►n <)1"> f 816-Lancaster Farming, Saturday, February 21, 1998 \ Taking Time Patricia Powiey When Friends or Family Ask for Money How do you respond to a friend or relative who asks to borrow money or asks you to co sign a loan? Lending money is a business transaction with finan cial risks Lending money to family and friends, in addition to being a business traction, is a personal transaction and affects relationships that are very important to you. At its best, lending money to a friend or rel ative is a way to help someone you love. At its worst, lending money to a friend or relative destroys a meaningful relation ship Before lending money to a friend or relative, consider the entire situation - your situation and the situation of the person asking for money. Will the money solve the problem of the person asking for help? How will giving financial assistance affect your present and future financial situation. Is money the problem or the symptom? When a person asks for a loan, he or she thinks money will solve his/her problem. And, sometimes it does. For example, when a person has had unex pected expenses or reductions in income, your loan helps that person through the temporary crisis You may even prefer to make a gift rather than a loan However, money may not be the problem, but rather the symptom of the problem Lack of money may be caused by chronically living beyond one's means When spending continually exceeds income, the only solu tions are to increase income or decrease expenses. Life changes are necessary to increase income and/or decrease expenses. Money problems also may be caused by drug, alcohol, and/or gambling addictions. If the money problem is a symptom of one of these, your loan, rather than solving the problem, allows this person to continue to ignore or deny the real problem Some clues that money is a symptom of other problems are: • The person has borrowed from you or other friends and family members before and not repaid as promised. • The person asking for money is vague as to why he/she needs the money • The person doesn't want you to tell other friends or fami ly member he/she has asked for a loan, Can you afford to make a loan? Before lending money, look at your financial situation. What large expenses will you have in the future 9 What changes might you experience in income? Can you really afford this loan? Saying no may be difficult, but not saying no may be even more difficult If you do make a loan, what are your expectations for when / and how the loan will be repaid? Be clear about the expectations of both the lender and the bor rower. Put expectations in writ ing. Be sure the loan document includes the amount of money you are lending; the interest rate, if any; the date by which the loan must be repaid; and description of any collateral. You may want to purchase a form called a "promissory note" at a stationery or business sup- NEW BLOOMFIELD (Perry Co) - Retirement, health con cerns, excess debt, a desire for more free time. All of these are reasons why dairy producers decide to leave the business. Wether you are retiring and selling cows, machinery and real estate, or just moving from dairy to another agricultural enter prise, planning is the key. Proper planning may help avoid needless legal problems, excess income and capital gains taxes. Planning will also help ensure the proper paperwork for Social Security and Medicare benefits. "Exiting the Dairy Industry in an Orderly Manner" is a pro gram designed to help plan. Everyone now in the dairy industry will leave at one time or another ply store. If there is collateral and/or if the loan is large, you may want an attorney to pre pare or review the lending agreement to protect you in the event of nonrepayment and/or bankruptcy, divorce, or death of the borrower. It's your choice. When a friend or relative asks you for financial assis tance, it's your choice. Think through the situation - both the financial and the emotional aspects, what will the loan do for your own and the borrower's financial situations? How will giving or not giving financial help make you feel about your self and about your relationship with the person seeking help? How might making or not mak ing the loan affect your relation ship with other family members or close friends? Remember, it's your money and your choice. Extension Program Eases Leaving The Dairy Business If you are thinking about Sciences' Farm Management leaving the dairy industry in the department will review tax next five years, this program is implications of selling the farm, for you. and/or cows, and how to proceed The two day program will be to minimize the tax liabilities, held on Monday, March 9 and saving as much of assets as pos- Monday March 16, at the sible. Walker Grange Hall, Mexico The program will also feature (Juniata County), located 1.5 a presentation by a Social miles off the Port Royal exit of Security field officer dealing 322 with Social Security and The program will feature a Medicare benefits for those who panel discussion by several are . or Uose to the age of dairymen who recently left the retirement, business. They will be dis- 1116 registration fee for the cussing what advice you need to program is $2O for the first per seek when making the transi- son from a farm, $l5 for each tion from dairy production. additional person. The fee cov- The program will also feature ers l unc h for both days of the John Becker, a lawyer from workshop as well as educational Penn State's College of materials. The program will run Agricultural Sciences, who will roia 10:30 am - to 2:30 p.m be reviewing the types of legal eac " -v -advice needed and where to get Eor further information quality advice pertaining to and/or registration, call the agricultural and estate issues. Perry County Cooperative The second day, Larry Extension Office at (717)582- Jenkins, professor with Penn exb Registration State' College of Agricultural deadline is March 3. Foundry Day Arts And Crafts BOILING SPRINGS (Cum- „ "Foundry Day" theme is'The berland Co) - The historic vil- Roaring 20 s . There will be a lage of Boiling Springs, talking tour of the village Cumberland County, will cele- Exhibitors and townspeople are brate the 12th annual "Foundry encouraged to dress in period Day" Arts and Crafts Festival on costume of the 19205. Saturday, June 6, from 9 a.m. to S P ecial featur f s m f ,ud ® an 4 p.m. The festival will feature anl ; 1( l ue fL many talented members of the Unlimited Exhibit, and the Bird Pennsylvania Guild of Rfhabihtators of Dillsburg Craftsmen as well as some of the Children s activities, trout fish most creative professional in %’ and flshm S wlll be artists and crafts people from ottered. throughout Pennsylvania and Boiling Springs is easily near-by states. Line up on Front accessible between the mam Street, along picturesque highways which includes 1-81 Children's Lake and Third ‘ and R° ute 15 - The w Street, 100 booths will be filled located on Route 174, 15 miles with the best crafts and fine arts southwest of Harrisburg, 5 miles their creators have to offer. southeast of Carlisle and 15 miles northeast of Gettysburg 3c ' Agriculture - Residential - Commercial Invest in Concrete/Qual CALL FOR FREE ESTIMATES CONTACT AND SEE HOW AFFORDABLE ROY SBNSENIG CONCRETE WALLS CAN BE 717-3SS-0726 Authorized Dealer For Ke IP) |Sa I) Q E CONCRETE IT ini E IE walls, me. V { iroved Manure Storai SCSAi 531 Hollander Rd,, New Holland, PAJ#SS7 For All 5 Your Concrete \ Walls And \ Construction Needs { ie Facilit’ WnfkThatWflK stone Concrete Products mm - m
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