Rs 30 lakh savings but dad demands Rs 50 lakh: Techie caught between his financial planning and father's business dreams

A 27-year-old software engineer is facing a difficult situation involving his retired father’s sudden ambition to start a business. The man, who earns a stable income and has been building his financial future, shared his concerns in a Reddit post that quickly drew wide attention and support. Despite his love and gratitude toward his parents for their sacrifices, he now finds himself under pressure to take on a risky financial commitment that could put his entire savings and future at stake.

The engineer, a new father himself, has saved Rs 30 lakhs through disciplined investing in stocks, fixed deposits, and gold. He lives in a metro city with his wife—currently a stay-at-home mother—and their baby. His long-term goal is early retirement by 45-50, achieved through aggressive saving and investment.

He also sends Rs 30,000 every month to support his parents, who live in a tier-2 town. His father, a lifelong farmer with little to no savings, now wants to start a manufacturing business, inspired by neighbors who have found success in ventures like disposable plate factories and plastic recycling. However, the son is skeptical—pointing out that his father has no prior business experience, and the venture appears more aspirational than planned.

Father Demands Loan, Son Says No
As per the Reddit post, the father asked his son for Rs 50 lakhs to invest in the new venture. When his son declined due to lack of funds, the father suggested he take a loan. After the son refused again, he was then asked to co-sign or be a guarantor on the loan. This prompted concern among users online, many of whom warned of the potential legal and financial consequences.

Commenters pointed out that if he agrees to be a guarantor or co-applicant, he would be legally liable in case of default. They emphasized that banks could then pursue his savings or impact his credit history, especially since Rs 50 lakhs is a significant amount, unlikely to be lent without collateral or a strong financial backup.

Legal and Financial Risks Highlighted
Several Reddit users shared personal experiences to reinforce the risk. One person revealed that co-signing a loan for a parent’s failed business set them back financially by nearly a decade. Others stressed that since the father is not earning and has no business history, the bank might require a guarantor—making the son legally tied to any losses.

Some suggested that the father might be influenced by envious neighbors or even misled by someone promoting high returns without proof.

Alternatives Proposed by Reddit Community
Many commenters advised the son to have a calm, honest discussion with his father, urging him to reconsider such a high-risk venture. Suggestions included starting small—like opening a grocery store or returning to farming, perhaps even trying organic or mushroom cultivation, which would require significantly less capital and build on his existing experience.

There were also practical ideas for handling the situation diplomatically, such as telling the father that company policy prohibits employees from being guarantors or starting side businesses without approval. Others encouraged transferring savings to the wife’s name or locking them in long-term investments to protect assets.

The engineer acknowledged that his current life and opportunities are the result of his parents’ sacrifices, especially his father’s determination to educate him despite limited means. Still, he is deeply concerned that saying yes to this venture could endanger the very future he is working so hard to build for his own child.