Tuesday, August 25, 2015

Fwd: FiveCentNickel: "8 questions to ask before lending money to friends"


fivecentnickel.com

FiveCentNickel: "8 questions to ask before lending money to friends"

Link to fivecentnickel.com

8 questions to ask before lending money to friends

Posted: 25 Aug 2015 01:00 AM PDT

It's one of the most awkward questions a friend can ask you: "Will you lend me some money?" Awkward for your friend to have to ask, and awkward for you to have to answer. Saying "no" could adversely affect your friendship. However, saying "yes" could also put a strain on your friendship, and your finances.

If you get asked that awkward question, you should follow up with eight questions of your own before you decide whether or not to lend a friend money.

1. Why does your friend need the money?

Sometimes, there is a clear, one-time need for which a timely loan can get your friend through a particular situation — for example, Bob has found the perfect house but is a couple thousand short on the down payment, or Jane's son needs dental surgery. Situations which are out of the ordinary and are not likely to recur at least suggest that a loan might be a one-time thing.

Unfortunately, more often when people turn to their friends for financial help, it is because of long-standing money problems. In that case, your loan is likely to be nothing more than a temporary stop-gap, leaving your friend with the same set of problems in a few months, and you with little chance of being repaid.

2. What other debts does your friend have?

If a friend comes to you for money, it may well be because he or she has exhausted all other sources of borrowing — meaning that the credit cards are maxed out, and possibly mortgage, car, or student loan payments are coming due.

If your friend owes money to credit card companies or lenders, you are probably going to have to stand in line behind them before any money you lend gets repaid — which significantly reduces your chances of seeing that money any time soon.

3. Is this an amount you can afford to lose?

Institutional lenders use a variety of techniques to assess loan risks, and they make thousands of loans. So the cost of the occasional bad loan can be absorbed by the money they make from interest on good loans.

You have neither those underwriting tools at your disposal, nor the opportunity to broadly diversify your lending risk. This makes a one-off type of loan especially risky, and you should not lend more in that situation than you could afford to lose.

4. How formal should the arrangement be?

This loan may be an understanding between friends, but that doesn't mean you shouldn't formalize it with a signed, written agreement. Aside from protecting your financial interests, it can be important to the friendship to document your understanding in a way that ensures you both remember things the same way after some time has passed.

5. Should you charge interest?

Remember, there is an inflation cost and possibly an opportunity cost to tying up your money. Charging interest need not mean profiting at your friend's expense. It can simply be a way of recouping the cost of having the money unavailable for a while.

One argument in favor of formalizing the arrangement and charging interest is that, if you don't, the IRS may deem it a gift rather than a loan. If there is a large amount of money involved (the exemption limit is $14,000 for the 2015 tax year), this may mean having to pay gift tax — and the giver rather than the recipient is on the hook for gift taxes, so this could come out of your pocket.

6. What is the repayment schedule?

Part of the formal arrangement should be a repayment schedule. That way you both know what to expect about repayment terms.

7. Has your friend budgeted for repayment?

Another benefit of a repayment schedule is that it can serve as a reality check. Once you have a repayment schedule worked out, it is fair to ask your friend how he or she intends to find the money for those payments — especially if that friend has been having financial problems already.

8. Which will affect your friendship more: saying no or saying yes?

It might seem to be the path of least resistance to say yes, but saying no means you can both quickly put the incident behind you. On the other hand, a burdensome loan could prove to be an ongoing strain on the relationship for years to come.

Consider the alternatives

If the analytical approach described above seems too hard-headed, consider an alternative besides saying yes or no to a loan: simply giving your friend the money. If your friendship is close enough that you really want to help, giving rather than lending money allows you both to move forward with no strings attached.

On the other hand, if simply giving the money away is not something you can afford, you should think very analytically about lending the money. If things go wrong, a bad loan to a friend could cost you both the money and the friendship.










   


Thursday, July 30, 2015

Fwd: Notify NYC - NYS Missing Vulnerable Adult

Alert issued 7/30/15 at 12:30 AM. The NYS Division of Criminal Justice Services has issued a Missing Vulnerable Adult Alert for Bertha Moore-Ladd, a 66-year old black female from Mount Vernon, New York. Ms. Moore-Ladd is described as 5'03" and 135 lbs, with black hair and brown eyes. She suffers from Alzheimer's and may be in need of medical attention. She was last seen near Gramaton Avenue at approximately 5:00 PM on 7/29. Ms. Moore-Ladd is believed to be traveling by foot A photo of the missing is available at http://i.imgur.com/9My4TXr.png. If you see Bertha Moore-Ladd, please call Mount Vernon City Police Department at (914) 665-2500 or call 9-1-1.




The sender provided the following contact information.
Sender's Name: Notify NYC
Sender's Email: notifynyc@oem.nyc.gov
Sender's Contact Phone: (212) 639-9675



Saturday, July 25, 2015

Fwd: Health Department Advises New Yorkers to Avoid Certain Ayurvedic Medications Found to Contain Elevated Levels of Arsenic, Lead, and Mercury

The New York City                                            Department of Health and                                            Mental Hygiene
Health E-News July 24, 2015

Health Department Advises New Yorkers to Avoid Certain Ayurvedic Medications Found to Contain Elevated Levels of Arsenic, Lead, and Mercury

The heavy metal content in many of these medications greatly exceeded acceptable limits

The New York City Health Department advises New Yorkers to avoid certain Ayurvedic medications made in India by Shree Baidyanath as they have been found to contain elevated levels of arsenic, lead, and mercury. The levels of heavy metals found in these medications manufactured exceed the limits for arsenic (3 ppm), lead (2 ppm), and/or mercury (1 ppm) for certain food additives as referenced by the Food and Nutrition Board, Institute of Medicine of the National Academies.

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Monday, July 20, 2015

Fwd: Find Your Ancestors and Build Your Family Tree


Find Your Ancestors and Build Your Family Tree

Historical and government records can help you trace your heritage and build your family tree. Perhaps you're interested in knowing more about your ancestors, or in finding burial locations of veterans. 

Visit our Genealogy and Family History page for resources from your state, U.S. Census, National Archives, Ellis Island Foundation and more to help with your research.



 


Fwd: Block party!

Our Wednesday night Uptown Bounce block party series with El Museo del Barrio begins this week!
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Uptown Bounce
Wednesdays, July 22 & 29, August 5 & 12 from 6:00–9:00 pm


As featured in this week's New York Times, the City Museum and El Museo del Barrio kick off our second annual joint summer series Wednesday. Enjoy live music, dancing, gallery talks, art workshops, summer drinks, and local food. Free and open to visitors of all ages; advanced registration required!
Register Now

Wednesday's Opening Night Schedule

6:00–9:00 pm, FREE!

  • Operator EMZ & DJ Joey Carvello of Mobile Mondays! spin classic disco vinyl '45s
  • Conga player Gabriel Tomasini keeps the beat
  • Chalk art on the sidewalk by artist Kady Perry

6:30 pm

  • Learn the New Style Hustle with dance maestro Jeff Selby
  • Tour Hip-Hop Revolution with Curator Sean Corcoran

7:30 pm

8:00 pm

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