Would you loan your entire IRA to your grandchild to build a house?

This is a truly bad idea on many levels. For example, while there are many programs to help people buy homes, especially if this is a first-time homeowner-to-be, you cannot borrow money for your retirement needs. In addition, there is a potential threat to the relationship if the grandchild cannot repay the money, even if the grandparent is willing to let it go, simply because the grandchild may start feeling guilty, and then as a result, resentful.

The only time this could potentially be a good idea is if all the following apply: 1. The grandmother does not need the money to ever be repaid for her to be able to continue with her chosen retirement life-style and/or medical needs. 2.

There is an agreement in place to provide for any other children and/or grandchildren in the grandmother's will, such that if the loan is not repaid, it is counted as money left to that granddaughter. 3. The granddaughter is financially trustworthy, and a written agreement is made whereby the repayment is made on terms that provide lower interest to the granddaughter than she would be able to secure from a bank, and provides more income for the grandmother than she would be able to get from her investments.

Disclaimer: the above is intended for informational purposes only. A financial professional should be consulted before making significant financial decisions.

Oh, please, please, people, don't do things like this. Even in the closest family, money problems can really destroy relationships. Not to mention the fact that your neighbor will need that money.

I hope her granddaughter is honest and caring and returns the money. In addition, the housing market continues to be unstable, as does the job market. What will happen if the granddaughter loses her job?

What if she has to sell the house? A retired lady I know put a lot of her own money into a house she shared with her brother and his family. After family relationships deteriorated, she had to move into a retirement home to get a little peace--and lost the money she had put into the house, because there was no written agreement.

If you love your family, and want to help, put the terms of the loan in writing. It will protect everyone.

First you don't know the family relationship and where are her Parents, is she just ripping off Grandma.

I've learned the hard way through past experience that by borrowing or lending money within families, usually causes trouble, one way or another. There has to be another way for her to get the money for the house. If your neighbor doesn't get the money back, they might in the end not have enough money to live in.

That wouldn't be right at all. The best thing is not to loan money to family that you expect to get back.

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.