Regarding the world financial group?

Question

My friend said if i put my money in insurance, they will invest it in mutual funds. Even losing money, they will still pay me 1 percent of interest + my original money. Is this possible? That means I wont losing money even the price of mutual fund i invest in is falling? or is this a lie? Wikipedia says WFG requires an initial deposit of only $30,000 to gain access to their actively managed funds, what does that mean? Isn't just
paying the 100 dollar back ground check to start out or initiallly havng to put 30,000 in the account? Sincerely

Answer 1

Do heavy research on this subject. My family has purchased WFG's insurance product services which they call VUL. The only reason they're promoting this product is because those agents get paid high commission for it. My family is being tied down by VUL, which is the insurance product they're trying to sell you. Those agents will tell you that you should expect a return of 8 percent or higher a year, but the fact is the return is more like 4-6 percent a year, which is worse than having your money in a bank account. You can't withdraw your money, and they require you to borrow your money from your account for .25 percent interest rate. It's your money and you have to borrow it! My mom has been paying for VUL for the past 10 years. She puts $130 in there a month. Right now, there's $10500 in her account. How you like that for an investment?

Answer 2

WFG is one of my clients. I would shop around. There are a lot of great insurance products out there. Annuity and life, so take the time a get an independent broker that can sell with many different companies.

I would ask WFG for a prospectus.

Answer 3

My friend said if i put my money in insurance, they will invest it in mutual funds. Even losing money, they will still pay me 1 percent of interest + my original money. Is this possible? That means I wont losing money even the price of mutual fund i invest in is falling? or is this a lie?

Yes. "羊毛長在羊身上"

Some insurance company have rider like this. You pay for it.
This is one example: Money-Back Guarantee (Return of Premium) Rider.

There so many other riders such as Waiver of Premium (Unemployment) Rider (you get paid when you don't work), etc.

This is simple. You can do this yourself. OK. Let's say you buy an S&P 500 index fund (SPY). You can buy Put Option 賣權. Options are just like insurance to the investor. In your case, you just let your "friend" make the commission.

Here are the lists of option prices for SPY (insurance)
http://finance.yahoo.com/q/op?s=SPY

Usually it takes me half an hour to explain the whole notion of Put and Call. You can read it yourself. If you really need my own article, I will find it on Yahoo Taiwan Knowledge.

http://tw.knowledge.yahoo.com/question/?qid=1405122911903
為什麼說賣權是一種保險
http://tw.knowledge.yahoo.com/question/?qid=1306030702529

From historic perspective, In the long run, the stock market out performs any investment. 95% for 10 years or more. 97% for 15 years. 100% for 20 years. Are you investing or gambling? If you are investing would you put it for more than 15 years? Or just gamble like me who bought LEND at $4.11 yesterday and closing today is $7.04.

http://finance.yahoo.com/q/bc?s=LEND&t=5d

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In the US, you can be charge couple of ways to manage your money:

A. Regular account: Your broker charge you per trade or per transaction. Pro: You have more control. Con: Your brokers may not like you.

B. Manage account: Your broker charge you management fee like a RIA (which I can do). They manage your account and charge you a percentage (not growth, not net, it's the whole assets). Typically, it is .1% per month. In other words, your account is 1M for the year. You get zap $10,000. And your broker can lose money on your assets and he still get the $10,000.
Pro: Your broker care about your account a little bit more. If your assets grow, his commission will grow. Con: You get zap every single month no matter what happen to your investment.