ever, during it's most economically successful period ever, I would say theres some luck to that.



  17. Dennis Cook
    Dennis Cook avatar
    1 posts
    5/2/2012 9:05 AM
    Scott Wahlin, CGCS said: http://www.factcheck.org/2008/02/the-budget-and-deficit-under-clinton/


    Scott, i love how fact check notes at the end that they used a different accounting system than everyone else uses and that entitlements or future obligations are not counted in the equation. They also do not state how much they borrowed from social security either. All they state is that if social security is out of the picture there is a surplus. Of course, because the borrowing from there goes under intra govt holdings and not under public debt. But when you add the two together you get the national debt and the US treasury states that every year under clinton our national debt went up, ie no surplus. Accounting tricks dont work, unless you take the govt at its word.
    First column is year, then year ending, then national debt, then deficit (from the US treasury). These have the intra govt holdings (borrowing) figured in.

    FY1993 09/30/1993 $4.411488 trillion
    FY1994 09/30/1994 $4.692749 trillion $281.26 billion
    FY1995 09/29/1995 $4.973982 trillion $281.23 billion
    FY1996 09/30/1996 $5.224810 trillion $250.83 billion
    FY1997 09/30/1997 $5.413146 trillion $188.34 billion
    FY1998 09/30/1998 $5.526193 trillion $113.05 billion
    FY1999 09/30/1999 $5.656270 trillion $130.08 billion
    FY2000 09/29/2000 $5.674178 trillion $17.91 billion
    FY2001 09/28/2001 $5.807463 trillion $133.29 billion



  18. McCallum David K
    McCallum David K avatar
    5/2/2012 1:05 PM
    Both Scott and James make good points. For those that don;t know and I thought after years of battling politcal philosophy on here that Scott had a better grasp of my sarcasim. Wrong again, but only a few days ago I made a post saying my wife and I were fortunate (may have even used lucky but a bad term). We are not wealthy but have tried to plan for the future and I hope to work as long as my current employee will keep paying me the amount of money he is. When he does not I will find something else to do until time to draw upon what we have accumulated in life. We realize this good fortune and we do pick and choose but do try and give back. Our biggest benefactor is the woundedwarrior program.........those that gave more than many of us can ever dream of giving of self for honor and country........St. Jude and others like them......it's money well spent.

    James you are correct at 33 you do have an unsure future in front of you. I have a son a little older than yourself with two young daughters and some of my planning is around them as well. Continue to work hard and make smart monetary decisions in your life.......not all will be the right ones, but don't loose sight of the goal. I think November of this year will determine the future for many and perhaps a nation as well.

    But back to the original topic...............I never did borrow from my parents. Between working and the
    GI Bill and my wife working we made it happen. I believe those parents in a position to be able to afford to lend their children money should.........let them be the recipent of the 3.8% interest on a student loan.......it will teach their children the importance of repaying money borrowed, of being responsible, of standing for something. I can only speak from experience, had I borrowed 10k or so from my dad for college believe me it would have been repaid......maybe at cost or maybe with interest but repaid nonetheless.



  19. Wahlin Scott B
    Wahlin Scott B avatar
    5/2/2012 3:05 PM
    David, I caught the sarcasm about having a plan, but I did presume you were serious about following a plan. The intellect to develop the plan and the personal leadership to follow the plan are the blessings along with improved finances.

    I remember my parents saying they were not sure how my brother and I would make it. My father got a pension and health care for life for himself and my mother through GE. My dad was a middle manager and everyone at his plant got the same benefits.

    I received Pell Grants and student loans for college and took ten years to pay them off.



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