Halloween is 8 month's away yet goblin Michael Vaughan is trying to scare annuity owners.
Michael Vaughan's wrong about annuities and what he says is contrary to the value placed upon them by "sophisticated institutional investors" who buy J.G. Wentworth's annuity-backed notes. in an article Michael Vaughan wrote for entitled "Annuities-The Real Story" and showcased on Mature Resources.Org-Your Connection to Positive Aging, he attempts to scare the crap out of senior citizens to induce them to sell their annuities, while citing incomplete sources primarily relating to variable annuities (i.e.NAVA) while ignoring income annuities, equity indexed annuities, deferred income annuities and impaired risk annuities.
Consider this..."The company's annuity-backed notes, which are rated AAA by Standard & Poor's and Aaa by Moody's, are marketed by top-tier Wall Street firms to sophisticated institutional investors around the globe." This appears in the bio section for Michael Vaughan referring to J.G. Wentworth.
If the annuities were crap then why would the "annuity-backed notes achieve the highest rating from Moodys and Standard & Poors"? Why would "sophisticated institutional investors" be lining up to buy them? Because dear consumer, those "sophisticated institutional investors" are drooling to get at the high discount rate you're effectively paying by selling your asset to J.G. Wentworth at a discount. If you could get a AAA rated bond at better than junk bond rates wouldn't you be drooling?
Seniors having this type of annuity leads to a base level of security for them in retirement, correct? Why would they sell the very type of investment that they can count on for the rest of their lives? It seems either odd or disingenuous to use scare tactics like that.
Jerry
www.leads4insurance.com
Posted by: Jerry | April 11, 2007 at 08:48 PM
Exactly my point, Jerry. Good comments
Posted by: John Darer | April 11, 2007 at 11:50 PM