Tuesday, June 10, 2014
"Pension predators" act like paday loan artists
Slick salespersons are talking some retirees into forking over most of their pension income streams for upfront cash advances, often for exorbitant interest rates, according to a story in the AARO Bulletin, June 2014, p. 16, the “Your Money” column, article by Marsha Mercer (link). The article (“Beware of pension predators”) gave an example of a Navy Retiree who paid back $42100 in interest for an advance of about $103,000, to Structured Investments Co. of Southern California.
It strikes me that a lot of people feel pressured to go to work selling these kinds of instruments. I got calls about doing this (in northern VA) a few years ago, while my mother was still living. Could I say “No” to these kinds of approaches forever? I did, but I was lucky.