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Friend is trying to get me into his annuities
Old 06-04-2015, 12:19 PM   #1
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Friend is trying to get me into his annuities

Nothing like having a friend who becomes an Insurance and Annuity salesman put the pressure on. He knows I'm worth 7 figures so I can't say I have nothing to invest.

Anyway here is his pitch. I see lots of holes in it but I'd like other input:

" I already know you are no fan of life insurance and annuities as retirement income vehicles. You should be, now that you are retired and the market has been on a rise for the last 5 years.

I hope you have minimized your exposure to the market.

Best wishes,

Tom



On 6/4/15, 7:31 AM, XXXXXX wrote:
--------------------
Hi Dan,

I thought I'd send you an update on what I am doing. My business turned 1-year old last month. It was a great year. My goal was simple: teach people how they can put their money away for retirement and safely earn market returns without putting their money at risk in the stock market. Unlike IRA & 401k accounts, my strategy gives you access to your savings every day between now and the time you retire so that you can deal with life's little emergencies, planned events, and for the more sophisticated investors, put your money to work in TWO places at ONE time.

I've been constantly surprised and humbled by how many of the people I meet on LinkedIn, who are real estate investors and also hold a life insurance license, want to join me in what I am doing. As a result, my business now includes a half-dozen agents around the country all working to spread the good word. I am grateful for their help.

Anyway, I post educational pieces periodically on my LinkedIn page, my Website and my Facebook page. These are always educational and not sales-oriented.

Here are links to each:

Blog | Innovative Retirement Strategies, Inc.
www.facebook.com/InnovativeRetirementStrategies

Be sure to like or follow one of these to stay up to date. Please share with your networks to help spread the word.

Thanks for staying connected.


XXX

and after I replied that I might look:


Hi Dan,

An IUL will match the market up to 13% and it puts a floor on your returns at zero. You can't lose principal. The market will outperform the IUL over a long enough period, but the ride is much smoother with an IUL (see the chart on this page).

Just say no… to Wall St. | Innovative Retirement Strategies, Inc.

If the market dives 25% tomorrow, you will have outperformed the market by 25%. I like zero. Life insurance fees are expensive upfront, but over the long run, the costs are less than most mutual funds. After the 10th year of a policy, for example, the cost of insurance is less than 1/4% in a properly funded policy. You can get virtually the same market exposure as your current portfolio.

There is no better way to transfer wealth to your kids. This table shows why a life insurance policy will provide about 3X the income of a traditional IRA invested in stocks:

http://innovativeretirementstrategie...IUL-vs-IRA.pdf

I've got an annuity that pays a 10% bonus with guaranteed growth of 7% on the income side. The means the payment would be 6.7% of your initial contribution if you annuitized it just one year later. If you defer longer, that goes up considerably. Payments are doubled with the wellness rider (cant perform 2 of 6 activities of daily living).

If you are healthy enough to get life insurance, creating a MEC (modified endowment contract) would get you far more income than an annuity would pay out.

XXX


All I know is there is "no free lunch" and he has a nice yacht that he send pics of on facebook all the time. I'm assuming he gets a good cut of every sale. Good for him but perhaps not so good for the customers?
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Old 06-04-2015, 12:31 PM   #2
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"I've been constantly surprised and humbled by how many of the people I meet on LinkedIn, who are real estate investors and also hold a life insurance license, want to join me in what I am doing. As a result, my business now includes a half-dozen agents around the country all working to spread the good word. I am grateful for their help."

For some reason, this paragraph makes me think of a combination of Amway, Ameriprise, and the Jehovah's Witnesses!
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Old 06-04-2015, 01:25 PM   #3
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"I've been constantly surprised and humbled by how many of the people I meet on LinkedIn, who are real estate investors and also hold a life insurance license, want to join me in what I am doing. As a result, my business now includes a half-dozen agents around the country all working to spread the good word. I am grateful for their help."

For some reason, this paragraph makes me think of a combination of Amway, Ameriprise, and the Jehovah's Witnesses!
LOL--I was also stopped by the "good word" part!

I guess the simplest answer you can give is that you don't mix investments and insurance products, that you find it easier to buy them separately for reasons of your own.
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Old 06-04-2015, 01:29 PM   #4
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Your friend will have a packaged response to anything you might say against his company. He is no doubt sending the same canned messages to several people. We would probably just ignore his business but maintain any personal relationship that already existed. If he won't let it rest, and if you've never involved him in any of your own business dealings, point that fact out to him.
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Friend is trying to get me into his annuities
Old 06-04-2015, 01:32 PM   #5
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Friend is trying to get me into his annuities

http://youtu.be/7FPELc1wEvk

Run away!


