The Prodigal Son

Scott,

My son is 45 years old. He earns in excess of $200,000 but loves spending borrowed money. He has 10 per cent equity in his house, which is worth $1,000,000, and an apartment. He recently made an unconditional offer on a block for $750,000 on which he and his new girlfriend intend to build. The bank refused him a loan. He approached us (retired) and suggested we take out a $400,000 loan on our house, which he would pay back when he sells his existing house. I refused because I believe he needs to stop spending. What is your opinion?

Nella

Hi Nella,

I think 45-year-old men who are earning two hundred big ones shouldn’t be hitting up their retired parents for money. You made the right decision.

Scott