The Barefoot Investor told a woman there was nothing she could do to stop her mother from sending a worrying amount of money to a “fling” she met abroad.
Scott Pape, 46, received a letter from Linda saying she was concerned about her mother as she was still sending large sums of money to a man she met in 2010.
“She almost lost her house, she’s already used up her pension money and I fear she’s going to be in big trouble soon if this continues,” she explained.
‘She met a young Casanova in Egypt, and their holiday romance quickly grew into a business partnership.’
Linda said her mother took out a loan against her house to finance “projects” such as a car factory and a haute couture fashion house abroad.
She is concerned because her mother is optimistic about these projects, in which she has invested hundreds of thousands of dollars, but which have not given her any return.
Linda said she wanted to help her before it was too late.
“She is a teacher who is struggling to find a stable job as she is past retirement age, she is struggling with debts she can no longer pay and she has enough pension to get her through until Christmas this year,” she said.
Scott Pape received a letter last week from a woman named Linda who is concerned that her mother has reached retirement age and is burdened with debt.
Linda said her mother, who has no business experience, has been sending large sums of money to a man in Egypt since 2010 to fund “enterprises”
Mr. Pape shared his advice in his column in the Herald Sun on Sunday, admitting that there was little Linda could do.
“You can’t call the police,” Mr. Pape said.
‘It doesn’t sound like he’s doing anything illegal (maybe immoral, but not illegal).
“And you tried to make her see sense, but after 14 years it clearly didn’t work.”
Instead, he insisted that she protect herself emotionally and financially.
“I would suggest writing a letter to your mother explaining how much you love her and how concerned you are about her financially,” Mr. Pape suggested.
“Then give her a detailed picture of the likely consequences of her actions. Paint her a picture of what her retirement will look like.
‘Understand that her debts will die with her: you will not inherit them… but that also means that you will not inherit any money from her.’