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Old 06-04-2015, 02:47 PM   #6
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If it sounds too good to be true...

Equity Indexed Universal Life Insurance - 7 Reasons to be Wary of It

5 Reasons Not To Buy Indexed Universal Life Insurance | MD Magazine

Indexed Universal Life Insurance: A Rip-Off with a Fancy Name - DailyFinance

A "friend" would not pressure a friend, especially where personal finance is involved. I'd have no problem clearly saying no thanks to such a "friend."

And his resume is sketchy IMO https://www.linkedin.com/in/tomrutkowski, lots of job hopping.

This promo makes me think of "The Wolf of Wall Street." Seriously?
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Old 06-04-2015, 03:00 PM   #7
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If he's using email, I'd send him a "fresh" email (not an re: to his note). Make small talk, ask how he and the kids are doing, etc. Somewhere in there note that you've gotten his emails about various insurance and annuity products and "I hope you'll understand that I'm not interested in these. I appreciate your interest, but it is just not something I'm going to do."

That's it. I would not feel in the least obligated to provide any additional information or rationalization.
It separates your personal relationship from his business undertakings.
If you DID want products of this type (you don't), what would be the chances that his particular products (the ones paying him a healthy commission) would be the very ones you would choose? About zero, right? So save him time by cutting this off with minimal discussion.

Good luck.
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Old 06-04-2015, 03:08 PM   #8
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I didn't read the advertising material. What are you trying to accomplish by posting this here? Do you want our sympathy? Do you want us to concoct a reply? How about this:

Tom, never ever again send me any e-mail, letter, or communication trying to sell me anything or to help me finically. Don't do it. Dan

PS: I will make one exception: You may send crisp $100 bills to me any time, but I will not even thank you for them, but I will spend them.
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Old 06-04-2015, 04:31 PM   #9
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Why not just reply with your truth. You have done just fine managing your finances up to this point in your life and will continue on the same.

No reason that you have to stop being a friend/acquaintance with him, just keep it in a non-business relationship.
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Old 06-04-2015, 04:36 PM   #10
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Ask to see the back testing about his vehicle, just for fun, to compare to yours. No matter what, keep asking for more numbers. He just wants you to him busy.
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Old 06-04-2015, 04:37 PM   #11
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All I know is there is "no free lunch" and he has a nice yacht that he send pics of on facebook all the time.
I am reminded of a book title. Where are the Customer's Yachts? Ask him that....
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Old 06-04-2015, 05:49 PM   #12
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With friends like that you don't need enemies.
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Old 06-04-2015, 05:51 PM   #13
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With friends like that you don't need enemies.
Yea, I don't think that "friend" and "annuities" can be used in the same sentence.
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Old 06-04-2015, 07:42 PM   #14
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Yea, I don't think that "friend" and "annuities" can be used in the same sentence.

My friend told me not to buy annuities.


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Old 06-04-2015, 10:45 PM   #15
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A SIL of a friend of mine but me on his email sucker list. His newsletter shows the YTD performance of his superior plan. So far, he is down 14%.

There is no place for honest folks in the business of taking money from uneducated investors. But I do wonder if anyone has actually signed up for his service.

I put him into the ignore list. Someday I will probably meet him face to face, and then I will have to be brutally honest with him.
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Old 06-04-2015, 10:54 PM   #16
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Old 06-04-2015, 11:08 PM   #17
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Equity indexed annuities are stupidly expensive bits of nonsense. IUL makes them look sensible. Add this dude's email address to your ignore list. His sales training is all about getting you to engage and then beating down every objection in order to make the sale. Don't engage.
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Old 06-05-2015, 12:43 AM   #18
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It sounds like a multi-level-marketing annuity scam. DH and I saw a presentation along the same vein about 20 years ago. I feel sorry for the friend that is mixed up in this, actually.


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Old 06-05-2015, 08:53 AM   #19
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I have had a few friends get into the insurance business including one who drove a truck previously and delivered produce. Those guys lasted in that business until all of their family and friends were signed up and they weren't good enough salesmen to get new business.
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Old 06-05-2015, 08:56 AM   #20
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It sounds like a multi-level-marketing annuity scam. DH and I saw a presentation along the same vein about 20 years ago. I feel sorry for the friend that is mixed up in this, actually.
You might feel otherwise if you look at the friend/sellers resume, he knows full well what he's doing.

https://www.linkedin.com/in/tomrutkowski
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