If you are nearing the edge of the cliff and did not know, would you like someone to tell you before it was too late? Absolutely. That is the principle rector of this column, to inform investors everyday hazards that could cause them and their savings irreparable harm.
I have heard of Many of these investors lately. Some of them got the message before it went down the cliff. For others, the warning came too late.
In recent years I have been sounding the alarm bell because of the dangers inherent in equity indexed annuities (EIA). And the message is being heard. Recently I have published detailed reports on the EIA in general and specific on environmental impact assessment more popular in the market, the Allianz MasterDex 10. These reports free, explain the risks and dangers to which the person selling them does not. Too bad Greg's grandfather did not know the truth. Greg explains: "Back in 2000 my grandfather discussed in purchasing one of these by an agent. I was thinking of withdrawing only the interest each year to live. Well, for the first 6 years, was circulated 10% of your initial investment. Recently, it has been with terminal cancer and wanted out.
"He called for total withdrawal, knowing that he would pay 4% (delivery) sanction. Well, its complete withdrawal in the seven years he came to less than 90% of your initial investment! Reading through the contract, apparently was not supposed to begin receiving distributions until 2015, when he was 98 years old! Does this sound right to you? "
No, Greg, it sounds good to me. But unfortunately, this is how some of these works EIA. The truth is written in the fine print of the contract, which most people can not read, much less understand.
Fortunately, Jim read his contract, and just in time. Jim said, "I meet with a counselor. Recommended the MasterDex Allianz 10, which at the time offered a bonus of 12% in advance. Then he went through his speech seemed so good I put my IRA for in it. That was the first time I saw the book, when he stretched for me to sign, and I did. When I got home, I read and saw that it was in poor condition, thank God for the "three days cooling off period."
"I called and stopped the operation. I shudder when I think how close we've come really to spoil. I thought I was on my side and tried to help, when all I was trying to do was help my own money. I'm glad I got on the Internet and found. You answer the questions even more. "
Not all unscrupulous agents. As Mark found out, some of them are so ignorant of the truth Like most investors. After reading my free report, Mark sent his adviser. The advisor replied, "I printed the report, spoke with the representative Allianz and hit him with every point. I can not believe they could have BSEd me so well. This is a lousy product. Do not buy and do not EVER think of showing that any a new one. "
I am glad that Mark has a counselor who does not put the profit motive above doing the right thing for their customers. That was not in the case of Phil and Donna. Here is his story, his own words: "We were stupid enough to let go at 401k convert my husband in an EIA. Obviously, if he understood what they were getting into, we should run, not walk away from this! This is really the investment of hell!
"We would like to know if there anyway this mess without losing almost 25% [of surrender penalties]. This policy has made 0% the first year. "While the market rallied nearly 15% in 2006, Phil was only 1.5% this year!
FAIR GROUNDS, 2009-03-29, Race 9
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