Masterdex 10 Annuity

If you were about to the edge of the cliff and did not know, you want someone to warn you before it's too late? Of course you. This has been the guiding principle of this column to inform investors of everyday traps that could drive and irreparable harm to their savings.

I heard many of these investors lately. Some of them have received the message before their descent down the cliff. For others, the warning came too late.

In recent years I have been sounding the alarm because of the inherent dangers found in equity-indexed annuities (EIA). And the message is heard. I recently published detailed reports on EIA in general and specifically on the EIA's most popular on the market, the Allianz MasterDex 10. In these reports for free, I explain the risks and pitfalls to be sure that the person who sells it. Too bad Greg's grandfather did not know the truth. Greg explains: "In 2000, my grandfather spoke of buying one of these by an agent. It has been decided to withdraw the interest each year to live. Well, for the first 6 years they have distributed 10% of its initial investment. Recently it has come down with terminal cancer and I wanted out.

"He asked for a full withdrawal, knowing he would have to pay 4% (surrender) penalty. Well, its withdrawal on the seven years came at least 90% of its initial investment! Read the contract, it looks like he could not begin to receive distributions until 2015, when he was 98 years old! Does this sound right to you? "

No, Greg, it does not sound right to me. But unfortunately, that's how some of these works EIA. The truth is written in small print of the contract, which most people do not read, much less understand.

Fortunately, Jim read his contract, and just in time. Jim said: "I meet with a counselor. He recommended the Allianz MasterDex 10, because at the time, they offered a premium of 12% front. After he went in his speech that sounded good so I rolled my IRA over the issue. It was the first time I saw the brochure, when he expected me to sign, and I did. By getting home, I read and saw that I had messed up, luckily for the "three days waiting period.

"I reminded him and stopped the operation. I get chills when I think of cold as close as I've just really wasted. I thought he was on my side and tried to help me, when all what he was trying to do was help himself to my money. I'm glad I had on the internet and found you. You have answered questions more. "

Not all agents are unscrupulous. As Mark found out, some of them are equally ignorant of the truth that most investors are. After reading my free report, Mark has sent his adviser. The advisor replied, "I printed the report, discussed with the representative of Allianz and knocked on every point. I can not believe they could BSed me so well. This product is bad. You do not buy it and I do not plan ever to show someone else. "

I am pleased that Mark has an adviser who does not put the pursuit of profit above what is right for its customers. This was not the case for Phil and Donna. Here are their stories in their own words: "We were stupid enough to be influenced in turn 401k all of my husband in an EIA. Obviously, if we understood what we commit, we would have run not walked away from this, this really is the investment of hell!

"We would like to know if there is anyway out of this mess without losing nearly 25% [in the remission of sentences]. This policy has 0% the first year." Even if the market grew by almost 15% in 2006, Phil does 1.5% this year!