One of the questions many clients have for their advisors is how to handle a request that they cosign on a loan or guarantee a lease or other similar transaction. Most often, these questions arise in the context of family relationships where the client is asked for assistance by a younger family member who has more limited resources and experience. In fact, parents often agree to cosign for their children in order to facilitate the purchase of an automobile, rental of an apartment or residence, obtaining a college loan or perhaps even starting a business. These are all normal enterprises and worthy of consideration but parents or other persons asked to act as cosignors or guarantors should think hard and long before making that commitment.
My overriding principle is that, “Money Shouldn’t Hurt”, and if I can help just one person have a better experience with investing, then that makes it all worthwhile. -Tom Wright