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investing with Primerica?

swenard

TRIBE Member
Okay, I have a question. I have read on here that Primerica is a big scam and have read numerous threads. I just found out that my mother-in-law, who is as bright as a 1 watt light bulb and has had over a hundred thousand dollars of savings scammed from her in the past from financial advisors(people who came up to her on the street!!!!) has all of her remaining life savings invested with Primerica.

My questions is... What should I tell her to do? Is Primerica such a big scam that she can kiss that money good-bye or what? The last thing I want is for her to have to move in with me because she is so broke!
 
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glych t.anomaly

TRIBE Member
my gf used to work for primerica, from what she has told me, they arent all that bad, i can confirm in about 10 mins when she gets her, and even have her PM you anything she may know

needless to say i dont know



[jai]
 
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nawberry

TRIBE Member
It is bad, it is like Avon but with securities, and in typical pyramid scheme fashion only the few organizers at the top make anything.

Primerica also can be tough on friends and family because the "investor" is encouraged to gets others on board.

If she invested heavily I would recommend suing them.
 

Bumbaclat

TRIBE Member
swenard said:
Are you serious?

IS it really that bad?

I don't have first hand on this.... so check a few more opinions first... BUT..It appears at some level to be a scam... so I'm sure your step-mother is not the first person to try and remove money. Your initial move is so important. If you sign the wrogn document they can tie up your money for years. Your first move should be on the advice of a lawyer and before they know you are intending to reclaim your money.

.. but again, wait for a few more posts. I don't have too much info beyond Tribe threads on how bad Primerica is.
 

swenard

TRIBE Member
glych t.anomaly said:
my gf used to work for primerica, from what she has told me, they arent all that bad, i can confirm in about 10 mins when she gets her, and even have her PM you anything she may know

needless to say i dont know



[jai]


That would be appreciated!

As I said, she has all of her money invested with them. It isn't a lot(I have more debt then she has savings) which makes it even more important as she just retired last month.


I was going to refer her to my financial advisor and hopefully he knows how to handle it properly and get her money back.

I know she was all excited at one point that she was going to work for them but luckily she never went for that part of it.
 

Flashy_McFlash

Well-Known TRIBEr
From what I hear, the pyramid scam is more on the selling side than the buying side. I'm sure that their investment strategies aren't exactly as sound as, say, a fucking real broker, but I don't think they're going to jank your dollah.

Has your aunt gotten any statements or anything lately that show the current value of the securities? Has she tried to liquidate the money?
 

Bass-Invader

TRIBE Member
Yeah from what I've seen the scam is definitley on the selling side. What I've heard is that while their actual products have shitty returns, they aren't on the same level of evil as their pyramid recruitment schemes.
 
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swenard

TRIBE Member
That's good to know. I am going to have her meet with my financial advisor today and talk to him about getting her money out of there.


LOL! It is my mother-in-law.So far she has been called my stepmother and my aunt, LOL!
 

swenard

TRIBE Member
Flashy_McFlash said:
From what I hear, the pyramid scam is more on the selling side than the buying side. I'm sure that their investment strategies aren't exactly as sound as, say, a fucking real broker, but I don't think they're going to jank your dollah.

Has your aunt gotten any statements or anything lately that show the current value of the securities? Has she tried to liquidate the money?

Not that I know of. I will ask her though. She really is as dumb as a stump and doesn't know her ass from her face. She will trust anybody that says they work for god, LOL! I once saw a bum come up to her and he told her that god told him to ask her for money as she would be good to him and she gave him her watch, LOL!
 

Flashy_McFlash

Well-Known TRIBEr
Well, the company is affiliated with Citibank (loosely), and the funds are not that bad. I could see it being a relatively safe, if not particularly lucrative investment.

