'Ramsey Show' Host Says 'All This Is A Horrible Idea' As Parents Risk $800K Retirement Nest Egg To Bail Out Divorcing Daughter With Under $50K Saved

A divorcement brought an unexpected fiscal world into absorption for 1 family.

Calling from Ann Arbor, Michigan, Mike told "The Ramsey Show" that his older sister is going done a divorcement and has 3 children, the oldest astir 3 years from starting college. He said she and her hubby had been surviving comfortably, with their children successful backstage schools, luxury vehicles, and regular vacations.

As the divorcement process unfolded, Mike said the numbers showed thing different. The mates had nether $50,000 successful savings, including status accounts. At the aforesaid time, his sister planned to bargain her hubby retired of some their location and her dental practice, a determination that would necessitate $800,000.

She could not suffice for a slope indebtedness due to the fact that she was already overleveraged, Mike said.

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Mike said his parents initially agreed to supply $400,000, and past decided to screen the full magnitude utilizing their status nest egg.

Before his parents finalized their decision, Mike said his sister asked whether helium and his hubby could lend her $400,000. He said that magnitude would necessitate selling 1 of their properties.

She aboriginal called backmost and said she had made different arrangements. Those arrangements turned retired to beryllium their parents, Mike said.

"All this is simply a horrible idea," co-host John Delony said.

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Mike said it remained unclear whether the $800,000 would beryllium treated arsenic a indebtedness oregon a gift. He said his parents besides wanted conditions attached, including repayment if his sister reconciled with her soon-to-be ex-husband.

"So we're going to fto her spell astir a cardinal dollars successful indebtedness to us. Awesome. Great plan," co-host Rachel Cruze said.

Mike said helium shared his concerns with his parents, and added that helium is the executor of their will. He wanted his parents, who lived frugally and paid for his and his siblings' assemblage education, to bask their status alternatively than usage it to prolong a manner that nary longer matched the numbers.

"Sometimes the top acquisition is to fto it each the mode unravel and beryllium with idiosyncratic successful the ash," Delony said.

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