by Structured Settlement Watchdog
All that Glitters Isn't Gold, or at least the "less than 10 carat" Gold IRA Guide, which uses the scam label, SMA (Secondary Market Annuity) for structured settlement derivatives.
Gold Blemish #1
"These annuities provide such a good rate of return because the original payee sells the annuity at a significant discount in order to get large payment upfront".
Comment: SMAs are not annuities, a point admitted to by Nathaniel Pulsifer of Annuity Straight Talk, who Gold IRA seems have some association with. SMA is a scam label acronym that is used by merchants of structured settlement derivatives because, as Nathaniel Pulsifer has said, "it's easier to say". Hey, Crisco is easier to say than WD-40.
Gold Blemish #2
"You can buy the secondary market annuity from the original owner at a discounted price. The original owner gets a lump sum payment, and you will eventually get back much more than what you paid. While the original owner is essentially losing money…"
Comment: You do not buy any annuity from the original owner because the original owner still owns the annuity. When you buy the scam labeled investment in structured settlement derivatives that Gold IRA is speaking of, you are buying structured settlement payment rights ( a term which is expressly defined in the Internal Revenue Code at IRC 5891(C(2)
Gold Blemish #3
"When the annuity is transferred, the courts will state your name and information in an executive court order, and the insurance company will be directed to start issuing the payments to you instead of the original owner"
Comment: The annuity IS NOT transferred to you. What is transferred to you, assuming a valid structured settlement factoring transaction, are structured settlement payment rights, a derivative of the structured settlement. The original owner of the annuity, the qualified funding asset of the underlying settlement remains the same.
Gold Blemish #4
"Secondary market annuities are very safe. The settlement amount is not a projection but a contractual promise by a top carrier. This means you don’t have to worry about whether or not you may or may not get a payout" There are always risks involved when you are investing your own money. However, the risks associated with these annuities are nominal, particularly when compared to the risks associated with other types of investments.
Comment:
Gold IRA misleads. Why? 6 Words: Linda Cooper , Barry Cooper, Linda Wall. These are real people who bought scam labeled secondary market annuities and have been victimized. The Walls were victims of fraud that happened at the origination level of the structured settlement factoring deal. The Coopers found out 15 months ago that the scam labeled secondary market annuity they bought with money from Barry Cooper's government thrift savings plan had competing claims with Access Funding victims. Payments were suspended pending outcome of litigation. The Cooper's still haven't been paid a dime on their $150,000 investment and three payments have been missed. If it was a contractual promise of a top carrier why would payments be suspended?
Gold Blemishes #5, 6 and 7
"Risks involved in this type of investment:
- If the insurance company making the payments files bankruptcy, you may never get your money back that you invested. Focus on buying annuities that are being paid by a large well-funded insurance company like New York Life or Met Life.
- They are not insured deposits with the Federal Deposit Insurance Corporation. There are no federal organizations that insure SMA deposits.
- Foreign investors run the risk of losing money in the exchange rate. These annuities are based on the US dollar, so depending on the exchange rate, they may not be a wise investment for some foreign investors.
- It cannot be liquefied, so your investment will be locked in until the end of the payment contract. People sell their annuities because they need or want the money upfront. Selling will not be an option of the investor."
Comments: 1. Scam labelers of structured settlement derivatives never seem to mention transaction risk or origination risk 2. Insurers cannot declare bankruptcy 3. People don't sell their annuities, they sell their structured settlement payment rights. 4. Non US citizens residing in the USA, need to be mindful of very low estate tax exemptions when getting into an illiquid investment such as a structured settlement derivative. Far bigger problem than exchange rate.