KFI Updates Sunday July 7, 2002: Bens' tips on annuities, SBC may owe you, tips on dealing with the IRS, automobile deals and more

Beware of salesmen bearing gifts...or free seminars...or free meals...trying to sell you annuities!!! They specialize in selling fear; they'll try to woo you with free meals...sometimes they may distort the facts or even conceal crucial information that could end up costing you thousands of dollars. They'll find out what type of car you drive and set you up for what could be one of the worst decisions of your life. The newest (potential) villain intent on separating you from your cash is the annuity salesman. A fascinating story from the July 2, 2002 edition of The Wall Street Journal [WSJ] would be worth buying from their website if the morons at the WSJ designed their site better and allowed searching for specific topics and the purchase of specific articles, but they don't...(aren't they smart?). The article will scare the hell out of you, so let me try to hit the highlights: The article, entitled "Annuities 101: How To Sell To Senior Citizens" focuses on a company called Annuity University [AU] and their training methods for teaching salesmen how to sell annuities to older investors. According to the WSJ article, here's a quote from the author of AU's training manual, spokesman and trainer Tyrone Clark, on how to sell to senior citizens: "Treat them like they're blind 12-year olds." "They buy based upon emotions! Emotions of fear, anger and greed." Bottom line? Salesmen pushing annuities do so because of the big commissions they're paid, and their answer for any financial situation? You got it: Buy annuities! Learn more about this company by visiting their website and reading [and listening] to their own sales pitch to prospective seminar/training material buyers: www.annuityuniversity.com Here's Ben's 5 Tips on avoiding being the next victim of an annuity salesman: 1. Remember there's no free lunch: If they're tempting you with a free informational seminar or maybe even a free meal, be on alert. They're baiting you to get you in and scare you into making some potentially bad decisions. 2. Don't park too close to the door: They preach the use of "spotters"...people watching to see what sort of car you drive up in so they can get an idea of how big a hog they're about to slaughter. Get there early enough so you can park your car out of site and walk a block or two. 3. Don't spill your guts on registration questionnaires: When they ask you the type of information you're interested in, just remember that what ever you tell them will be used to manipulate you in the future. If you tell them you want to learn about something specific, they'll use this in their pitch to get into your front door and into your head...and eventually into your wallet. 4. Don't tell them how much money you've got and where it's parked: They'll poke a million-and-one holes in whatever you're invested in, in order to lead you back to what they're trying to sell you: High commission annuities. 5. Never agree to buy anything: Unless and until you've had a chance to discuss it with savvy family members and since those are few and far between, discuss any moves with your CPA. If you don't have one, it's time to get one. Beware of brainwashed media members! I'm trying to pick on a particular columnist whom I consider to be pretty solid, but she's giving you regurgitated advice that's [in my humble but expert opinion on the subject] the result of years of effective PR from those "non profit" credit counseling services. While I agree with her position about most debt re-negotiation companies being rip-offs [there's a big one that in deep doo-doo here in Southern California ], I vehemently disagree with her blind referral to a non-profit credit counselor. Here's the article from this morning's paper...and here's my informed opinion in a variety of articles on this website from over the years. Are you a SBC-Pacific Bell telephone subscriber? You're probably entitled to some free service! That's right...they got their hand slapped with a $27 million fine for billing consumers for services never ordered or received [oops]...and now they've gotta make it right. Read more about it, here and again here. Do you know what you can or can't legally protect from creditors? Do you know what's safe if you file for bankruptcy? Unless you're a licensed attorney and have some expertise in this area, don't rely on the old unreliable "I heard that you..." b.s. that messes people up and keeps under-informed but over-stressed consumers buried in debt. Consult an expert; LA-based bankruptcy attorney Leon Bayer cleared the air on an e-mail that was a screaming good example of bad information. Let me know if you need direction in locating quality counsel. Speaking of heartburn, let's talk about the IRS: If you find yourself considering bankruptcy, be prepared to get all of your taxes in order. You're gonna have to file all of your returns in order to file a bankruptcy...and my friends at www.slicktax.com are ready, willing and able to help you jump this hoop. They're great at helping you get your returns filed if you haven't done this in awhile...or if you've got some 941 Employment Tax issues...you name it. Let them talk to the IRS and make deals on your behalf...you get to stay clear. E-mail Jay Schlichting directly to set up your free consultation, or call 'em toll-free: (877) 590-2500. [They've been helping distressed taxpayers all over the nation for years and have my personal endorsement.] Looking for a deal on a new automobile? The car wars are on again...and this means some good deals for you. Maybe: Ford announced their "We Will Rock You" summer inventory clearance program designed to blow out their 2002 models to make room for the '03 models coming soon; GM and Chrysler quickly chimed in with their own brand of financing and rebate programs. But can you qualify? How much of this is designed to bait you into the showroom and switch you into a different program when you can't qualify? Read more before you head out to see your local car dealer... Thinking about selling your home? Thinking about buying a house? Wanna try to get as much as you can for your house; tired of watching prices continue to spiral out of control? You're not alone...and this analysis paralysis is gonna bust, sooner or later. Read more about house buying and selling timing and how it will affect your pocketbook... If you have a credit card issued by Chase, Citibank or MBNA, I've got one more example of how they want to keep you in financial servitude for the rest of your life: By the way...the rest of the credit card industry is right there in bed with 'em too as far as I'm concerned. Read this article and get as made as I am... Hey Mom & Dad! Are you responsible for the debts your 18+ kids run up on their credit cards? That's what Paula wanted to know...and the answer is: Probably not. Unless you actually signed the line and took responsibility, and were a co-signer on the account or gave them a card on your account, probably not. But the credit card companies, once again in their almighty pursuit for the dollar, routinely gives college kids cards, knowing the large percentage will bury themselves in debt...and then put the heat on Mom & Dad to bail 'em out. "You don't want your child to start off in the real world with black marks on their credit report, do you???" Sweet. If the kids get themselves into trouble, they need to learn to get themselves out of trouble on their own. If you bail them out, you're simply setting yourself up for bigger problems down the road. Ah yes, tough love..... Should you be worry about keeping stuff out of your medical file? First off, you need to read Ben's column about how to keep stuff out of your "permanent" insurance records; check out the July 4, 2002 column and then read the following comments from, Dr. Harold C., an M.D. in Dallas: "You inadvertently did your readers a disservice by encouraging them to seek medical care from a doctor who will not "note your visit." While it is fine for patients to pay out of pocket for care and avoid insurance filing, it is bad medicine to ask for no chart documentation. For example, a patient with no known drug allergies may get an off-the-record injection from a doctor, but develop a drug reaction. With no record of the visit, how do we protect that patient from getting that same medication in the future? Some drug reactions can be fatal. Please inform your readers of the need for caution in matters of medical documentation. Thanks." No, thank you, Doc. You just did. But I think I'll continue to keep stuff out of my personal file and make sure I do my research to avoid any potentially adverse drug interaction or reactions down the road. Loose lips sink ships.....

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