DISQUS

mapgirl · 2 years ago

Maryanne wrote that she needed her father to stay alive till 2010. I think that's your answer right there. His life expectancy is less than 3 years if she is hoping that he lives another 3.

Sounds like she did get hosed. She should file complaints left and right with the state agency, the BBB, and possibly banking regulators for this kind of referral stuff by tellers to an outside firm. She should look up with NASD and insurance regulators whether or not the broker/salesperson has ethics violations and possibly go to arbitration. I wrote about this kind of thing recently and I have the NASD website link to their monthly ethics violations page. However, from the past experience of a friend, I know it's REALLY HARD to win a lawsuit or arbitration against the salesperson. Plus you have to shell out a lot of money to get legal representation.

How sad her father got ripped off like this. But I'm cynical that she'll be able to get the situation ameliorated.

craig · 2 years ago

Sorry I haven't been able to get back to you on the last post flexo, I've been busy and as I said I'm not in the biz anymore.

This is one use of an annuity. This use of an annuity is not desirable in my mind. I would always take the lump sum in these cases, but I am young and non risk-averse (and will likely be old and non risk-averse).

Many annuities offer security that the stock market can't (even if they are variable annuities). This is important for older investors that want to participate in markets, but still have guarantees on their money. When I get more time I promise to post in more detail.

plonkee · 2 years ago

Interestingly in the UK, at the age of 75 it practically compulsory to purchase an annuity with your retirement pot(s). It sounds like the same kind of annuity as well.