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I trust my family with credit

Established Contributor

I trust my family with credit

My dad has a FICO score of 848. My sister graduated from MIT and she makes 150K per year and has above 800 FICO score. I've added them as AU to help me meet sign-up bonus on Amex BCE. Everything they spent on it was paid off. My dad also gave me 15K because he trusts that I won't recklessly spend it on a fancy car. Right now, the money is earning interest in a high interest money market account. I will invest it in stocks when I've learned more about the stock market and when the time is right.

 

Seriously, this whole sub-forum is about bashing family and friends about being wolfy and selfish. If they have genetic impulse control and they love you enough to not scam you, why not trust them?


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


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Message 1 of 18
17 REPLIES
Valued Contributor

Re: I trust my family with credit

For stock investments you can't beat S&P 500 index and DJ 30 index.  Best thing to do is  buy index funds that mirror them. Vanguard has some great index funds.   

 

I beg to differ about trust and scams Dw and I have a nice living helping banks and government agencies  recover losses from  from scams and fraud. For enough money you woul be shocked what people have tried.   I once helped the bank "fiind" One hundred and fifty million dollars some one stole from mega bank  and then they claimed they "forgot" where they put it.  Yes I said one hundred fifty million dollars. Never made the paper or news.  Bank did not want the attention just their money back. 

Message 2 of 18
New Contributor

Re: I trust my family with credit


Subexistence wrote:

My dad has a FICO score of 848. My sister graduated from MIT and she makes 150K per year and has above 800 FICO score. I've added them as AU to help me meet sign-up bonus on Amex BCE. Everything they spent on it was paid off. My dad also gave me 15K because he trusts that I won't recklessly spend it on a fancy car. Right now, the money is earning interest in a high interest money market account. I will invest it in stocks when I've learned more about the stock market and when the time is right.

 

Seriously, this whole sub-forum is about bashing family and friends about being wolfy and selfish. If they have genetic impulse control and they love you enough to not scam you, why not trust them?


It's really easy to "trust family with credit" when they are the ones helping YOU out.  What you posted above references what THEY have done for YOU, not the other way around.  Unfortunately you hear more stories about folks taking advantage of others and sometimes hurting their credit or the relationship, rather than hearing all the great things like you mentioned above.  Trust me, if my parents gave me $15K (or even paid me back half of the money the owe me), I'd be singing their praises too.

Message 3 of 18
Contributor

Re: I trust my family with credit


Subexistence wrote:

My dad has a FICO score of 848. My sister graduated from MIT and she makes 150K per year and has above 800 FICO score. I've added them as AU to help me meet sign-up bonus on Amex BCE. Everything they spent on it was paid off. My dad also gave me 15K because he trusts that I won't recklessly spend it on a fancy car. Right now, the money is earning interest in a high interest money market account. I will invest it in stocks when I've learned more about the stock market and when the time is right.

 

Seriously, this whole sub-forum is about bashing family and friends about being wolfy and selfish. If they have genetic impulse control and they love you enough to not scam you, why not trust them?


Look into a three tier fund portfolio

 

https://www.bogleheads.org/wiki/Three-fund_portfolio

 

Personally I like Betterment (I like robo advisors, though some do not).  Betterment does not follow the three tier fund portfolio, just listing this as another option.



Equifax - 644
TransUnion - 641
Experian - 639
Message 4 of 18
Established Contributor

Re: I trust my family with credit


Backwoods wrote:

For stock investments you can't beat S&P 500 index and DJ 30 index.  Best thing to do is  buy index funds that mirror them. Vanguard has some great index funds.   

 

I beg to differ about trust and scams Dw and I have a nice living helping banks and government agencies  recover losses from  from scams and fraud. For enough money you woul be shocked what people have tried.   I once helped the bank "fiind" One hundred and fifty million dollars some one stole from mega bank  and then they claimed they "forgot" where they put it.  Yes I said one hundred fifty million dollars. Never made the paper or news.  Bank did not want the attention just their money back. 


That amount is mind boggling!! I thought you ment 150K That has to be an interesting business to be in(like Dallas meets Person of Interest).

Message 5 of 18
Valued Contributor

Re: I trust my family with credit

Trust no one is my philosophy. 

