bright eyed
Thinks s/he gets paid by the post
- Joined
- Jan 4, 2007
- Messages
- 1,891
Hi everyone, new here, want to thank you in advance for your help.
My dearest friend of over 20 years (since we were kids) has been sucked into the World Financial Group. Her cousin sucked her in and he's attached himself to her side ever since they reconnected (he was overseas for several years). I had talked with her about starting to save for her retirement, she mentioned talking to her cousin who knew "everything" about finance and was going to "show" her how to take advantage of all these "tricks" that wealthy people are only privy to.
She is very very green when it comes to financial info - after i did a little (really very little) research on the VUL's and WFG i was not happy. I sent her all the info and she read it (but with him by her side yapping about why it was wrong). i even sat with him for a mind numbing hour where he lied and backpeddled every time i asked pretty basic questions.
He was pushing the VUL as an investment tool - to take out "tax free" loans that would essentially never be penalized as long as you left a "small" amount in. He was also saying that they invest in "aggressive" funds yielding 20% or more (which my dad said borders on fraud). when i said the stock market only yielded about 10% historically, he started saying yes, well, 10% is the average! and then acted like he would never have said 20% - my friend sat there the whole time.
Anyhow, i had one final discussion with her several months ago - pleading with her to do her own research and saying it would be irresponsible to go and drag friends and family into this stuff if she didn't know what she was talking about. she was upset and broke down saying she just trusted him and didn't think he would "lie" to her. arrrg!
anyhow, i said this is the last time i would bring it up - hoping she'd get over it - but he is like a leach and has stuck to her, meeting with her nearly daily, and now her mother in law is "investing" and many other people in her circle. she's already purchased a policy from him and thinks the "vul" is something to aspire to (barf). (btw my dad has sold life insurance for over 20 years and explained them to me in detail, and all the risks in terms of collapsing etc).
i also think he has discouraged her from investing in her workplace 401k, so she can put more into these funds.
i am very conflicted because i know there is not much i can do to dissuade her - but it is upsetting to know that she and her family are doing these things with their money - none of them are particularly wealthy - which i think is part of the deception of WFG, taking people who know nothing and making them think they are now in the "know."
also, it really is going to affect our friendship - i think it is unethical and am fearful about what will happen to her and her family financially - any advice is appreciated.