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Kiplinger
Kiplinger
Business
H. Dennis Beaver, Esq.

How to Lose Your Shirt Investing in a Restaurant

A restaurant owner sits in his empty restaurant while he looks over paperwork.

“Mr. Beaver, I inherited quite a bit of money from my father recently and have been asked by his much younger brother, ‘Ben’ (my uncle), to invest in a restaurant he plans on opening. He ran two restaurants that failed but has assured me, having learned from his mistakes, that he can guarantee this one will be successful, and I will have a 30% return on my investment within a year. He wants $250,000, which is almost all the money I inherited. ‘Cindy,’ my wife, says that Ben is incompetent, and she will divorce me if I give him the money. What do you think, Mr. Beaver? Thanks, ‘Harry.’”

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