I didn't realize there was a Wiki for it, but there's a lot of info here:
http://en.wikipedia.org/wiki/Primerica

Just make the fuck sure she doesn't sign up to work for them!!!!!!
 

djglobalkiller

TRIBE Promoter
its not really a scam, my mom got an insurance policy withthem that is pretty legit,

i went in for an information meeting a while back, and met one of the "rvp" reps, he was pretty cool, and an honest guy. Gave me the talk, and offered me the same recruitment deal. In some areas it seemed shady, in others it seemed cool. I know that everybody has a misconception of a pyramid scam, but i have never had any problems with them, nor has my mom with her dealings. I dont work for them, but people I know that do, are pretty legit guys, and girls, just trying to make a buck or 2.
Why not just go into an office and talk to a rep, or better yet, your grandmothers rep, and find out???

i think it gets a rep because when people join right away to make money as in a "real job" , they have to be trained, and study, and pass examinations which are enforced by the goverment. You dont get paid until you have clients, its not like you work for 4 hours, you get paid for 4 hours. So people get jaded because they invest time and money in the "job" but dont see cash in hand for the first few months. I guess its like going to school to get trained, you dont get paid to, you pay for it.

They have been investigated before, and I will admit their recruitment tactics are a little strange, they are ultimately trying to get either an associate out of you, or a "sale" out of you.

A real pyramid scam would be that shitty ALPHA CLUB which is so bullshit. but that is for another thread!
 
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Aerius Zension

TRIBE Member
They have similar strategies to companies like World Financial Group (Aegon). It's not a scam in that they do practice business legally, but essentially it is multi-level marketing (pyramid scheme). They focus from on recruiting than investing, which is perfectly legal, but seems kinda fishy.

If they don't want to hire you, then they want the names of 15 of your friends to market themselves to. I'm not comfy with that, but you might be.

Best thing to do is talk to a lawyer, or another financial company. Talk to one of the major 5 banks.
 

Deus

TRIBE Member
We have an acuqintance who is involved with Primerica and my parents deal with him, and have bought into some of their portfolios. The portfolios have done very well, and they seem to be managed well.

The thing that one has to be careful about Primerica is that the people who sell these portfolios are NOT financial advisors, yet they give financial advice, ie. which portfolio you should invest in. These people are not financial experts, they're just sales representatives. So I would suggest investing with them if you know a little bit about investing, otherwise they could sell you something for their own benefit. For example, they may have an internal promotion that if an agent sells so many units of portfolio X, s/he will win a trip to Mexico. Or something similar. So they might want to sell you a product not because they think it is a worthy investment but because they want to go to Mexico. So you do have to be careful with them, but other than that they're ok.

I suggest that you don't sell the investments that your mother in law made, because they have a very high commision rate for selling within the 1st year. I think it's around 7%, and your mother in law doesn't want to lose 7% of her life's savings. I think after 5 years of holding they don't charge commision. So hopefully she invested in something that has long term potential.
 

kuba

TRIBE Member
Tell her to place that 100K into a mutual fund or index-linked spider, and she'll beat 90% of the mutual funds out there. Safe and easy way to make more money. Plus, the management expense ratio-i.e. the % that they take off the top for investing your money- is very low compared to most other funds. With an amount like $100K, she could get a very favourable account at any discout brokerage.
 
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gak

TRIBE Member
my dad is a financial advisor and told me to stay the fuck away from them...he said some people make money there but the vast majority don't...as mentioned above it is a pyramid sceme...
 

Flashy_McFlash

Well-Known TRIBEr
gak said:
my dad is a financial advisor and told me to stay the fuck away from them...he said some people make money there but the vast majority don't...as mentioned above it is a pyramid sceme...

Again, he's probably talking about the selling side. There really isn't anything pyramidlike about buying their securities.
 

Kinger

TRIBE Member
kuba said:
Tell her to place that 100K into a mutual fund or index-linked spider, and she'll beat 90% of the mutual funds out there. Safe and easy way to make more money. Plus, the management expense ratio-i.e. the % that they take off the top for investing your money- is very low compared to most other funds. With an amount like $100K, she could get a very favourable account at any discout brokerage.

Investing properly is a little more complicated than that. You can lose a lot of money doing what you just suggested.
 

kuba

TRIBE Member
How so? Historically, the markets (DJ especially) have beaten 90% of mutual funds.

How is this losing a lot of money?
 
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