He Made His Son Use His College Fund To Pay Him Back For A Bad Investment

carballo - - illustrative purposes only, not the actual person

Two years ago, this man’s son approached him with an investment plan that he swore was absolutely infallible.

He listened to his son’s proposal before pointing out that it was actually a terrible idea. His son insisted that since there was a ton of money in his college fund, he was entitled to use the money however he wanted, even if his planned investment wasn’t wise.

His son had recently graduated from high school back then and was not planning to enroll in college.

“If we had taken money out and he wasn’t in school, there was a pretty big tax hit,” he explained. “I told him that I would loan him the money but that if his investment didn’t pay off, then he had to pay me back from his education fund.”

“I figured it was safe since he can’t get the money unless he is in school. We wrote up a contract for the loan, including nominal interest. His foolproof investment went poof. He got a job.”

“It turns out that working for a living is harder than school. It’s been two years, and he is going to community college this fall. He managed to save up exactly zero dollars from two years of work. He did have a string of girlfriends and a few vacations, though.”

He recently reminded his son that he has to pay him back out of his college fund for his bad investment before the money in the account is gone.

His son got angry with him, as he insisted he was taking money earmarked for him to get an education.

He then questioned his son about how much money would be left in the account if he had permitted him to use it all on that awful investment.

carballo – – illustrative purposes only, not the actual person

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