Message 6 of 18
Valued Contributor

Re: I trust my family with credit


tydawg wrote:

Trust no one is my philosophy. 


Trust but verify is mine.

 

I've borrowed money from family and friends, but always with a written agreement, interest (nominal), and even late fees specified (which I've never had to pay because I don't pay late, but which still said, "This loan is on serious terms and the lender has recourse if I don't perform").

 

If I had money to loan, I'd loan it on similar terms to family or friends. But only if the borrowers had a track record for reliability and good communication in all things.

 

OP, it's great that your family is smart with money. Too many aren't, and too many people raised in unreliable families feel obligated to help relatives because they feel guilt, hope, or desire to avoid conflict. (It's interesting how often people who are dishonest or flaky with money are also masters of the manipulative guilt trip.)

 

I'm glad your family can trust you with money and that you would trust them. Too bad every family isn't like that. There's good reason for all the bashing you see.

Message 7 of 18
Established Contributor

Re: I trust my family with credit


Backwoods wrote:

For stock investments you can't beat S&P 500 index and DJ 30 index.  Best thing to do is  buy index funds that mirror them. Vanguard has some great index funds.   

 

I beg to differ about trust and scams Dw and I have a nice living helping banks and government agencies  recover losses from  from scams and fraud. For enough money you woul be shocked what people have tried.   I once helped the bank "fiind" One hundred and fifty million dollars some one stole from mega bank  and then they claimed they "forgot" where they put it.  Yes I said one hundred fifty million dollars. Never made the paper or news.  Bank did not want the attention just their money back. 


I'll look into those indexes. 

 

I don't understand your second paragraph.


Starting Score: Ex08-732,Eq08-713,Tu08-717
Current Score:Ex08-765,Eq08-749,Tu08-741
Goal Score: Ex08-760,Eq08-760,Tu08-760


Take the myFICO Fitness Challenge
Message 8 of 18
Valued Contributor

Re: I trust my family with credit


Blackswizz750 wrote:

Backwoods wrote:

For stock investments you can't beat S&P 500 index and DJ 30 index.  Best thing to do is  buy index funds that mirror them. Vanguard has some great index funds.   

 

I beg to differ about trust and scams Dw and I have a nice living helping banks and government agencies  recover losses from  from scams and fraud. For enough money you woul be shocked what people have tried.   I once helped the bank "fiind" One hundred and fifty million dollars some one stole from mega bank  and then they claimed they "forgot" where they put it.  Yes I said one hundred fifty million dollars. Never made the paper or news.  Bank did not want the attention just their money back. 


That amount is mind boggling!! I thought you ment 150K That has to be an interesting business to be in(like Dallas meets Person of Interest).

Yes, Blackswizz  It was amazing they stole it. The bank noticed it when 24 hours and within the next 12 contacted us.  Financial crimes are pretty bold. Something I learned a long time ago once steal enough for a felony depends on state but around $10,000 the penalty is about the same whether its $10,000 or $150,000,000.  Once you don't get caught you try again.  Side story :  A former associate I worked with alot  had a run a of bad luck he stole $20,000 to pay medical bills when (he used to be on the good side) When he saw how easy it was he started stealing every month.  Finally he got in so deep  it was not funny and actually killed somebody when they found out and tried to blackmail him . He finally ended up with life in prison no pardon or parole.  Uptil then he was regarded in the good guy side of financial fraud.  
Message 9 of 18
Valued Contributor

Re: I trust my family with credit


Subexistence wrote:

Backwoods wrote:

For stock investments you can't beat S&P 500 index and DJ 30 index.  Best thing to do is  buy index funds that mirror them. Vanguard has some great index funds.   

 

I beg to differ about trust and scams Dw and I have a nice living helping banks and government agencies  recover losses from  from scams and fraud. For enough money you woul be shocked what people have tried.   I once helped the bank "fiind" One hundred and fifty million dollars some one stole from mega bank  and then they claimed they "forgot" where they put it.  Yes I said one hundred fifty million dollars. Never made the paper or news.  Bank did not want the attention just their money back. 


I'll look into those indexes. 

 

I don't understand your second paragraph.

Simply put many people will do fraud if 1) they think they can away with it 2) It worth their time.  For some worth their time may just be $1,000 for others $1 million dollars.  Many are inthe $150,000 range. 
Message 10 of 18