The Wealthy Family

I believe that I will begin a new line of thinking, or perhaps just a different twist on the financial line I have talked about previously. I have, up to this point thought along the lines of how someone like my self or my children might become wealthy as an individual or as a couple. But while I was employed by IBM a number of years ago, one of my co-workers, William Oyang, wanted to purchase a house. He spoke with his father and "the family" loaned him the money to make the purchase. He would then pay back into the family, still paying interest but not as much as the market was charging. It was a win for both sides. William paid a lower rate than what was out inthe market but the family fund was paid more interest than they would have made by keeping the money in the stock/bond market or in CDs, etc. Just as with a bank, "the Family" held the lean on the house and the terms were basically the same as with a normal mortgage if you did not pay. The nice thing was that there was a little councilling that came along with the lending (or not lending if it was a bad investment).

I don't know much more about the details but I was impressed that in his family there was a fund where loans could be obtained at reasonable rates for some of the great things in life. I thought about what it must be like to have funds available for missions, education as well as a home.

How would such a fund be obtained? How would it be administered? How would it be handled or distributed as the family, children, grand children and great-grand children, expanded the family into greater and greater numbers.

What other benefits could be obtained through banding together to get better rates? Fleet insurance on cars and trucks? Services such a yard care or home maintenance?

These are the topics that I will begin covering as I investigate what it would take to make a wealthy family rather than just a wealthy couple.