High Risk, Low Reward: What to Know Before You Buy An Annuity
ATTORNEY NEWSLETTER
The financial market is fraught with complex money-making schemes, many targeted toward those without the background to fully understand what they’re putting their money into. Although people are growing more wary of Ponzi schemes and other illegal practices, it can also pay dividends to understand some of the more risky pedestrian “investment opportunities.” Annuities can pose a significant risk, particularly toward elders, who are among the common targets of unscrupulous salespeople. Strategies like posing as “Certified Senior Advisors,” showing up at potential customers’ houses unannounced or throwing luncheons to entice unsuspecting seniors are commonplace tactics to sell annuities. Any experienced California financial elder abuse lawyer will recommend taking a closer look before you buy.
Spot a Scam Before You Buy
Selling annuities requires such scheme because the policies themselves do so little to recommend themselves. Once the money is invested, early removal can incur penalties up to 25%, and after a high initial return, policies often yield pitifully small monthly earnings. Other tricks include paying “bonuses” by taking it out of next month’s income, skimming commissions for the sales agent off of earnings, and limiting sales of forfeiture of the account for up to 15 years. Rather than fulfilling the promise of simple retirement planning, they can deplete ample funds and tie retirees into long-term commitments to unsatisfactory investments. Financial elder abuse lawyers and others agree that risky annuities can be a major detriment to long-term financial planning.
Transamerica Life Insurance Company is one of the largest sellers of these products, describing itself as “one of the leading financial services companies.” They offer deferred and variable annuities as part of their financial services.
Learn How We Can Help: Contact Our California Law Firm
The Evans Law Firm, based in San Francisco, deals with elder abuse both physical and financial, including annuity and long term care fraud cases committed against senior citizens, as well as elder law and estate planning such as living trust and will packages, powers of attorney, probate matters, Medi-Cal planning, estate administration, trust administration, will and trust contests, specialized trusts including special needs trusts, and conservatorships. In addition, our attorneys handle consumer fraud class actions involving insurance and banking fraud claims, fixed, indexed, and variable deferred annuity and insurance cases, as well as Qui Tam (whistleblower/false claims), IRS tax fraud lawsuits, securities fraud whistleblower reward lawsuits and FINRA arbitrations, retaliation and employment litigation. Contact the Evans Law Firm at (415) 441-8669 to set up a consultation.
