Ways to help family members in financial need include giving them money, making them loans, co-signing on loans and paying some of their bills. Although bringing money into a family relationship can be awkward, sometimes helping a family member financially is the right thing to do. However, as Investopedia warns, it is important to think through what help is feasible before making any offers.Continue Reading
Anyone giving money to a financially strapped family member should make it clear that the money is a gift so as to preserve the relationship. If gifts are large enough, they may qualify for the Internal Revenue Service's annual gift exclusion.
If a family member asks for a loan, the transaction should be handled in a businesslike manner. Loan terms should be written down and should include the amount of the loan, the interest rate, how and when repayment will be made, and what happens if the family member fails to make payments.
A family member who has a weak credit score may ask for help co-signing a loan. Anyone who agrees to this must realize he is personally responsible for the loan, should the family member fail to pay. The co-signer could find the loan has a negative effect on his own credit score.
Prepaying a family member's bills during a cash crunch can be a very effective way to help him out. The relief of knowing that a car payment or utility payment is taken care of can give that family member just enough time to work out his own situation.Learn more about Financial Planning
The rules for withdrawing money from a 403(b) tax-deferred retirement plan vary by plan, but some allow for a hardship withdrawal or loans, according to the Internal Revenue Service. Plans may also allow withdrawals when the employee reaches age 59 1/2, leaves the employer, develops a disability or dies.Full Answer >
A Roth IRA's main benefit is that it allows money to be taxed before it is invested, negating the need to pay tax on the money as it is withdrawn. In addition, the money invested into a Roth IRA can be withdrawn at any time without penalty, although withdrawal of the earnings on the investments before the age of 59 1/2 years incurs a penalty.Full Answer >
A traveler can save money on a lakeside cabin or other rental by being flexible with travel dates and traveling with friends and family members who may otherwise book separate hotel rooms, CNBC recommends. A traveler can save further by renting from the owner to avoid brokerage fees and by looking for last-minute specials, Kiplinger explains. A vacationer may avoid rent altogether by swapping homes, Today reveals.Full Answer >
BillFloat loans can be a convenient way to borrow money to pay monthly bills. Once approved and released, the funds from a BillFloat loan go directly to a biller. The borrower then typically has 30 days to repay the loan. Interest rates on these loans can be as high as 36 percent, according to SmartAsset.Full Answer >