Avoiding Awkward Family Money Situations: 3 Tips
May 3, 2012 By Deborah Sexton Law Office, PA
If you have spent your life providing for your family and making sure they are well cared for, the thought of having to ask your family for a loan can be incredibly difficult to bear. Surveys have shown that people fear becoming a financial burden far more than they do dying, at a rate of more than 5 to 1.
However, if you are in a situation where you do need to borrow money from family, or worry that you might one day have to, here are three tips you can use to help you deal with the situation.
Tip 1: Talk about finances early.
There is a large generational gap in many families when it comes to talking about money. For many older Americans, money simply isn't a topic that you bring up in polite conversation, much less discuss in detail with your family. However, by making it more acceptable to talk about money with your family, this may defuse any difficult discussions you need to have later on.
Tip 2: Your home is collateral.
If you own your home you can use this asset as collateral for obtaining a new mortgage or home equity line of credit. If you need the loan, you may want to consider this option before you go to family members. Consult a financial advisor before you do this, especially if you're on a fixed income.
Tip 3: Come out of retirement.
For a retired person, you may find that ending your retirement by finding new employment can be beneficial in many ways. Apart from the financial benefits, becoming more active and having additional responsibilities can help you feel better about yourself and your finances.
ABOUT THE AUTHOR: Deborah Sexton
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR.
Copyright Deborah Sexton Law Office, PA
More information about Deborah Sexton Law Office, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Tip 1: Talk about finances early.
There is a large generational gap in many families when it comes to talking about money. For many older Americans, money simply isn't a topic that you bring up in polite conversation, much less discuss in detail with your family. However, by making it more acceptable to talk about money with your family, this may defuse any difficult discussions you need to have later on.
Tip 2: Your home is collateral.
If you own your home you can use this asset as collateral for obtaining a new mortgage or home equity line of credit. If you need the loan, you may want to consider this option before you go to family members. Consult a financial advisor before you do this, especially if you're on a fixed income.
Tip 3: Come out of retirement.
For a retired person, you may find that ending your retirement by finding new employment can be beneficial in many ways. Apart from the financial benefits, becoming more active and having additional responsibilities can help you feel better about yourself and your finances.
ABOUT THE AUTHOR: Deborah Sexton
Experienced estate planning attorneys Fayetteville AR of the Deborah Sexton Law Office PA offers estate planning and business planning resources to residents of Fayetteville AR.
Copyright Deborah Sexton Law Office, PA
More information about Deborah Sexton Law Office, PA
View all articles published by Deborah Sexton Law Office, PA
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
