FINANCIAL STRAIN, FAMILY FALLOUT The Risks of Lending to Adult Children
In a perfect world, your golden years are a time of comfort and financial security. You’ve saved for decades, paid off your mortgage, and planned out years’ worth of travel and relaxation. You should be all set at this stage in life, right? If you have adult children, you may find yourself dipping into your nest egg to help them out of a sticky financial situation. Here are three things to consider if they come to you for a loan. Get real about your risk. Before agreeing to help your adult child overcome their financial troubles, assess the situation critically. Are you in a position to help without putting yourself at risk? Is their predicament the result of an illness, an injury, or another unplanned circumstance? Did their lifestyle or spending choices cause the problem? Have they asked you for money before? Would you approve them for a loan if you were an actual lender and not a parent? Are you prepared to never see that money again? We all want to help our children, but perhaps the best way would be to refuse to add fuel to a wildfire. They may be better off in bankruptcy court than relying on the Bank of Mom and Dad.
Set boundaries and limitations. If you decide to proceed with the loan, draw up documentation explaining its terms and conditions. Details could include the interest rate (if any), the amount and frequency of repayments, and rules for late payments or defaults. Incorporating these formalities into a family matter may feel awkward. Still, it may be a necessary step in protecting both parties from even more uncomfortable scenarios if they don’t pay off the loan. Minimize lump-sum struggles. Not everyone is skilled or disciplined in money management, and a lump-sum payment may not be ideal for someone with a history of impulsive spending. Instead of giving them the full loan amount upfront, consider structuring it in smaller increments over time or
paying their billers directly. That way, you have more control over how your loan is spent and can better ensure your money goes responsibly toward what is intended.
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INGREDIENTS
TAKE A BREAK!
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6 tbsp unsalted butter 3 garlic cloves, smashed 3/4 cup buttery crackers (such as Ritz), crushed
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1/8 tsp cayenne pepper
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2 tbsp heavy cream 1 tbsp Dijon mustard
3/4 cup panko
1 tbsp olive oil
2 tsp minced fresh thyme
1 (3-lb) skin-on salmon fillet (1 1/4-inches thick)
2 tsp lemon zest
1 tsp each black pepper and salt, divided
DIRECTIONS 1. Preheat oven to 425 F. 2. Melt butter in a small saucepan over medium-low heat. Add garlic and cook for 4–5 minutes, stirring occasionally. 3. In a medium bowl, stir together crackers, panko, thyme, lemon zest, black pepper, salt, and cayenne. Add melted garlic butter and combine. Set aside. 4. In a small bowl, stir together cream and mustard; set aside. Drizzle oil in a heatproof baking dish and place fish, skin side down, in the center. Sprinkle with pepper and salt. Brush fish evenly with cream mixture. Top fish with cracker mixture, gently pressing into fish. 5. Bake for 5 minutes, then reduce temperature to 400 F. Bake until crumbs turn golden brown, 15–18 minutes. Remove from oven and let rest 5 minutes before serving.
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