investing

6 personal tales of bad financial decisions

An annuity that's not all that
An annuity that's not all that © Tkemot/Shutterstock.com

Joe Hewitt of Hewitt and Hewitt Mediators in Dallas has experienced investment losses, but one of his bad financial decisions was investing in an annuity that wound up being a scam.

At the time, he had a $50,000 annuity policy that he had borrowed $7,000 against. "A sweet young lady representing a major insurance company visited my office and told me she could sell me the same policy. It would cost the same per month, and I wouldn't have to pay back the loan because her greater amount of interest would cover it," he remembers.

On the appointed date, Hewitt would be able to collect the $50,000 in cash or roll it over as an annuity and get a monthly lifetime income.

Fast forward 20 years, and the insurance company indicated there would be nothing near $50,000 in value by the maturity date. It was not an annuity at all but a life insurance policy. While a class-action suit had been brought against the company, Hewitt was told he had received notice of it and didn't opt in.

"I learned a $30,000 lesson. Or was it $23,000? Anyway, it hurt. That young lady wasn't really sweet after all," Hewitt says.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Move money to retirement account?

Dear Liz, Can I convert my regular investment account to a retirement account so that an investment made in that account is not taxed? If so, what type of retirement account can I choose? -- Jennifer Dear Jennifer, It's... Read more

advertisement

Blog

Sheyna Steiner

5 banks did very bad things

Five big banks are guilty of manipulating foreign exchange rates. They must pay some very big fines and the banks have promised to cease criminal activity.  ... Read more

Partner Center
advertisement

Connect with us