My mother wants to put all her cds in the woodman of the world. I am worried that they are trying to take advantage of her. They told her to put all of her money in an insurance policy. Does any one know of the Woodman of The World?
2006-11-06 06:06:16 · 5 answers · asked by Anonymous in Business & Finance ➔ Insurance
she says she has to pay high interest on her cds because the state counts that as income
2006-11-06 07:17:19 · update #1
This isn't a scam. But, it is an odd group (Woodman of the World [WOW]). I don't know a lot about them but they are one of several small "fraternal" organizations that bind together to form a common financial base for all the members. International Order of Foresters (IOF) is another one. They sell financial contracts primarily to their members, but their agents can sell outside the group, as far as I know. With some of these organizations, you give them all of your earthly wealth, including real estate, and they promise to take care of you forever. When you die, they keep your assets for the common good of the group. You have to really want safety and security over everything else in life to join up.
2006-11-06 15:37:33 · answer #1 · answered by SafetyDancer 5 · 0⤊ 0⤋
Ya know, I would NEVER put all my eggs in one basket.
An insurance policy is NOT a good investment, EVER. Woodman of the World is NOT an insurance company - I just checked on www.ambest.com to find a rating for it.
So, I think it's a scam, and she's going to get raked over the coals. The sales guy is probably going to take 30% of her $$ off the top, in commisssion. I'd DEFINATELY ask for a commission disclosure, IN WRITING, prior to doing anything - and RUN AWAY from this guy.
2006-11-06 08:30:38 · answer #2 · answered by Anonymous 7 · 0⤊ 0⤋
No legitimate investment company would suggest putting all your eggs in one basket, no matter your age.
To convert CD (Certificates of Deposit, ie cash) into insurance is just ridiculous. Have your mom check and see what would happen if she needs her money for something, like a roof or car. I would bet that they will either lie to her, "you can get it anytime" but not provide the steps needed, or just talk over her and ignore the question.
I have no experience with Woodman of the World, but I am sure your state has a division that deals with insurance licensing. Call them and get info. If the company is not licensed to do business in your state, that would be a huge red flag.
Good for you for looking out for your mom. Have her go talk to a real advisor, like Morgan Stanley. Their consultations are free and although they will try to steer her into buying their securities, they will still give her broad information without taking her money.
Better yet, there are estate attorneys who will sit down with her and look at all her investments and explain the best ways for her to utilize her assets and protect her money for her future uses.
2006-11-06 06:18:37 · answer #3 · answered by Gem 7 · 0⤊ 0⤋
Never put "all your eggs in one basket." That advice sounds outrageous to me and most likely reaching the pockets of a greedy broker. Only connection I know of is with Mutual of Omaha.
For a reputable firm, contact Smith Barney which provides brokerage, investment banking and asset management to corporations, governments and individuals.
http://www.smithbarney.com/
2006-11-06 06:14:27 · answer #4 · answered by JFAD 5 · 0⤊ 0⤋
whole life insurance policies..which i'm assuming you're talking about..with woodmen of the world, or any other company, is a waste of money...much better returns in mutual funds, etc etc
2006-11-06 06:16:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