Should I continue investing in a family business?

[pauline5765]

I have invested for a year on our family loaning business that guaranteed my capital to increase 94% annually. From 25,000 I was able to grow my assets to roughly 50,000 in a year.

However, due to my parents' irresponsibility, they incurred a 50,000 debt and I was forced to pay it for them, because they got the money from my grandmother's health fund. I love my grandmother so much and I know she needs the money for her health. So, I had to shoulder the 50,000 debt.

My mother is a toxic woman - so I avoid to talk to her at all cost. She's intelligent academically, but also have very poor financial skills. She has money today, then tomorrow it's gone. My father is pretty much a potato couch. So they are people who I cannot depend on (heck, i worked my way into college).

At a young age of 22, I had this 50,000 debt because of my parents and it has discouraged me to invest in the loaning family business. I liked the returns because my money is doubled every year (on compounded interest too). But I worry that everytime something happens to our family, they would automatically depend on me because they are aware I have money.

I'm a young professional and I'm looking forward to build a small fortune for my future. Do you think it's still worth it investing in our family business? Or should I find somewhere else to invest, without giving any knowledge to my relatives?

Thank you, I'm a little desperate for advice.

[rennigade]

Your mother is a toxic woman and you come here asking if you should keep investing in a family business thats going further in the hole?

I think you already know the answer to this. Consider that "investment" you gave them a lesson learned. You got off cheap. You're still really young that it wont have much of an impact later in life.

[disneysteve]

From 25,000 I was able to grow my assets to roughly 50,000 in a year.

However, due to my parents' irresponsibility, they incurred a 50,000 debt and I was forced to pay it for them

So far, you've invested $25,000 and ended up $50,000 in debt as a result. Do you really need to ask if you should continue doing this?

[Weird Tolkienish Figure]

So far, you've invested $25,000 and ended up $50,000 in debt as a result. Do you really need to ask if you should continue doing this?

I really wish I could like posts here, hehe.

[bjl584]

You stated that you started with $25,000 and ended with $50,000 in debt.

But somehow you are convinced that your money is going to double if you keep investing.

I think history has shown you exactly what will happen if you keep investing. Be smart and stop investing in the family business.

[JohnM.Hendricks]

i think you Should continue investing in your family business. it is giving you very good returns so why are you trying to leave it.
you Should continue investing in your family business and you can invest your money in other business as well.
you can choose to invest in like:
1. Real Estate
2. Art, Antiques, and Collectibles
3. Gold and Silver
4. Investing in a Small Business

[WillieGearhart]

I think this will not be the case every time.At least you can take one chance because according to your post it seems get you are in a profit if you are investing your money in family business. If, next time something happens like that then stop at that point but don't take this step now.

[JamesJLee]

Well if you think that you possess that management skills that you parents lack then you should invest it in the same business. Try and build you own company's name rather than investing it in any other company.

[JanKlein]

This is upto you because you better understand the ground reallity and facts.

[workinabroad]

It seems like you did great the first time around. If they make that amount of debt again just refuse to pay it. Then they will learn their lesson. Of course hopefully by then you'll have made your own company with the same working structure, because I'm sure they won't want to let you invest anymore.

[Petunia 100]

What sort of loans double your money in a year? Is your family business loan sharking?

Your Grandma should see to it that your parents do not have any access to her funds.

[Julie567]

Should I continue investing in a family business?

That's too sad to listen that you debt $50000, but what i feel, you should keep investing money to your family business or you must find other small side business without giving knowledge, as you said that your family suddenly depends on you, if you leave them your family business will destroy and your family has been running this so long.
There is one more suggestion try to handle your family business by your own ways. Technical or logical ways more then that you can use strategy of 360 feedback.
I hope this will help you to get productive result and benefits.