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sschullo

Free-pizza-can-be-dangerous-your-financial-health

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The latest free lunch being offered at our school is by an outfit names "Legacy". I didn't attend either of the two meetings but the teachers I talked to were impressed by two things: 1. The quality of the free lunch. 2. The fact that this was "No risk".

 

I couldn't find any information on line but they seem to be selling something that offers slightly reduced returns when the market is good but guarantees preservation of capital in bad years. Personally, I'm not interested in the least, but I wonder if anyone knows what this product is? I have just been keeping my mouth shut but I hate to see my friends loose their hard earned money.

 

 

Its good that CalSTRS is finally stepping up to the plate about what we have been saying for years.

http://www.calstrsbenefits.us/blog-post/fr...inancial-health

 

 

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Probably an equity indexed annuity. They guarantee that you will never lose money, which is true, but what is a blatant lie is that there are "no risks".

 

The risk is that your money will never earn the established market averages, the averages that our pension fund earns over the years, it cannot possibly keep up with inflation and when the teacher makes distributions in retirement, there are ordinary income taxes. Add all of this up, the teacher will lose about 1/3 of their money.

 

For decades "investors" from all walks of life have been lured into insurance "products" not ownership investments. We all know what we are fighting against, reminds me of the classic "To Kill a Mockingbird" by Harper Lee, which is now celebrating its 50 anniversary date of publication. The main character, Adicus Finch, the attorney fought against all odd when he took up the case to defend a Black man accused of raping a white woman. There are the few of us here who are fighting to get the word out as Adicus was doing throughout the book, knowing that he will lose the case and in the meantime, almost lost his life as well as his children. But in the long run, racism as a lawful and established institution no longer exists. The same will happen with using annuities in the accumulation stage of retirement planning.

 

Steve

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Hey, there is some logic here. If you eat the pizza and donuts and have an early cardiac demise then your financial resources don't have to last so long so it doesn't matter that you have been getting cr@ppy financial advice.

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