Q: My youngest son wants to borrow $5,000 to start his own
business. My wife is afraid to tell him no. She thinks we should
just give him the funds and not expect anything in return. I
disagree. He doesnt have a very nice track record with money,
so I am a little worried that my investment will be lost. Should
I loan him the money and hope for the best or just tell him no
and hope he doesnt get too upset?

A: The first thing you positive need to do, Jeff, is determine if this money
would be offered to your son in the form of a gift, loan or investment.
The very wording of your question tells me that you have not yet
made that all-important distinction.

It sounds like your wife wants to build a gift of the funds , expecting
nothing in return but the undying love of her last born son.

You, on the other hand, dont understand if you should offer the money
as a loan (should I loan him the funds ) or as an investment (worried
that my investment will be lost).

Until you might build that distinction, your funds should remain in
the bank.

I have a very simple rule when it comes to loaning money to relatives:
NEVER, EVER loan money to anyone you might have to sit next to
at Thanksgiving dinner.

"Son, pass me that dressing and tell everyone the story of how
you blew your old dads retirement money