what do you predict for my sister?
This really is about my sister, not me in disguise, we are money polar opposites. I just woke up to the thought that I would be supporting her eventually. I'm 44 BTW.
Story: 43 years old, college educated, she and (now ex) husband operate a small business on the west coast. Has bought two houses at about 1 million each, at the height of the market both times, net zero on the first sale and is unable to meet her mortgage on her current home. So, no net home equity. No net business equity as buildings and most equipment leased. I seriously doubt any tax-deferred retirement accounts. So I would guess her net worth is negative.
And she's 43! Yikes! I mean, is she on course to be a bag lady? Can you recover from zero net worth at 43, without magically lucking into some big-time job with lush benefits?
It was learning about the current house situation last week that brought the issue to my mind. I am sweating this long term because I am a frugal accumulator and working on staying healthy so I can have my (deferred) fun in semi-retirement, and I am really not inclined to share my probably quite comfortable future lifestyle with her. At least thinking about it right now, I'm not. I'll stand her to a small apartment or something, but she has been having the good times on her cash flow for the past 20 years, it's now or later and she picked now. Does that sound horrible?
Anyone else in this situation or already in the future situation of supporting a spendthrift sib?