February 03, 2009

Change of fortune

There is a couple, retired teachers and without children. There were quite well-off and lived in a private house. Not too long ago, they lent their savings to a trusted relative to do or to start a business. They even mortgaged their house to raise the money.

I do not know if the relative promised them good returns or any other thing. The business failed and the bank took over the house. The couple now live in a rented HDB flat.

One fortunate thing for the couple though - they are pensioners. They did not convert from the Pension scheme to the CPF scheme when they were given the opportunity to do so. So now they are getting monthly pensions from the Government. Not much I think but at least they don't have to worry about three meals unless the Government goes bankrupt.

But it is quite a big change for them - from a big house to a small one, from spending freely to counting every dollar, from taking taxis to taking buses ..... And it happened when they thought they could take things easy in their golden years. Sad, right?

I think you must keep some money yourself. Unless there are exceptional circumstances, do not lent all your money away.


Unknown said...

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Victor said...

They say "neither a lender nor borrower be". I have my own maxim - if you lend someone your money, be prepared not to get it back.

Many years ago, a friend wanted to borrow some money from my wife who asked me for advice. I told her my maxim. True enough, my wife never got to see her money again.

Anonymous said...

M.Kate - Happy New Year to you too. No, I don't mind.

Victor, I agree with you. I never got back most the the money I lent out. Haha, not that I lent out a lot of money or that I have a lot of money to lend out.

Kongming said...

ya, i always prepare to write off e amount i lend out also..
hm... my close friends better dont see this... else all become liu bei

Anonymous said...

fr, i have 2 experiences. one took 3k from me and apparently seem to have forgotten about the loan. he now drives a newer and bigger car than i. another i lent 20k - to help save her marriage - and she has been putting money into my account regularly as payment although i don't see or meet her any more.

Anonymous said...

md and yg, both of you very kind ubledand generous

Victor said...

Yg, you seem to be a very easy and trusting lender. 20K is no small beer. There is no dearth of so-called "friends" waiting to take advantage of you.

Shall we discuss this matter further over lunch?

Anonymous said...

victor, that was when i was still employed. these days, i have to look for lenders.