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Ty j Young Inc
Old 06-09-2016, 07:23 PM   #1
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Ty j Young Inc

Anyone know anything about this he says
You "never lose money" his video says this simple and called a index annuity. On a great year the max you make is like 17% even If the market goes higher. If the market is down like 20% you make 0% never loosing money. Also says no fees hard to understand this product.


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Old 06-09-2016, 07:25 PM   #2
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That's not enough information for a real answer, but seriously, run away from indexed annuities. They are all (afaik) rip offs.
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Old 06-09-2016, 07:35 PM   #3
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Don't walk, run (away):

Quote:
Ty J. Young’s “proven and trusted Wealth Management strategy,” which is “only available to Ty J. Young clients,” relies solely on fixed index annuities, also known as equity-indexed annuities or hybrid annuities. Ty J. Young promotes these products as simple, straightforward, and safe, but that is not necessarily the case.

But before we even get into the issues surrounding index annuities, we want to remind consumers that Ty J.Young is not an investment advisory firm that is registered or supervised by the SEC or state security regulators. It is an insurance company, the site notes in its fine print, with insurance salesmen pitching insurance products on behalf of third-party insurance companies that compensate Ty J. Young Inc. and additionally, “neither Ty J. Young Inc., nor any agents acting on its behalf should be viewed as providing legal, tax or investment advice.”
https://www.truthinadvertising.org/ty-jyoung/
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Old 06-09-2016, 08:02 PM   #4
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Anyone who promises high upside with no downside is lying. Personally I have no idea how it works but an investigation would purely be to find out what the trick is... and I wouldn't spend time on it.

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Old 06-09-2016, 09:33 PM   #5
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Originally Posted by robdwny View Post
If the market is down like 20% you make 0% never loosing money. Also says no fees hard to understand this product.
This is a very bad product from a seller who very likely cares more about making money for himself than in helping you.
If you want an equity-linked investment there are (complicated) ways that you can replicate what this guy is selling for much lower cost (because he's not getting his cut). But, really, once you understand how these work and what you give up, you wouldn't want to replicate the thing even at zero cost.
Run away.
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Old 06-09-2016, 09:35 PM   #6
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Imma gonna buy in big time! Are you kidding? 17% upside and zero downside?

I'm gonna sign up just as soon as I close on the uranium mining operation deal on Mars!
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Old 06-09-2016, 10:14 PM   #7
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I read the blog with great interest. My wife bought an annuity with her husband's life insurance money to protect against creditors.
When it came time to roll over the annuity, she was offered a 9% bonus for the rollover if she took a certain contract. I went into the fine print and found the yearly fees were higher if she accepted the bonus. I ran it through a spreadsheet, and found at year 7 and up, she would be losing money because of the higher fees.
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Ty j Young Inc
Old 06-10-2016, 10:05 AM   #8
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Ty j Young Inc

These are terrible deals. Basically, the product has two accounts: the real account where you investment goes and from which expenses are subtracted and the income base account. The income base can never go down, but you can't get to that "money" ! That account value only sets the base for when you start taking an annuity. The only account you can get to is the real account( if you wanted to cash out or roll to another investment or annuity). I have seen some nice illustrations showing that the end result is a 1-2% return for the typical product.

The advice to run away from this "investment " is worth its weight in gold.


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Old 06-10-2016, 10:15 AM   #9
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This product is basically a combination of a long position on a stock index and buying corresponding protective put contracts on that same underlying long stock position at a strike price closest to current share price. Doing it this way, in a bear market the stock loses a lot of value, but the gain in the value of the put (which can be exercised just before expiration) pretty much offsets the loss in the value of the stock. The money "made" by exercising the puts would be used to buy more stock and more puts at a lower strike price. In a bull market the puts expire worthless, but you sell a few shares (at a higher price) to buy new puts at the *higher* strike price. (This means, then, that your gain would pretty much be the index gain, minus a fraction of a percent for commissions and ETF fees, and minus the cost of the expired puts.)

The main difference is that someone doing this for themselves won't be "capped" at a 17% gain. And the annuity pusher doesn't get his/her cut.

In reality most folks are still better advised to just hold the index long term; over a long period of time you will likely do better. But this mechanism can more or less do what these annuity sellers advertise -- getting *almost* market-level returns in up markets while exposing you to little or no downside in down markets. But there is the overhead involved with buying the puts again and again, each time they expire. Worst case, in a flat to declining market, you will have negative return based on the cost of the options premium. And another problem is that usually when markets are behaving badly and volatility is high, the cost of the puts gets really high.
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Old 06-10-2016, 10:40 AM   #10
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Free bucket of snake oil with every purchase!
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Old 06-10-2016, 11:03 AM   #11
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Quote:
Originally Posted by robdwny View Post
Anyone know anything about this he says
You "never lose money" his video says this simple and called a index annuity. On a great year the max you make is like 17% even If the market goes higher. If the market is down like 20% you make 0% never loosing money. Also says no fees hard to understand this product.


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If you put $100,000 in and want it back a year later, you'll likely get $90,000 or less... one of many things they are not telling you about is surrender charges. In my simple mind, that is losing money.
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Old 06-10-2016, 12:02 PM   #12
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I was just checking in on it. I'm not buying,it sounded to good to be true.


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Ty j Young Inc
Old 06-10-2016, 07:30 PM   #13
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Ty j Young Inc

Quote:
Originally Posted by petershk View Post
Anyone who promises high upside with no downside is lying.


Quote:
Originally Posted by samclem View Post
This is a very bad product from a seller who very likely cares more about making money for himself than in helping you.


Quote:
Originally Posted by brewer12345 View Post
Free bucket of snake oil with every purchase!

Regarding purveyors of products like these, if they are not unprincipled then they are at the very least clueless. And when it comes to my finances, I'd be no more inclined to trust the clueless than the unprincipled.
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Old 06-10-2016, 07:39 PM   #14
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Ever since Bernie Madoff retired, I've been looking for a guaranteed return of at least 10%, so this sounds like a deal

In case anyone takes me seriously:
https://en.wikipedia.org/wiki/Bernard_Madoff
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Old 06-11-2016, 06:53 AM   #15
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The upside potential of this product is further hobbled by the fact that stock dividends are NOT included in the return. These things are inappropriate for all but the most risk averse, and even then there are better ways to accomplish the same task.
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Old 06-11-2016, 01:16 PM   #16
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Quote:
Also says no fees hard to understand this product.
Classic commercial annuity sold by a number of LI companies. You, of course, understand that he gets paid about 5% or so depending on his contract with the LI company. For example, you fork over $100,000 and he gets a $5,000 check next week. You don't pay him a fee; the LI company pays him a commission.

It's just words.
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